Seplat Energy Plc has announced plans to drill 17 new wells in 2026 as part of efforts to boost production, with the company targeting output of up to 155,000 barrels of oil equivalent per day.

The plan forms part of the indigenous energy firm’s 2026 business strategy aimed at strengthening production and supporting its long-term 2030 output targets, according to details contained in the company’s 2025 full-year report.

Seplat disclosed that the 2026 drilling programme will involve 17 new wells, most of which will be located onshore.

The report stated, “The 2026 programme includes drilling 17 new wells: onshore, 15 wells; and offshore, two wells.”

The company also announced that its initial production guidance for 2026 has been set at between 135,000 and 155,000 barrels of oil equivalent per day.

“Initial 2026 production guidance is set at 135-155 kboepd,” the company said.

According to the report, onshore operations are expected to account for between 43 and 48 per cent of production, while offshore assets will contribute between 52 and 57 per cent.

Seplat noted that the 2026 drilling activities form part of a broader investment programme with capital expenditure projected at between $360m and $440m.

“Working interest capital expenditure for 2026 is expected to be in the range of $360-$440 million. Capex is expected to be equally split between onshore and offshore,” the report stated.

The company said offshore drilling activities will involve the deployment of a jack-up rig currently in Nigeria for a multi-year campaign.

“The jack-up rig, Shelf Drilling Victory, is currently in Nigeria, and the multi-year, multi-well infill drilling campaign is expected to commence in 3Q,” Seplat said.

It added that the offshore drilling programme for 2026 will focus on two new well completions at Oso in Oil Mining Lease 70.

Seplat explained that its 2026 business plan maintains a strong emphasis on strategic maintenance and asset integrity activities required to support its long-term production growth.

The firm noted that production growth in 2026 will largely be driven by gas and natural gas liquids as the ANOH gas processing plant ramps up operations and the first expansion phase at Oso is completed.

According to the report, the Oso expansion will double the company’s offshore gas sales capacity.

“Production growth will be driven by high-value NGLs and gas as ANOH ramps to full capacity and we complete the first expansion phase at Oso, doubling our offshore gas sales capacity,” the company said.

Seplat added that oil production growth will be supported by restoration of idle wells and drilling of new wells, although output could be affected by planned maintenance activities and downtime at the Yoho field.

The report indicated that Yoho is expected to resume production in the second quarter of 2026 after a fire incident last year.

It also projected strong growth in natural gas liquids production in 2026.

Seplat stated that NGL output at the midpoint of its production guidance is expected to increase by about 85 per cent year-on-year following the successful replacement of the inlet gas exchanger at the East Area Project.

“Improved NGL throughput will be seen from 1Q 2026,” the company noted.

Gas production is also expected to rise significantly, with the midpoint of the company’s guidance indicating an increase of about 30 per cent year-on-year.

Seplat said the increase will be driven by equity production of wet gas from the ANOH project following its start-up in January 2026, as well as higher offshore gas sales expected from the third quarter after the completion of the Oso-BRT Phase 1 expansion.

In terms of operating costs, the company projected that unit operating costs will range between $13.5 and $14.5 per barrel of oil equivalent.

According to the report, the expected increase in production will help reduce unit operating costs compared to the previous year.

“The reduction in unit operating costs versus the prior year reflects the anticipated increase in production, with operating costs expected to remain relatively stable in 2026,” Seplat stated.

However, the company noted that partial shutdowns of offshore assets are expected during the year as part of efforts to improve reliability and asset integrity.

It said such shutdowns are likely to occur particularly in the first and fourth quarters of 2026.

The firm added that its financial strategy is designed to ensure that the company can fund capital expenditure, meet debt obligations and maintain returns to shareholders.

The company explained that its revenue stream remains largely tied to US dollar-denominated oil exports, while gas sales and domestic oil supply generate naira revenue used to fund most local costs.

The report estimated cash tax payments of between $400m and $450m in 2026, based on assumed average prices of $65 per barrel for oil, $39 per barrel for NGL and $2.75 per thousand standard cubic feet for gas.

