Seplat Energy Plc has restored 41 previously idle offshore oil and gas wells, adding 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day to its gross joint venture production capacity in the first nine months of 2026.

The Nigerian energy company disclosed the development on Thursday, October 29, while announcing its unaudited financial results for the nine months ended September 30, 2026.

According to the company’s results released to the Nigerian Exchange Limited (NGX) and London Stock Exchange (LSE), the well restoration programme formed part of efforts to improve production from existing offshore assets.

Of the 41 wells restored during the period, four were gas wells.

The additional capacity represents the production potential brought back through the restoration programme and should not be confused with actual daily production volumes.

The development comes as Seplat recorded a 174 per cent increase in net profit to $260.2 million, compared with $95.1 million in the corresponding period of 2025.

Revenue also increased by 27 per cent to $2.76 billion, up from $2.18 billion recorded in the first nine months of last year.

The company attributed its stronger financial performance to improved production and higher realised crude oil prices during the review period.

Average working interest production rose by seven per cent to 144,999 barrels of oil equivalent per day, compared with 135,636 barrels recorded in the corresponding period of 2025.

Production performance improved further in the third quarter, averaging 155,801 barrels of oil equivalent per day, representing a 13 per cent increase from the same quarter of 2025.

Onshore production also recorded a 22 per cent year-on-year increase during the nine-month period.

Gas production strengthens as ANOH begins commercial deliveries

Beyond oil production, Seplat reported improved performance across its domestic gas operations, supported by the continued expansion of production at the ANOH gas processing plant.

The company confirmed that the facility recorded its first commercial gas sales through the Obiafu–Obrikom–Oben (OB3) pipeline in September.

The development represents another stage in the commercial operation of the ANOH project, which is designed to process up to 300 million standard cubic feet of natural gas daily.

Seplat said its onshore business achieved record gas production levels during the third quarter, supported by increased output from ANOH and improved performance across its western assets.

The development is significant for Nigeria’s domestic gas market, where reliable supply remains essential for electricity generation and industrial operations.

However, increased processing capacity does not automatically guarantee higher gas deliveries to consumers, as transportation infrastructure, commercial demand and operational reliability also influence supply.

Pipeline damage delays Yoho production

Despite the improvement in production performance, Seplat disclosed that the restoration of its Yoho offshore project had encountered delays.

The company explained that although restoration activities were completed during the third quarter, the discovery of pipeline damage had prevented the facility from returning to production.

Repair work is ongoing, with the company expecting production to commence during the fourth quarter of 2026.

The development highlights the continuing importance of pipeline reliability in efforts to increase output from existing Nigerian oil and gas assets.

While well restoration can recover production capacity, associated pipelines and processing facilities must also be operational before the additional hydrocarbons can be delivered to market.

Seplat also disclosed an oil and gas discovery at the Aku-01 exploration well, located within Petroleum Prospecting Licence PPL 2A25.

The discovery, made after the September reporting period, identified hydrocarbons across five reservoir intervals.

According to the company, the results have improved its understanding of four additional exploration prospects within the licence.

A second exploration well is being planned for 2027 to test one of the prospects.

The discovery provides a potential opportunity for future production growth, although the company has not announced commercially recoverable reserve volumes from the new find.

Stronger cash flow supports debt repayment

On its financial performance, Seplat reported adjusted earnings before interest, taxes, depreciation and amortisation of $1.53 billion, representing a 38 per cent increase from $1.11 billion in the corresponding period of 2025.

The company generated $1.48 billion in cash from operations and recorded free cash flow of $749 million during the nine-month period.

Its net debt declined by 65 per cent to $234.9 million at the end of September, compared with $673.3 million at the close of 2025.

Seplat further disclosed that it repaid the outstanding $100 million balance on its acquisition financing facility on October 27.

With the repayment, the company said it had cleared all debt originally raised to finance its acquisition of Mobil Producing Nigeria Unlimited in 2024.

The debt reduction comes amid increased earnings supported by higher crude prices.

The company reported an average realised oil price of $96.19 per barrel during the first nine months of 2026, compared with $71.93 per barrel in the corresponding period of 2025.

In the third quarter alone, Seplat achieved an average realised price of $100.44 per barrel, exceeding the average Brent benchmark by $10.21.

Seplat raises dividend, revises production outlook

Following the stronger performance, Seplat announced a third-quarter dividend of 19 US cents per share, equivalent to approximately $114 million.

The payment comprises a five-cent core dividend and a 14-cent special dividend.

Total dividends declared since the beginning of 2026 have consequently reached 40 cents per share, while the company retained its full-year dividend guidance of approximately $270 million.

Seplat also revised its production outlook for 2026, narrowing the expected range to between 145,000 and 155,000 barrels of oil equivalent per day, from an earlier projection of 135,000 to 155,000 barrels.

However, the company reduced its capital expenditure guidance to between $280 million and $340 million, compared with the previous range of $360 million to $440 million.

The adjustment was attributed mainly to the rescheduling of planned spending following the late arrival of an offshore drilling rig.

At the same time, anticipated unit operating costs increased to between $15.50 and $16.50 per barrel of oil equivalent, reflecting additional costs associated with the Yoho project.

Commenting on the results, Seplat Energy Chief Executive Officer, Engr. Effiong Okon, said improved production and strong crude oil prices had contributed to the company’s performance.

In his first financial update since assuming the position, Okon expressed confidence in the company’s ability to deliver production growth through existing assets, improved operational efficiency and new exploration opportunities.

He also identified the ongoing integration of the company’s assets and continued investment in operational capabilities as priorities for future growth.

The nine-month results highlight the role that restoring dormant wells can play in increasing Nigeria’s petroleum production without depending entirely on new discoveries.

However, the delayed return of the Yoho project also demonstrates that the success of such interventions depends on the condition of supporting infrastructure.

With Seplat targeting higher output during the final quarter of 2026, the completion of pipeline repairs, continued growth in gas production and the performance of its restored offshore wells will remain important to achieving its revised production guidance.