Seplat Energy Announces Ambitious 2026 Drilling Campaign and Production Targets
Seplat Energy Plc, a leading indigenous energy company in Nigeria, has revealed comprehensive plans for 2026 that include drilling 17 new wells as part of a strategic initiative to significantly boost production capacity. According to the company's 2025 full-year report, this drilling campaign is designed to strengthen operational capabilities and support long-term growth objectives leading up to 2030.
Detailed Production Outlook and Well Distribution
The company has issued its initial production outlook for 2026, projecting average output ranging between 135,000 and 155,000 barrels of oil equivalent per day (boepd). This represents a substantial increase from current production levels and demonstrates Seplat's commitment to expanding its operational footprint in Nigeria's energy sector.
The planned drilling programme will consist of 15 onshore wells and two offshore wells, with the majority of operations concentrated onshore. The company explained that this distribution reflects its strategy to optimize production across its diverse asset base while managing operational complexities associated with different geographical locations.
Capital Expenditure and Investment Allocation
To support this ambitious drilling campaign and other operational activities, Seplat has projected capital expenditure for 2026 to range between $360 million and $440 million. The investment will be evenly divided between onshore and offshore projects, ensuring balanced development across all operational areas. This substantial financial commitment underscores the company's confidence in its growth strategy and the potential of Nigeria's energy resources.
Offshore Operations and Technical Details
Offshore drilling activities will involve the deployment of the jack-up rig Shelf Drilling Victory, which the company confirmed is already positioned in Nigerian waters. The multi-year infill drilling campaign using this specialized equipment is scheduled to commence in the third quarter of 2026.
The offshore programme will also include the completion of two new wells at the Oso field located in Oil Mining Lease 70. Seplat emphasized that offshore assets are expected to account for the larger share of production, contributing between 52% and 57% of total output, while onshore operations will provide between 43% and 48%.
Gas and Natural Gas Liquids Focus
The company noted that much of the expected production growth in 2026 will come from gas and natural gas liquids (NGLs), particularly as the ANOH Gas Processing Plant ramps up operations and the first expansion phase at the Oso facility reaches completion. According to the report, the Oso expansion is projected to double the company's offshore gas sales capacity, representing a significant milestone in Nigeria's gas development sector.
Seplat projected a substantial increase in NGL production, with output potentially rising by approximately 85% year-on-year at the midpoint of its production guidance. This growth is expected following the replacement of the inlet gas exchanger at the East Area Project, with improved NGL processing volumes anticipated from the first quarter of 2026.
Production Restoration and Maintenance Planning
The company added that oil output growth will be supported by the restoration of idle wells and the drilling of new wells, though production may experience temporary impacts from scheduled maintenance and downtime at the Yoho field. Production at Yoho is expected to resume in the second quarter of 2026 following a fire incident that occurred in 2025.
Gas production is forecast to grow strongly, with the midpoint of the company's guidance indicating a potential increase of about 30% year-on-year. Seplat attributed this projected growth to equity production of wet gas from the ANOH project, which commenced operations in January 2026, and higher offshore gas sales expected from the third quarter after completion of the Oso-BRT Phase 1 expansion.
Operational Efficiency and Cost Management
Seplat explained that higher production levels are expected to help reduce operating costs per unit compared with the previous year, even as overall operating expenses remain relatively stable. This efficiency gain represents a key component of the company's financial strategy for 2026.
However, the firm noted that some offshore facilities may experience temporary shutdowns during the year as part of planned maintenance aimed at improving reliability and asset integrity. Such shutdowns are expected primarily in the first and fourth quarters of 2026 and are considered necessary investments in long-term operational stability.
Financial Strategy and Revenue Sources
On its financial outlook, Seplat stated that its strategy is designed to ensure the company can finance capital projects, meet debt obligations, and sustain returns to shareholders. The company explained that most of its revenue comes from US dollar-denominated crude oil exports, while domestic gas sales and local oil supply generate naira income used to cover operating costs in Nigeria.
Potential Joint Venture Stake Sale
In addition to its operational plans, Seplat is currently discussing a potential sale of a 10% stake in its joint venture with NNPC Ltd. This development represents a significant strategic consideration that could influence the company's capital structure and partnership dynamics within Nigeria's energy sector.
The company emphasized that its 2026 plan will prioritize maintenance and asset integrity activities required to sustain production growth over the long term. This comprehensive approach reflects Seplat's commitment to responsible energy development and sustainable operations in Nigeria's evolving energy landscape.
