Seplat Energy: Nigeria’s Oil Play Under Global ESG Scrutiny
In the evolving global energy landscape, where traditional fossil fuel operations face increasing scrutiny, Seplat Energy Plc (LON: SEPL) stands as a significant indigenous player in Nigeria’s oil and gas sector. Dual-listed on the London Stock Exchange and the Nigerian Exchange, Seplat Energy navigates the dual imperatives of meeting Nigeria’s energy needs and addressing mounting environmental, social, and governance (ESG) pressures. AFYVA delves into how Seplat Energy balances its strategic growth with its commitment to sustainability in a complex operating environment.
Core Operations and Strategic Growth
Seplat Energy's business model is centered on the exploration, development, and production of oil and natural gas, primarily within Nigeria's Niger Delta region. The company's operational strategy involves optimizing existing production from assets like OML 4, OML 38, and OML 41, alongside strategic acquisitions.
A pivotal development for Seplat Energy was the acquisition of Mobil Producing Nigeria Unlimited (MPNU), formerly ExxonMobil's shallow-water and onshore business in Nigeria, which was completed in December 2024. This acquisition significantly expanded Seplat's production capacity and diversified its portfolio, with approximately 70% of its production now coming from offshore sources. This move also granted Seplat operating control of critical infrastructure, including the Qua Iboe Terminal, Bonny River Terminal, and the Yoho Floating Storage and Offloading (FSO) facility.
Financially, Seplat Energy demonstrated robust performance in Q1 2025, reporting revenue of $809 million, a substantial increase from the prior year. This growth was driven by higher hydrocarbon volumes and strong gas sales, reflecting increased production levels (averaging 131,561 barrels of oil equivalent per day in Q1 2025). The company also generated $306.5 million in cash from operations during the same period. Seplat's focus on gas production is particularly noteworthy, as it plays a crucial role in addressing Nigeria's domestic energy needs and driving the country's energy transition efforts. The commissioning of the Sapele Integrated Gas Plant in February 2025 further underscores this commitment, aiming to materially reduce the Group's Scope 1 emissions once fully operational.
Navigating ESG Pressures
The oil and gas industry globally faces intense scrutiny regarding its environmental impact, social responsibility, and governance practices. As an indigenous Nigerian operator, Seplat Energy is particularly attuned to these pressures, which are amplified by local community concerns and international expectations.
Environmental Stewardship: Seplat has publicly committed to significant environmental targets, including reducing its carbon footprint by 30% by 2025. Initiatives like the End of Routine Flaring (EORF) roadmap aim to eliminate routine gas flaring across its onshore assets by the second half of 2025, which would substantially reduce greenhouse gas emissions. The company is investing in technology to optimize operations and minimize its environmental footprint, including the restoration of idle wells (as seen with the revival of 10 wells through SEPNU, adding 11,000 barrels per day to Nigeria’s output without new drilling).
Social Responsibility: Seplat recognizes the importance of its social license to operate within the Niger Delta communities. The company engages in extensive community development programs focused on health, education, and infrastructure improvements. Initiatives like the "Eye Can See" program provide free medical services, while the Seplat Teachers Empowerment Programme (STEP) supports educational development. These efforts aim to foster positive relationships and contribute to local socio-economic well-being.
Governance and Transparency: Seplat maintains a strong corporate governance framework, adhering to international best practices and being dual-listed on both the London and Nigerian stock exchanges. This dual listing mandates adherence to robust reporting and governance standards, providing confidence to international investors. The company's commitment to transparency is reflected in its publicly available policies on anti-bribery, anti-corruption, human rights, and sustainability.
Outlook and Challenges
Seplat Energy's strategic focus on expanding its gas portfolio and optimizing existing oil assets positions it for continued growth, particularly as Nigeria prioritizes gas as a "bridge fuel" for its energy transition. The company's acquisition of the MPNU assets represents a significant step towards doubling its production within six months and enhancing its capabilities across onshore and shallow water operations.
However, the operating environment remains challenging. Geopolitical shifts, global oil price volatility, and the persistent need to address security and environmental issues in the Niger Delta are ongoing factors. Seplat's ability to continue attracting investment, enhance operational efficiency, and deliver on its ambitious ESG targets will be critical for its sustained success and its role in shaping Nigeria’s energy future.
This newsletter is for informational purposes only and does not constitute financial advice or recommendation. Please research or consult a licensed financial advisor before making investment decisions.
