Nigerian energy company Seplat Energy Plc is set to reactivate hundreds of dormant oil wells in the country, following its acquisition of Exxon Mobil Corp.'s onshore oil and gas assets in Nigeria. The deal, worth $800 million, is expected to significantly boost Seplat's production capacity and expand its portfolio.

The acquisition, approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October, marks a significant step in leveraging the exit of foreign companies from Africa's largest oil producer. The deal was initially signed in February 2022, with Seplat paying $128 million at the time. This week, the company paid an additional $800 million, with $257.5 million deferred until December 2025 to account for decommissioning, abandonment, and joint venture costs.

Seplat Energy Plc, listed in Lagos and London, considers the acquisition a financially sound move, citing favourable costs and anticipated returns. The company's CEO, Roger Brown, has stated that the deal will double Seplat's production capacity and significantly expand its portfolio. The enlarged company will have equity in 11 blocks (onshore and shallow water Nigeria), 48 producing oil and gas fields, five gas processing facilities, and three export terminals.

The company plans to increase daily oil output from the current 71,000 barrels of oil equivalent per day to over 200,000 barrels daily, although no specific timeline has been provided for achieving this target. The reactivation of hundreds of dormant oil wells is expected to play a significant role in achieving this goal.

The acquisition is seen as a strategic move by Seplat to capitalize on the exit of foreign companies from Nigeria's oil and gas sector. The deal is expected to have significant implications for the country's energy industry, with Seplat emerging as Nigeria's leading independent energy company.

The completion of this acquisition highlights Seplat's commitment to expanding its operations in Nigeria and increasing its contribution to the country's energy sector. As the company moves forward with its plans to reactivate dormant oil wells and increase production capacity, it will be interesting to see the impact on Nigeria's energy landscape.

With the global energy landscape undergoing significant changes, Seplat's acquisition of ExxonMobil's assets in Nigeria is a timely move that could have far-reaching implications for the country's energy sector. As the company works to increase production capacity and expand its portfolio, it will be important to monitor its progress and assess the impact on Nigeria's energy industry.