SEPLAT CEO HAILS NNPCL’S DEBT CLEARANCE AS GAME-CHANGER FOR INDIGENOUS OIL PRODUCERS
BUSINESS - Posted on: 5th Jul. 2025 at 1:06AM
The Chief Executive Officer of Seplat Energy Plc, Roger Brown, has described the Nigerian National Petroleum Company Limited (NNPCL)’s clearance of its longstanding debts as a “game changer” for indigenous oil producers, praising the company’s renewed commitment to financial discipline and operational efficiency.
Speaking on Wednesday during a panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 2025 Nigerian Oil and Gas Conference in Abuja, Brown highlighted the positive transformation in the relationship between the NNPCL and independent operators.
“Yesterday you heard from the GCEO of NNPC talking about what NNPC is doing. One of the big things is cash flows,” Brown said. “When we listed in 2014, we raised $500 million. NNPC owed us $550 million—more than we raised. That is a thing of the past.”
He noted that NNPCL has since restructured its payment and cash flow systems, enhancing transparency and building trust among its partners. “Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership,” he said.
For years, NNPCL struggled under the burden of multi-billion-dollar debts to local and international suppliers, with arrears exceeding $6 billion at one point. The backlog hindered operations, delayed payments to joint venture partners, and undermined investor confidence in the sector. In 2024, both domestic and foreign suppliers temporarily halted petroleum product deliveries due to unpaid debts.
Brown also spoke about Seplat’s successful acquisition of ExxonMobil’s onshore assets in 2024, stating that indigenous operators are now well-equipped to manage divested assets. “We were ready for it,” he said. “The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term.”
He emphasized the resilience of local operators: “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.”
Brown revealed that Seplat currently holds 11 oil and gas blocks, operating eight of them, with growing investments in domestic gas monetisation and exports through LNG and CNG. “We are already supplying NLNG. But we’re also preparing for future LNG projects and investing heavily in domestic gas to meet local demand,” he said.
Also speaking on the panel, Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, applauded NNPCL’s renewed focus on core production targets. “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,” he said.
Irune noted that indigenous companies, once considered fringe players, are now central to Nigeria’s energy strategy. “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.”
In a related development, Ronald Adams, Managing Director of Shell Nigeria, 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 output by mid-2027.
Industry stakeholders at the conference agreed that with NNPCL’s improved financial standing and greater collaboration with indigenous firms, Nigeria’s oil and gas sector is better positioned for long-term growth and stability.
The Chief Executive Officer of Seplat Energy Plc, Roger Brown, has described the Nigerian National Petroleum Company Limited (NNPCL)’s clearance of its longstanding debts as a “game changer” for indigenous oil producers, praising the company’s renewed commitment to financial discipline and operational efficiency.Speaking on Wednesday during a panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation” at the 2025 Nigerian Oil and Gas Conference in Abuja, Brown highlighted the positive transformation in the relationship between the NNPCL and independent operators.
“Yesterday you heard from the GCEO of NNPC talking about what NNPC is doing. One of the big things is cash flows,” Brown said. “When we listed in 2014, we raised $500 million. NNPC owed us $550 million—more than we raised. That is a thing of the past.”
He noted that NNPCL has since restructured its payment and cash flow systems, enhancing transparency and building trust among its partners. “Cash flows have been paid. A very clear line from the NNPC now is alignment. It’s a partnership,” he said.
For years, NNPCL struggled under the burden of multi-billion-dollar debts to local and international suppliers, with arrears exceeding $6 billion at one point. The backlog hindered operations, delayed payments to joint venture partners, and undermined investor confidence in the sector. In 2024, both domestic and foreign suppliers temporarily halted petroleum product deliveries due to unpaid debts.
Brown also spoke about Seplat’s successful acquisition of ExxonMobil’s onshore assets in 2024, stating that indigenous operators are now well-equipped to manage divested assets. “We were ready for it,” he said. “The indigenous sector is thriving because we understand the terrain, we engage communities directly, and we play for the long term.”
He emphasized the resilience of local operators: “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.”
Brown revealed that Seplat currently holds 11 oil and gas blocks, operating eight of them, with growing investments in domestic gas monetisation and exports through LNG and CNG. “We are already supplying NLNG. But we’re also preparing for future LNG projects and investing heavily in domestic gas to meet local demand,” he said.
Also speaking on the panel, Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, applauded NNPCL’s renewed focus on core production targets. “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,” he said.
Irune noted that indigenous companies, once considered fringe players, are now central to Nigeria’s energy strategy. “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.”
In a related development, Ronald Adams, Managing Director of Shell Nigeria, 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 output by mid-2027.
Industry stakeholders at the conference agreed that with NNPCL’s improved financial standing and greater collaboration with indigenous firms, Nigeria’s oil and gas sector is better positioned for long-term growth and stability.
Posted by: Emdee David
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