By Benson Daniel
Seplat Energy Plc has set its sights on returning at least $1 billion to shareholders through dividends over the next five years as the indigenous energy company pushes ahead with an ambitious expansion strategy.
The company’s dividend target covers the 2026 to 2030 period and forms part of a broader plan to grow production, strengthen cash generation and deliver higher returns to investors.
Seplat’s management has linked the shareholder return strategy to the company’s expanded operations following the integration of the former Mobil Producing Nigeria Unlimited assets.
The integration has significantly increased the scale of Seplat’s operations and provided the company with a larger production base from which to pursue its medium term growth plans.
The company is targeting joint venture production of about 500,000 barrels per day as part of its longer term ambition, while also seeking to increase its own working interest production substantially by 2030.
Chief Executive Officer of Seplat Energy, Effiong Okon, said the company was pursuing aggressive growth across its oil, gas and exploration businesses while maintaining a strong focus on capital discipline.
The dividend commitment is built around a policy of returning between 40 per cent and 50 per cent of free cash flow to investors during the 2026 to 2030 cycle.
Seplat has also maintained a minimum annual dividend commitment under the policy, providing shareholders with greater visibility over potential returns while allowing the company to retain sufficient funds for investment.
The company’s latest financial performance has strengthened its capacity to pursue the strategy. Higher production, stronger oil prices and the contribution of its expanded asset portfolio have supported cash generation.
For 2026, Seplat expects total dividends linked to underlying business performance to reach about $270 million. An additional transaction related dividend could take the year’s total shareholder distribution to approximately $410 million, subject to the completion of the relevant transaction.
The company’s second quarter dividend included a five cents per share interim payment and a seven cents per share special dividend, reflecting its intention to combine regular shareholder returns with additional distributions when business performance allows.
Seplat is also planning significant investment in its operations as it seeks to increase production and improve the value generated from its oil and gas assets.
The strategy comes at a time when Nigeria is seeking greater participation by indigenous companies in the development of its petroleum resources, particularly as international oil companies continue to restructure their portfolios in the country.
Seplat’s growing asset base places it among the leading indigenous players in Nigeria’s upstream industry and gives the company a larger role in domestic oil and gas production.
The company’s management has stressed that production growth and shareholder returns will need to advance together, with disciplined spending and stronger operational performance expected to provide the cash flow required to fund both priorities.
For investors, the $1 billion dividend commitment represents a significant component of Seplat’s value proposition over the next five years.
The company’s ability to meet the target, however, will depend on production levels, crude oil prices, operating costs, capital expenditure and the wider operating environment in Nigeria’s petroleum industry.
Seplat said it remains confident in its growth strategy as it works towards becoming a larger integrated energy company while maintaining its focus on sustainable returns to shareholders.
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