Seplat also reiterated its dividend policy, stating that its quarterly base dividend of 5.0 cents per share will be maintained for the year.

“With respect to dividends, our quarterly base dividend of USD 5.00/shr will be implemented for the year. Any cash dividend payable in excess of the base amount will be estimated with our half-year results and paid in two instalments with the 3Q and 4Q dividend declaration,” it added.

The company further disclosed that discussions are ongoing with its joint venture partner regarding a potential sale of a 10 per cent working interest in the SEPNU-NNPC joint venture.

However, Seplat said no agreement has been reached, and it would provide updates if there are further developments.

Nigeria’s electricity crisis may worsen in the coming weeks as gas suppliers halt supply to thermal power plants over an estimated N3.3tn debt owed by power generation companies, a development that could deepen the nationwide power shortage.

The Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, disclosed this during an interview on Fresh FM, monitored by our correspondent, warning that the mounting debt across the power value chain is pushing the sector toward a major crisis.

Her comments come amid worsening electricity supply across the country, with many Nigerians experiencing prolonged blackouts since the beginning of the year.

Data from the Nigerian Independent System Operator shows that power generation dropped below 4,000 megawatts in recent weeks, largely due to gas constraints affecting thermal power plants. As of Tuesday, the 11 power distribution companies were sharing only 3,053MW, making the reliable supply of electricity impossible across their franchise areas.

Electricity consumers, regardless of the supply bands they belong to, have continued to lament the situation, especially amid rising fuel prices and the severe heat.

Recently, NISO provided operational data illustrating the scale of the shortfall, noting that thermal power plants require an estimated 1,629.75 million standard cubic feet of gas per day to operate at optimal capacity. However, as of February 23, 2026, actual supply stood at about 692.00 mmscf per day—representing less than 43 per cent of the required volume.

As gas supply continues to decline, it was gathered that several power plants have shut down while the Transmission Company of Nigeria engages in load shedding, rationing the limited energy available among the DisCos. On their various platforms, the distribution companies have repeatedly appealed to customers, attributing the outages to gas shortages.

Speaking on the situation, Ogaji explained that the crisis stems from the failure of the Nigerian Bulk Electricity Trading Plc to fully pay for electricity generated by GenCos since the sector’s privatisation. According to her, the government currently owes generation companies about N6.8tn, with roughly 70 per cent of the amount relating to thermal plants.

She explained that about 70 per cent of whatever the government owes gas-fired power plants belongs to gas suppliers, meaning gas companies are owed about N3.3tn out of the N4.76tn tied to thermal generation.

Ogaji disclosed that gas suppliers have informed generation companies that they will no longer supply gas to power plants unless payments are made. She added that power generation companies have continued to keep records of all outstanding payments owed to them by the Nigerian Bulk Electricity Trading Plc.

“NBET is set up to buy power from GenCos and sell to DisCos. The aim is that as they buy power, they will pay in full, but since 2013 till today, they’ve never paid in full, so this debt is now N6.8tn,” she said.

Providing a breakdown of the debt, Ogaji stated that the liabilities have grown significantly over time.

“From 2015 to December 2024, the debt profile grew to N4tn. In each month of 2025, there is a shortfall of N200bn, so if you calculate N200bn times 12, that is N2.4tn, making the whole debt N6.4tn after December 2025. We’re already in March 2026. The debt grew to N6.6tn in January and N6.8tn in February. At the end of March, you need to add N200bn again to make it N7tn,” she said.

Ogaji added that a significant portion of the outstanding debt is owed to gas suppliers because thermal plants account for the majority of electricity generation on the national grid.

She said, “The generation companies have hydros, and we have thermal power plants. The thermal power plants are the ones that use gas. The hydro plants use water, so they do not owe gas suppliers.

“On the grid, we have 30 power plants; out of that, about 30 per cent are hydro now because Zungeru has added 700 MW, and there are other smaller hydro plants.

So, the remaining 70 per cent comes from gas.

