Seplat completes onshore assets conversion

Seplat Energy Plc has completed the conversion of its operated onshore assets to the Petroleum Industry Act fiscal regime, replacing the former Petroleum Profit Tax framework, in a move expected to support improved profitability and operational efficiency.

The company disclosed in a notice filed on the Nigerian Exchange Limited on Tuesday that its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, concluded the conversion process after fulfilling all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission. The assets involved were previously held under Oil Mining Leases 4, 38, 41 and 53.

“The conversion relates to assets formerly held under OML’s 4, 38 & 41 and 53, which in the first nine months of 2025, averaged working interest production of 42,591 boepd, representing approximately 31% of the Company’s Total production.”

Seplat said the converted onshore assets recorded average working interest production of 42,591 barrels of oil equivalent per day in the first nine months of 2025, accounting for about 31 per cent of the company’s total production during the period.

With the issuance of new Petroleum Mining Lease and Petroleum Prospecting Licence numbers, operations under the Petroleum Industry Act are expected to commence from 1 January 2026, subject to regulatory guidance.

“Following the execution of the Conversion Contracts in February 2023 in compliance with the PIA, Seplat and its Joint Venture partners have now completed all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission. New Petroleum Mining Lease and Petroleum Prospecting License numbers have now been issued, and subject to the regulatory guidance, operations under the PIA are expected to commence from 1 January 2026,” the statement read.

The company noted that the conversion aligns with its strategy of driving increased investment, production growth and improved operational efficiency. The anticipated impact of the new fiscal regime was already incorporated into Seplat’s medium-term guidance presented at its Capital Markets Day in September 2025.

Commenting on the development, Seplat’s Chief Executive Officer, Roger Brown, said the conversion of the onshore assets was delivered within the timeline earlier communicated to investors. He added that the new fiscal framework presents enhanced value creation opportunities and lays the foundation for improved profitability and cash flow margins in the company’s onshore business.

Seplat also reiterated its plan to complete the conversion of its offshore assets to the Petroleum Industry Act fiscal regime by 2027.