By: Tijani Salako.

Seplat Energy has unveiled plans to deliver about $1 billion in shareholder dividends over the next five years as the indigenous energy giant intensifies efforts to expand production, deepen integration synergies and strengthen investor returns following its transformational acquisition of Mobil Producing Nigeria Unlimited assets.

The company disclosed the ambitious shareholder return target during its 13th Annual General Meeting in Lagos, where management outlined a multi-year strategy focused on aggressive production growth, operational efficiency and long-term value creation.

Chairman of the company, Udoma Udo Udoma, said Seplat had entered a new growth phase following the successful completion and integration of the former ExxonMobil onshore shallow-water assets.

According to him, the integration has already delivered substantial operational and financial benefits, including consolidation into a single headquarters to reduce costs and improve efficiency.

“We are always looking at ways of keeping our costs down and our profits up because our commitment is to return value to shareholders,” he said.

Seplat shareholders approved a total dividend payout of ₦113.78 per share for the 2025 financial year, comprising a final dividend of five US cents and a special dividend of 3.3 US cents per share.

Management said the payout reflects strong cash generation and confidence in the company’s future earnings capacity.

The company also disclosed plans to ramp up production to 200,000 barrels per day on a working-interest basis and about 500,000 barrels per day at group level over the next few years.

Chief Executive Officer of the company, Roger Brown, described the post-acquisition Seplat as a “much bigger and more robust business,” revealing that the company now controls 11 oil blocks, 48 producing fields and five gas processing plants across onshore and offshore operations.

He added that Seplat currently holds about 1.1 billion barrels in 2P reserves and roughly 2.5 billion barrels in total resources.

The company further revealed that its 2026 production guidance stands between 120,000 and 135,000 barrels of oil equivalent per day, positioning the firm among Nigeria’s largest indigenous energy producers.

Management attributed the company’s recent market re-rating to stronger operational fundamentals and improved investor confidence, noting that Seplat’s share price recently crossed ₦10,000 on the Nigerian Exchange while maintaining strong performance on the London market.

Executives also highlighted the company’s strict capital allocation model and cost discipline, which they said had helped sustain strong margins despite macroeconomic pressures.

Chief Financial Officer of the company, Eleanor Adaralegbe, disclosed that Seplat generated significant free cash flow during the first quarter of 2026 as average crude oil prices climbed to about $86 per barrel.

She said the company remained resilient even under lower oil price scenarios due to conservative budgeting assumptions and operational efficiency measures.

The Chief Operating Officer of the company, Samson Ezugworie, also confirmed that pipeline losses across its operations had fallen sharply to about 3.8 per cent from previous double-digit levels following improved surveillance and collaboration with security agencies.

Ezugworie further disclosed that the company’s idle well restoration programme added roughly 50,000 barrels per day to production in 2025, while another phase of restoration projects is expected this year.

Industry analysts say the combination of production growth, reserve expansion, cost optimisation and shareholder returns may further strengthen Seplat’s position as one of Africa’s most valuable indigenous energy companies.