Seplat Energy Plc has finished moving its operated onshore assets into the Petroleum Industry Act fiscal regime, ending the use of the Petroleum Profit Tax system. The company expects the shift to strengthen profitability and improve how the assets are run.
In a notice submitted to the Nigerian Exchange Limited, Seplat said its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, completed the conversion after meeting all technical and regulatory conditions set by the Nigerian Upstream Petroleum Regulatory Commission. The assets were previously operated under Oil Mining Leases 4, 38, 41, and 53.
According to the company, the converted assets were formerly held under OMLs 4, 38, 41, and 53 and produced an average working interest output of 42,591 barrels of oil equivalent per day in the first nine months of 2025. This represented about 31 percent of Seplat’s total production over that period.
Seplat added that its converted onshore assets delivered average working interest production of 42,591 barrels of oil equivalent per day during the first nine months of 2025, contributing roughly 31 percent of the company’s overall output.
Following the allocation of new Petroleum Mining Lease and Petroleum Prospecting License numbers, Seplat expects operations under the Petroleum Industry Act to begin on 1 January 2026, subject to further regulatory direction.
The company explained that after signing the conversion contracts in February 2023 in line with the Petroleum Industry Act, it and its joint venture partners have now met all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission. New license numbers have been issued, and operations under the Act are scheduled to start from 1 January 2026, pending regulatory guidance.
Seplat said the conversion supports its broader plan to attract more investment, grow production, and improve operational performance. It also noted that the expected effects of the new fiscal regime were already reflected in its medium-term outlook shared during its Capital Markets Day in September 2025.
Chief Executive Officer Roger Brown provided an update, stating that the company successfully completed the conversion of its onshore assets within the previously communicated timeframe to investors. He said the new fiscal system offers stronger opportunities for value creation and supports better profitability and cash flow margins in the onshore portfolio.
The company also restated its intention to complete the conversion of its offshore assets to the Petroleum Industry Act fiscal regime by 2027.
source:punchng.com
African Energy Council