Subscribe to 🌍Emerging Alpha by AFYVA at afyva.com
Follow us: LinkedIn, YouTube, X(Twitter), Instagram, Facebook
Sources:
"Seplat Energy Plc: history, ownership, mission, how it works & makes money - dcfmodeling.com." dcfmodeling.com, December 18, 2024. https://dcfmodeling.com/blogs/history/sepll-history-mission-ownership
"Seplat Energy Reports Strong Q1 2025 Results with Revenue Soaring to N1.228 Trillion." Arise News, April 29, 2025. https://www.arise.tv/seplat-energy-reports-strong-q1-2025-results-with-revenue-soaring-to-n1-228-trillion/
"Seplat Energy reports $809m revenue in Q1 - Punch Newspapers." Punch Newspapers, April 29, 2025. https://punchng.com/seplat-energy-reports-809m-revenue-in-q1/
"Seplat's acquisition of ExxonMobil's onshore business helps lift quarterly profit to N35 billion." Premium Times Nigeria, April 28, 2025. https://www.premiumtimesng.com/news/top-news/791140-seplats-acquisition-of-exxonmobils-onshore-business-helps-lift-quarterly-profit-to-n35-billion.html
"Seplat Energy is Redefining Nigeria's Energy Destiny - Global Business Drive." Global Business Drive, June 3, 2025. https://globalbusinessdrive.com/seplat-energy-is-redefining-nigerias-energy-destiny/
"Seplat Energy Plc - Company ESG Risk Rating - Sustainalytics." Sustainalytics, June 11, 2025. https://www.sustainalytics.com/esg-rating/seplat-energy-plc/1147083669
"Seplat 2024 Integrated Report." Seplat Energy, March 4, 2025. https://www.seplatenergy.com/media/qhbnpq54/seplat-2024-integrated-report_final.pdf
"Seplat Energy's Sustainability Drive to Unlock Long-term Value with Dividends Beyond Today - COO." Seplat Energy, April 13, 2025. https://www.seplatenergy.com/news-insights/news/seplat-energy-s-sustainability-drive-to-unlock-long-term-value-with-dividends-beyond-today-coo/
"Mission Statement, Vision, & Core Values (2025) of Seplat Energy Plc. - dcfmodeling.com." dcfmodeling.com. https://dcfmodeling.com/blogs/vision/sepll-mission-vision
"Seplat Energy Revives 10 Idle Wells, Adds 11000 Daily Barrels to Nigeria's Oil Output." CSR Reporters, May 5, 2025. https://csrreporters.com/seplat-energy-boosts-nigerias-oil-output-through-idle-well-revamp-reinforces-csr-and-sustainability-agenda/
"Governance policies | Our governance | Our company - Seplat Energy." Seplat Energy. https://www.seplatenergy.com/our-company/our-governance/governance-policies/
"Our governance overview | Our company - Seplat Energy." Seplat Energy. https://www.seplatenergy.com/our-company/our-governance/
"Stakeholder engagement | Our governance | Our company - Seplat Energy." Seplat Energy. https://www.seplatenergy.com/our-company/our-governance/stakeholder-engagement/
"Seplat Energy PLC - London Stock Exchange." London Stock Exchange. https://www.londonstockexchange.com/stock/SEPL/seplat-energy-plc/company-page
"Seplat Petroleum - SEPLAT.LG Quote - CNBC Africa." CNBC Africa. https://www.cnbcafrica.com/quotes/?ticker=SEPLAT.LG
"Seplat Energy PLC, SEPLAT:LAG summary - FT.com - Markets data." Financial Times. https://markets.ft.com/data/equities/tearsheet/summary?s=SEPLAT:LAG
"Seplat Energy CEO Joins AEW 2025 as Nigeria Accelerates Gas-Driven Growth." African Energy Week Cape Town | AEC Week, May 27, 2025. https://aecweek.com/seplat-energy-ceo-joins-aew-2025-as-nigeria-accelerates-gas-driven-growth/
"Seplat and Nigeria's energy future - The Nation Newspaper." The Nation Newspaper, May 19, 2025. https://thenationonlineng.net/seplat-and-nigerias-energy-future/
"Seplat Energy's 2024 Performance Met, Surpassed Board's Expectations – Chairman." Seplat Energy, May 16, 2025. https://www.seplatenergy.com/news-insights/news/seplat-energy-s-2024-performance-met-surpassed-board-s-expectations-chairman/