Seplat Energy plans to invest up to $320 million in new wells and infrastructure in Nigeria this year, aiming to more than double its oil output to as much as 140,000 barrels per day following its acquisition of Exxon Mobil’s Nigerian assets. Meanwhile, U.S. President Donald Trump’s administration said on Tuesday it is ending a license that it had granted to U.S. oil producer Chevron since 2022 to operate in Venezuela and export its oil, after Washington accused President Nicolas Maduro of not making progress on electoral reforms and migrant returns. Chevron will have through April 3 to wind down exports from Venezuela, according to an update of the license, published by the U.S. Treasury Department. The Venezuelan communications ministry did not immediately respond to a request for comment on the move. The Office of Foreign Assets Control (OFAC) Department did not provide further guidance.
When the reversal of the license, which has allowed Chevron to export more than 200,000 barrels per day of crude from Venezuela, was announced by Trump last week, Venezuela’s vice president Delcy Rodriguez called it “a damaging and inexplicable decision.” Chevron’s joint ventures with state oil company PDVSA represent over a quarter of the country’s entire oil output. Maduro’s 2024 re-election was backed by Venezuela’s electoral authority and top court, but vehemently contested by the opposition, the U.S. and others. Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an “economic war” designed to cripple Venezuela.
Seplat secured government consent last October to acquire 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, and 51% of the Bonny River natural gas liquids recovery plant previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local unit. This acquisition is a large part of the projected production increase, which could take the company’s onshore and shallow water oil output from an average 48,618 bpd last year to up to 140,000 bpd, with the former Exxon assets contributing 60%. “This year we will focus on re-opening previously shut-in wells in SEPNU (the former Exxon assets), alongside another full drilling campaign for our onshore assets,” Seplat CEO Roger Brown said while announcing 2024 results.
The company reported profit before tax of 379.4 million up from 191.million last year, revenue of $1.116 billion, up 5% from the year before, year-end cash at bank of $469.9 million, and net debt at International oil companies shut in much of their onshore and shallow-water oil production in Nigeria following years of sabotage and disputes with local communities over leaks. The company also plans to drill 13 new wells onshore this year and complete its ANOH gas plant. Reuters
Seplat plans $320m investment in new assets production drive, US orders wind down of Chevron’s oil exports from Venezuela in 30 days
