Seplat Energy Plc has completed the conversion of its operated onshore assets to Nigeria’s Petroleum Industry Act fiscal framework, formally replacing the Petroleum Profit Tax regime.
The conversion was executed through its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, following the completion of all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission.
The transition covers assets previously held under Oil Mining Leases 4, 38, 41, and 53. These assets delivered average working interest production 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 during the period.
The scale of the assets underlines the material impact of the conversion on Seplat Energy’s operational and financial profile.
Seplat disclosed that conversion contracts were executed in February 2023 in compliance with the Petroleum Industry Act.
Following regulatory approvals, new Petroleum Mining Lease and Petroleum Prospecting Licence numbers have now been issued. Subject to final regulatory guidance, operations under the PIA framework are expected to commence from 1 January 2026.
The company stated that the Petroleum Industry Act supports increased investment, production growth, and improved operational efficiency.
The anticipated impact of the conversion had already been incorporated into Seplat Energy’s medium-term guidance presented to investors at its Capital Markets Day in September 2025.
Management views the transition as a pathway to improved profitability and stronger cashflow margins within the onshore business.
Chief Executive Officer Roger Brown said the conversion was completed within the timeline communicated to investors and delivered in collaboration with joint venture partners.
He noted that the company recognises the enhanced value creation opportunities available following the transition and reaffirmed that the PIA conversion was a core assumption underpinning its medium-term outlook.
Seplat Energy also confirmed that it continues to target the conversion of its offshore assets to the Petroleum Industry Act by 2027, signalling a phased but comprehensive alignment of its asset base with Nigeria’s restructured upstream fiscal framework.
Seplat Energy is listed on the Premium Board of the Nigerian Exchange Limited and on the Main Market of the London Stock Exchange. Following the acquisition of Mobil Producing Nigeria Unlimited, the company operates an expanded portfolio of eleven oil and gas blocks across onshore and shallow water locations in the Niger Delta.
It also holds operated interests in key export and processing infrastructure, including the Qua Iboe export terminal, the Yoho floating storage and offloading vessel, and the Bonny River Terminal NGL recovery plant, alongside onshore gas processing facilities at Oben and Sapele.
The completion of the PIA conversion removes fiscal uncertainty over a significant portion of Seplat Energy’s production base and positions the company for improved margin visibility as operations transition fully to the new regime from 2026.
