Seplat Energy Plc has finalised the conversion of its operated onshore assets to Nigeria’s Petroleum Industry Act (PIA) fiscal regime, officially exiting the long-standing Petroleum Profit Tax system in a move expected to enhance cash flow visibility and boost long-term profitability.
Seplat’s subsidiaries, Seplat West Limited and Seplat East Onshore Limited, have taken over assets formerly held under Oil Mining Leases 4, 38, 41, and 53. In the first nine months of 2025, these assets produced an average of 42,591 barrels of oil equivalent per day, making up about 31 per cent of the company’s total output.
The Petroleum Industry Act, enacted in 2021, is a major revamp of Nigeria’s oil and gas regulatory and fiscal systems. It replaces the Petroleum Profit Tax regime, which operators had widely criticised for its steep tax rates, limited cost recovery options, and discouragement of investment.
Under the PIA framework, upstream operators move from paying Petroleum Profit Tax to a mix of Hydrocarbon Tax and Companies Income Tax, along with updated royalty structures. This new setup aims to reduce the overall tax load, improve cost recovery, and offer more certainty for planning capital and making investment choices.
Seplat mentioned that the anticipated impact of the conversion was already factored into its medium-term plans shared during its Capital Markets Day in September 2025. The company also noted that the PIA framework encourages more investment, boosts production growth, and enhances operational efficiency, all in line with its overall strategic goals.
After signing the conversion contracts in February 2023, Seplat and its joint venture partners wrapped up all technical and regulatory steps with the Nigerian Upstream Petroleum Regulatory Commission. They’ve now been issued new Petroleum Mining Lease and Petroleum Prospecting Licence numbers, with operations under the PIA set to kick off on January 1, 2026, pending regulatory guidance.
Commenting on the development, Seplat Energy Chief Executive Officer Roger Brown said the conversion marked a significant milestone for the company.
“Conversion to the PIA fiscal regime has been an important focus for Seplat and we are pleased to have delivered, alongside our joint venture partners, the conversion of our onshore operated assets within the timeline communicated to the market,” Brown said.
He added that the transition creates enhanced value opportunities and provides a clearer path to improved profitability and cash flow margins across the company’s onshore operations.
Seplat also reiterated its intention to convert its offshore assets to the PIA framework by 2027, as Nigeria continues efforts to reposition its oil and gas sector as competitive and investment-friendly amid tightening global capital flows.
From a market perspective, the shift is expected to improve earnings quality, reduce fiscal uncertainty and strengthen investor confidence, particularly as operators and lenders increasingly prioritise regulatory clarity and predictable returns.
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