Seplat Energy’s oil output declines on drilling campaign delays

Seplat Energy Plc says its total oil production fell by 4.7 percent to 48,407 barrels of oil equivalent per day in the first half of this year owing to drilling campaign delays.  

The Lagos-based oil firm said its working interest liquids production in three oil blocks, OMLs 4, 38, and 41, declined 7.5 percent to 15,286 bopd.

“The reduction in production was driven by delays in executing the previous years’ drilling programme, which were expected to arrest the impact of normal production decline,” it said in its unaudited financial statements. “Drilling recommenced in Q4 2023, and the western asset is the focus of our drilling operations in 2024, accounting for nine of the planned thirteen wells.”

The 2024 drilling programme is expected to address normal production decline and, along with the completion of maintenance activities, support long-term production levels from the assets, according to the company.

Seplat said: “In our 3M 2024 results, we reported completion of one well (Ovhor-21) from our 2024 drilling program and two wells (Okporhuru-9 and Sapele-37) from our 2023 drilling program. Ovhor-21 (which was drilled in Q1) is now onstream and producing at a gross rate of 2,300 bopd.

“In the second quarter of the year, we completed the drilling of three wells (Ovhor-22, Abiala W/O and Sapele-38) across our Western Asset and Elcrest locations. Ovhor-22 has been hooked up and is currently undergoing testing for initial production performance estimation while the completion is currently being installed at Sapele-38. Initial production from the Abiala W/O is expected during 3Q 2024.

“The last well due to be completed during the second quarter, Oben-55 is now scheduled to be completed in 3Q 2024. Alongside Oben-55, during the second quarter we also commenced drilling at two further well locations; Ovhor-23, and Oben-54. These wells are on track to complete during the third quarter along with Abiala-2 and Ovhor-24, which are due to commence drilling during 3Q 2024. To complete our 2024 drilling program, two wells at Oben and two wells at Gbetiokun are planned for the fourth quarter. All wells are planned to support production operations.”