“Therefore, for every N100 the thermal plants invoice NBET, N70 belongs to the gas suppliers. So, if we go by that ratio, out of the N6.8tn that I’m quoting, if we take out 70 per cent of that money that belongs to thermal plants, we need to work out another 70 per cent of that thermal 70 per cent, and that belongs to gas suppliers.”

Industry estimates based on this calculation show that about N3.3tn of the total debt is owed to gas producers, whose fuel powers most of Nigeria’s electricity generation.

The GenCo chief warned that the worsening debt crisis is directly responsible for the current electricity shortages. “Yes, it is 120 per cent correct to say that the debt is the reason why we are in darkness,” she said.

Ogaji added that gas producers are increasingly insisting on payment before supplying fuel to power plants.

“Gas is not available because the gas suppliers have told us that if we need gas, we need to put money on the ground to get gas in the pipe. We owed them a lot of money.

“The gas suppliers have really been very kind to us. They are the reason why the thermal plants are still generating power. But now, they have told us that if there’s no payment, there will be no gas for the thermal power plants,” she said.

According to Ogaji, the inability of generation companies to receive payments has also left them struggling to service bank loans obtained during the 2013 power sector privatisation.

“We owe gas suppliers, and we also owe lenders. You may have read in the papers that First Bank has been threatening to take over Egbin because of the acquisition loan,” she said.

She explained that GenCos’ financial burden has worsened significantly due to the sharp depreciation of the naira since the loans were obtained.

The Bank of Industry and the Plateau State Government have officially signed a Memorandum of Understanding for a N4bn matching fund in a strategic move to catalyse industrial growth and provide a lifeline to small businesses.

The agreement, according to a statement, was signed on Wednesday and aims to provide affordable, long-term financing to Micro, Small, and Medium Enterprises across all 17 local government areas of the state.

Under the “BOI-PLSG” initiative, both parties are contributing N2bn each to create a pool of capital accessible at single-digit interest rates.

Speaking at the signing ceremony in Jos, the Executive Governor, Caleb Manasseh Mutfwang, emphasised that this is more than just a financial transaction; it is a blueprint for state-wide prosperity.

“This partnership will improve the state’s contribution to the country’s GDP in alignment with the vision of President Bola Tinubu to build a $1 Trillion economy,” Mutfwang stated.

He highlighted that the fund is specifically designed to stimulate the local economy by prioritising high-impact demographics, adding that “the Plateau State Government and the Bank of Industry are contributing N2bn each to facilitate this partnership aimed at stimulating MSMEs in the state with a focus on women and youths.”

The Managing Director and Chief Executive Officer of the Bank of Industry, Dr Olasupo Olusi, reiterated the bank’s long-standing commitment to the region, noting that Plateau has become a hub for successful interventions over the last six years.

“The Bank has maintained an active presence in Plateau State since 2020, disbursing N8.46 bn to 257 enterprises, supporting Micro, Small and Medium Enterprises as well as Large Enterprises across the state,” Olusi remarked.

He further commended the state’s administrative reforms, which have made Plateau an increasingly attractive destination for institutional investment, noting that “Plateau State’s improved ranking on the Ease of Doing Business index, according to the Presidential Enabling Business Environment Council’s subnational report, reflects deliberate reforms aimed at creating a conducive environment for investment and private sector participation.”

The N4bn fund is structured to ensure sustainability and manageable repayment for beneficiaries, with a single obligor limit not exceeding N100m, a maximum tenor of five years, and a moratorium period of up to 12 months from disbursement. Beyond the cash injection, the MoU includes a robust capacity-building component in collaboration with accredited Entrepreneurship Development Centres.

This programme will focus on value addition in sectors such as poultry, block making, oil and rice milling, agro-mechanisation, packaging, pharmaceuticals, and bakery services. The partnership leverages the BOI’s 65-year history of development finance to ensure that MSMEs in Plateau State do not just receive capital but also the technical expertise required to scale sustainably through the establishment of specialised product clusters.