Key projects to go live by H1, 2022
Sopuruchi Onwuka
Indigenous independent energy firm, Seplat Energy Plc, has declared its plan to drive energy transition that would address the prevailing supply challenges in the domestic market while making returns to its shareholders.
Managing Director, Mr Roger Brown, stated in the company’s interim operations report for the first three quarters of the year that the company’s new name and logo would represent a portfolio diversification process that would address immediate energy supply needs of Nigeria.
He stated that the company would after its rebranding focus on building out and executing the energy transition that is right for Nigeria.
“A strong step forward will be when we bring on stream the ANOH project next year delivering more transition gas to an energy poor market, over reliant on expensive, high carbon-emitting electricity generated from small-scale diesel and PMS generators, he pointed out.
Mr Brown explained that the company’s three-pillar strategy is designed to ensure “we balance carbon emission reduction with the essential social agenda for undeniably the most under-electrified, youngest and fastest growing population on earth.”
On the company’s operations performance for the first three quarters of the year, Seplat posted 18.7 percent growth in revenue year on year to N182.7 billion, with corresponding 299 percent in operating profit which came to N62.6 billion.
The unaudited results for the nine months ended 30 September 2021 also indicated that earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29.6 percent to N105.7 billion year on year from N71.9 billion in 2020.
Mr Brown attributed the strong performance on rising production following the return of Forcados Oil Terminal (FOT), projecting that the company’s oil and gas output would grow from current 33,000 barrels of oil per day in October to about 50,000 barrels of oil equivalents per day for the year.
He stated that production growth would be supported from new wells at Gbetiokun field and would be further driven with planned drilling of the Sibiri prospect on OML40.
The Oracle Today reports that drilling of new wells might come at significant cost reduction following Seplat’s acquisition of four rigs of Cardinal Drilling Services as part of a debt settlement deal with Access bank Plc.
“Our business model is robust, despite setbacks in the third quarter, thanks to the prudent and flexible approach we have taken to managing the business. With an increased focus on efficiency in our operations, improving uptime by opening up the Amukpe to Escravos Pipeline and driving further cost reduction across our portfolio, this will provide the bedrock allowing us to operate effectively in fluctuating commodity prices and generate returns for shareholders. I am optimistic that the coming year will be much stronger, with many of the problems of the past put behind us.
“After we set out our future strategy in July’s Capital Markets Day and launched our new corporate name of Seplat Energy plc, complete with its new branding, we are now focusing on building out and executing the energy transition that is right for Nigeria. A strong step forward will be when we bring on stream the ANOH project next year delivering more transition gas to an energy poor market, over reliant on expensive, high carbon-emitting electricity generated from small-scale diesel and PMS generators. Our three-pillar strategy is designed to ensure we balance carbon emission reduction with the essential social agenda for undeniably the most under-electrified, youngest and fastest growing population on earth,” Mr Brown declared in the statement.
Updated outlook for 2021 business year posted by the company shows that Seplat’s expected production narrowed to 48-50 kboepd for full year, subject to market conditions; the company commenced commissioning of its Amukpe-Escravos Pipeline (AEP) with a view to flow first oil in December; the company’s updated capital expenditure (capex) for the full year is now expected to be $167 million; and its ANOH gas project remains on track for first gas in the first half of 2022.
