Seplat Energy Plc has announced the launch of $650 million in Senior Notes due 2030, aimed at refinancing and repurchasing existing notes that are set to mature in April 2026.
The company disclosed this information in a statement filed with the Nigerian Exchange on March 14, 2025, and signed by Chief Financial Officer Eleanor Adaralegbe.
According to the company, the new 9.125% senior notes, guaranteed by certain subsidiaries, will primarily be used to repurchase the outstanding 7.750% Senior Notes that are due in 2026 while also covering transaction-related expenses. Seplat also confirmed that a concurrent tender offer for all outstanding 2026 Notes has commenced, a process contingent upon the successful completion of the new notes offering. The expiration and withdrawal deadline for this offer is set for 5:00 PM New York Time on March 18, 2025, as outlined in the Offer to Purchase dated March 11, 2025.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
Following the completion of the tender offer and subject to meeting the financing condition, Seplat intends to redeem any remaining outstanding 2026 Notes under the terms of the indenture governing the 2026 Notes, originally issued in April 2021. Seplat also made it clear that while priority will be given to investors who indicate their intention to tender existing notes, final allocation decisions will be influenced by multiple factors.
The company is not obligated to allocate new notes solely based on expressed interest, and the actual amounts allocated may differ from what was initially tendered.
This move comes at a time when Seplat is experiencing significant growth in its production capacity, largely driven by its recent acquisition of Mobil Producing Nigeria Unlimited (MPNU), which has since been renamed Seplat Energy Producing Nigeria Unlimited (SEPNU). The acquisition has bolstered Seplat’s overall output, with its onshore assets averaging 48,618 barrels of oil equivalent per day (boepd) in 2024, reflecting a 2% increase from the 47,758 boepd recorded in 2023.
With the integration of SEPNU, Seplat’s total production has now reached 52,947 boepd, marking a considerable boost in its market position. Furthermore, the acquisition has resulted in an 85% surge in Seplat’s independently audited 2P reserves, which now stand at 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023.
Seplat’s latest financial maneuver highlights the intensifying competition in Nigeria’s energy sector, where industry heavyweights like Shell, ExxonMobil, and TotalEnergies are either divesting assets or shifting focus to offshore operations. This transition has created an opening for Nigerian indigenous energy firms like Seplat, Aiteo, and Oando to expand their footprint. However, Seplat’s recent acquisition of MPNU places it in direct competition with other big players such as NNPC Limited, which has aggressively pursued asset takeovers in the country’s oil and gas sector.
Nigeria’s upstream oil sector is currently witnessing a wave of asset transfers as international oil companies continue to exit onshore operations due to mounting security concerns, regulatory challenges, and environmental pressures. The Nigerian government, through NNPC Limited, has positioned itself as a major contender, acquiring key oil blocks and aggressively competing with private sector firms in an attempt to consolidate control over the sector. This dynamic has intensified the rivalry between NNPC and Seplat, especially after NNPC’s failed legal attempt to block Seplat’s acquisition of MPNU.
The growing influence of private firms in the industry, however, indicates that the sector is shifting toward a more competitive and diversified market.
However, crude oil production has struggled due to theft, pipeline vandalism, and regulatory uncertainties, which have hampered investments. While Seplat’s expansion efforts signal confidence in the industry’s long-term prospects, it remains to be seen whether the company can sustain growth in the face of stiff competition and broader economic constraints.
With the launch of the $650 million Senior Notes, Seplat is not only securing its financial stability but also positioning itself as a dominant force in Nigeria’s oil and gas sector. As competition between major players continues to escalate, the industry is set for further transformation, with indigenous firms playing an increasingly critical role in shaping the future of Nigeria’s energy industry.
