Seplat Energy Plc has announced plans to drill 17 new wells in 2026 as part of efforts to boost production, with the company targeting output of up to 155,000 barrels of oil equivalent per day.
The plan forms part of the indigenous energy firm’s 2026 business strategy aimed at strengthening production and supporting its long-term 2030 output targets, according to details contained in the company’s 2025 full-year report.
Seplat disclosed that the 2026 drilling programme will involve 17 new wells, most of which will be located onshore.
The report stated, “The 2026 programme includes drilling 17 new wells: onshore, 15 wells; and offshore, two wells.”
The company also announced that its initial production guidance for 2026 has been set at between 135,000 and 155,000 barrels of oil equivalent per day.
“Initial 2026 production guidance is set at 135-155 kboepd,” the company said.
According to the report, onshore operations are expected to account for between 43 and 48 per cent of production, while offshore assets will contribute between 52 and 57 per cent.
Seplat noted that the 2026 drilling activities form part of a broader investment programme with capital expenditure projected at between $360m and $440m.
“Working interest capital expenditure for 2026 is expected to be in the range of $360-$440 million. Capex is expected to be equally split between onshore and offshore,” the report stated.
The company said offshore drilling activities will involve the deployment of a jack-up rig currently in Nigeria for a multi-year campaign.
“The jack-up rig, Shelf Drilling Victory, is currently in Nigeria, and the multi-year, multi-well infill drilling campaign is expected to commence in 3Q,” Seplat said.
It added that the offshore drilling programme for 2026 will focus on two new well completions at Oso in Oil Mining Lease 70.
Seplat explained that its 2026 business plan maintains a strong emphasis on strategic maintenance and asset integrity activities required to support its long-term production growth.
The firm noted that production growth in 2026 will largely be driven by gas and natural gas liquids as the ANOH gas processing plant ramps up operations and the first expansion phase at Oso is completed.
According to the report, the Oso expansion will double the company’s offshore gas sales capacity.
“Production growth will be driven by high-value NGLs and gas as ANOH ramps to full capacity and we complete the first expansion phase at Oso, doubling our offshore gas sales capacity,” the company said.
Seplat added that oil production growth will be supported by restoration of idle wells and drilling of new wells, although output could be affected by planned maintenance activities and downtime at the Yoho field.
The report indicated that Yoho is expected to resume production in the second quarter of 2026 after a fire incident last year.
It also projected strong growth in natural gas liquids production in 2026.
Seplat stated that NGL output at the midpoint of its production guidance is expected to increase by about 85 per cent year-on-year following the successful replacement of the inlet gas exchanger at the East Area Project.
“Improved NGL throughput will be seen from 1Q 2026,” the company noted.
Gas production is also expected to rise significantly, with the midpoint of the company’s guidance indicating an increase of about 30 per cent year-on-year.
Seplat said the increase will be driven by equity production of wet gas from the ANOH project following its start-up in January 2026, as well as higher offshore gas sales expected from the third quarter after the completion of the Oso-BRT Phase 1 expansion.
In terms of operating costs, the company projected that unit operating costs will range between $13.5 and $14.5 per barrel of oil equivalent.
According to the report, the expected increase in production will help reduce unit operating costs compared to the previous year.
“The reduction in unit operating costs versus the prior year reflects the anticipated increase in production, with operating costs expected to remain relatively stable in 2026,” Seplat stated.
However, the company noted that partial shutdowns of offshore assets are expected during the year as part of efforts to improve reliability and asset integrity.
It said such shutdowns are likely to occur particularly in the first and fourth quarters of 2026.
The firm added that its financial strategy is designed to ensure that the company can fund capital expenditure, meet debt obligations and maintain returns to shareholders.
The company explained that its revenue stream remains largely tied to US dollar-denominated oil exports, while gas sales and domestic oil supply generate naira revenue used to fund most local costs.
The report estimated cash tax payments of between $400m and $450m in 2026, based on assumed average prices of $65 per barrel for oil, $39 per barrel for NGL and $2.75 per thousand standard cubic feet for gas.
Seplat also reiterated its dividend policy, stating that its quarterly base dividend of 5.0 cents per share will be maintained for the year.
“With respect to dividends, our quarterly base dividend of USD 5.00/shr will be implemented for the year. Any cash dividend payable in excess of the base amount will be estimated with our half-year results and paid in two instalments with the 3Q and 4Q dividend declaration,” it added.
The company further disclosed that discussions are ongoing with its joint venture partner regarding a potential sale of a 10 per cent working interest in the SEPNU-NNPC joint venture.
However, Seplat said no agreement has been reached, and it would provide updates if there are further developments.
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