… as Seplat Energy CEO says action will boost Oil Production
The Nigerian National Petroleum Company (NNPC) Limited on Wednesday got a clean bill of health from oil producers as they claimed that national oil company has cleaned up its legacy debts.
Testifying to this development, the Chief Executive Officer of Seplat Energy Plc, Roger Brown, at a high-powered panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 24th Nigerian Oil and Gas Conference told the audience that the NNPCL has cleared its legacy debts and now operates with improved financial alignment and discipline, a development he described as “a game changer” for indigenous oil producers.
Brown praised NNPCL for its renewed focus on operational efficiency and partnership.
He said, “Yesterday (Tuesday), you heard from the GCEO of NNPC talking about what NNPC is doing. One of the big things is cash flows and ensuring that, and I will tell you a story. When we listed in 2014, we raised $500m, that is half a billion dollars. And NNPC owed us $550m. More than we raised in our IPO. And that is a thing of the past.”
The Seplat Plc boss stated that the NNPC has since transformed its payment and cash flow structure, creating room for smoother partnerships with independent producers.
“Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership. And that’s what the indigenous players are bringing to the party here,” he said.
Recall that the NNPC had long struggled under the crushing weight of multi-billion-dollar debts owed to both local and international suppliers of petroleum products. The backlog, which spanned years, severely constrained operations, delayed payments to joint venture partners, and eroded investor confidence across the oil and gas value chain.
In 2024, domestic and foreign suppliers of petroleum products stopped supplying the commodity due to about $6bn debt.
Reflecting on Seplat’s acquisition of ExxonMobil’s onshore assets in 2024, Brown said indigenous companies were now better prepared to operate and optimise divested assets.
“So when we completed the Mobil acquisition last year, we were ready for it. The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term,” he said.
He added, “When things go wrong, which they inevitably will, we don’t panic. In 2016, our pipeline was shut down. In 2017, we didn’t run away. You can’t run from your own home. That’s the mindset we bring to these prolific assets in the onshore and shallow water offshore space.”
Brown noted that Seplat currently holds 11 blocks, eight of which it operates, across oil and gas terrains, with a growing focus on domestic gas monetisation and exports through LNG and CNG.
“We are already supplying NLNG. But we’re also preparing for LNG projects under development, and we’re investing heavily in domestic gas to meet local demand,” he added.
Also speaking on the panel, the Managing Director, Oando Energy Resources Nigeria Limited, Dr Ainojie Irune, lauded the NNPC’s strategic focus and improved collaboration with independent operators.
“This is the first time we have a national energy company focused on production targets, not distracted by unrelated mandates. It’s staffed by the right people in the right places,” Irune said.
“Charity begins at home, and NNPC has begun that charity. They are tackling security, OPEX, and even streamlining contracting processes. The rest of us must align.”
According to him, indigenous companies, once considered fringe players, are now the backbone of Nigeria’s energy future. “Independents have moved from the base of the pyramid to leading Nigeria’s upstream strategy. With a reliable partner like NNPCL, the future is very achievable,” he said.
Meanwhile, the Managing Director of Shell Nigeria, Ronald Adams, has announced that the Ubonga North oil project, which reached Final Investment Decision in December 2024, is expected to add up to 100,000 barrels of crude oil per day to Nigeria’s production capacity by mid-2027.
