Roger Brown, CEO of London-listed Seplat Energy, In an interview with the Financial Times, asserts that Nigerian indigenous oil companies are better positioned than international oil companies (IOCs) to invest in and enhance the nation’s oil production. Following Seplat’s landmark $1.28 billion acquisition of ExxonMobil’s onshore assets, Brown views this transition to local ownership as pivotal for Nigeria’s energy sector.
After nearly three years of negotiations, the ExxonMobil deal, finalized in December 2024, grants Seplat access to 11 onshore oil blocks, 48 oil and gas fields, three export terminals, and five gas processing plants. Seplat aims to increase production from 50,000 barrels per day to 120,000 b/d by September 2025. Brown emphasized, “If you’re an IOC, you’re looking all around the world where to put your money next. Whereas the indigenous players, by and large, are only looking at Nigeria.” This local focus, he argues, ensures that Nigerian firms are more committed to investing and maximizing production from their assets—an area where international majors have recently lagged.
Seplat’s acquisition is part of a broader trend of IOCs divesting from onshore assets in Nigeria, with indigenous companies stepping in to fill the void. Under President Bola Tinubu’s administration, several significant transactions have received approval:
Oando Plc’s Acquisition of NAOC: In September 2023, Oando agreed to acquire a 100% stake in Nigerian Agip Oil Company (NAOC) from Italy’s Eni. This deal, valued at over $500 million, was completed in July 2024, increasing Oando’s participating interests in several oil mining leases from 20% to 40%.
Equinor’s Divestment to Project Odinmim: Norwegian energy firm Equinor sold its 20% stake in the Agbami oil field to Project Odinmim. The transaction, estimated at around $1 billion, was finalized in mid-2024
Shell’s Asset Sale to Renaissance: After initial regulatory hurdles, Shell received approval in December 2024 to sell its onshore subsidiary, Shell Petroleum Development Company of Nigeria, to the local consortium Renaissance Africa Energy for $1.3 billion
These approvals signify a strategic shift, with indigenous companies increasingly taking over assets from IOCs to enhance local participation and boost production in Nigeria’s oil and gas industry. Brown believes that this trend will lead to increased investments in the sector, as local firms are more inclined to focus their resources domestically.
Despite the opportunities, Seplat’s journey has faced challenges. The ExxonMobil deal encountered regulatory obstacles under former President Muhammadu Buhari’s administration, and Brown himself faced a temporary visa revocation over unfounded allegations. However, under President Tinubu, the investment climate appears more favorable. The administration has approved several pending oil deals and restructured the leadership of the state oil company, NNPC, appointing Seplat’s co-founder, Austin Avuru, to the board.
Looking ahead, Brown plans to expand Seplat’s output beyond 110,000 barrels of oil equivalent per day, increase domestic gas supply, and initiate LNG exports. He asserts, “Indigenous ownership of energy resources is clearly the way forward for Nigeria.”
