Seplat Energy, the energy conglomerate co-founded and partially owned by Nigerian oil mogul Austin Avuru, has declared ambitions to increase gas production by 390 million standard cubic feet per day (mmscf) by the end of the year, indicating a strategy shift toward domestic market supremacy.
Seplat’s Chief Operating Officer, Samson Ezugworie, announced the intentions during the ongoing Oil Technology Conference (OTC) in Houston. The conference, titled “The Future of Energy Transformation in Africa: Clean Energy and Business Sustainability,” gave Ezugworie an opportunity to highlight the organization’s dedication to influencing Africa’s energy environment.
Ezugworie stated that the company plans to add 390 mmscf of production capacity to its current 460 mmscf, bringing total output to 850 mmscf by December. The Assa North Ohaji South (ANOH) and Sapele gas plants must be commissioned before the expansion can proceed.
Ezugworie stated that all of the excess gas will be sent to the Nigerian domestic market in order to boost economic growth. He noted that additional supply might assist address the country’s gas-to-electricity difficulties by connecting the Oben gas plant to the national grid, increasing power generation and enhancing energy availability.
Ezugworie acknowledged industry-wide difficulties such as gas prices and debt, which discourage investment from international oil companies (IOCs). To increase profitability, he advocated for modifications to gas price systems as well as debt reduction.
The latest news comes as Seplat celebrates its transformation from a vision shared by co-founders Ambrosie Bryant Chukwueloka Orjiako and Avuru to a major African energy player. A $500 million initial public offering (IPO) on the London and Nigerian stock exchanges ten years ago spurred Seplat’s expansion.
Seplat has repaid $575 million to shareholders since its IPO, with core dividends increasing by 20% in 2023 to $0.12 per share. Looking ahead, it is committed to promoting innovation, sustainability, and equitable growth in the Nigerian energy sector and beyond. Seplat’s recent concentration on local gas production places it as a crucial player in Africa’s energy transition.
