Seplat Energy completes onshore asset conversion to PIA fiscal regime

Seplat Energy Plc, a leading Nigerian independent energy company, has completed the conversion of its onshore operated assets to the Petroleum Industry Act (PIA) fiscal regime, the company announced in a corporate disclosure to the Nigerian Exchange Ltd. on Tuesday.

The conversion, carried out by Seplat’s subsidiaries Seplat West Ltd. and Seplat East Onshore Ltd., transitioned assets from the Petroleum Profit Tax regime to the PIA framework. 

The move covers assets formerly held under Oil Mining Leases (OMLs) 4, 38, 41, and 53, which produced an average of 42,591 barrels of oil equivalent per day in the first nine months of 2025, representing about 31 percent of the company’s total production for the period.

Seplat said the PIA fiscal framework is expected to drive increased investment, production growth, and improved operational efficiency, in line with its corporate strategy. 

The anticipated effects of the conversion were already incorporated into the company’s medium-term guidance presented at its Capital Markets Day in September 2025.

The company also plans to convert its offshore assets to the PIA fiscal regime by 2027. 

Following the execution of conversion contracts in February 2023, Seplat and its joint venture partners have completed all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission. 

New Petroleum Mining Lease and Petroleum Prospecting Licence numbers have been issued, with operations under the PIA expected to commence from January 1, 2026, subject to regulatory guidance.

Commenting on the development, Seplat CEO Roger Brown said, “Conversion to the PIA fiscal regime has been an important focus for Seplat. 

We are delighted to have delivered, along with our respective JV partners, the conversion of our onshore operated assets to the PIA regime within the timeline outlined at our recent Capital Markets Day. 

We recognise the enhanced value creation opportunities that we can benefit from, post conversion.”

He added that the move “lays a path to improved profitability and cashflow margins in our onshore business.”