* Says it hit jackpot with MPNU acquisition

Sopuruchi Onwuka

Seplat Energy Plc has declared commitment to strong corporate governance standards, inorganic asset acquisition and rapid capacity development in order remain in the path of sustainable growth.

The company also pledged to consolidate on values and strategies laid down by founding leaders.

Chief Operating Officer (COO), Samson Ezugworie, explained to delegates at the ongoing Africa Oil Week (AOW) that Seplat would not only champion realization of production mandate on the industry but also stimulate growth in full chain resource extraction.

He commended the government on permitting voluntary exit of some international oil companies from onshore and shallow water terrains, saying the conclusion of the divestment deals unleashed indigenous capacity in revamping neglected oilfields and increasing output from the divested assets.

By eventually approving the divestment deals, Seplat said, government has gained more economic values from the acquired assets and arrested production downslide.

Ezugworie featured in the opening day plenary Fireside Chat attended by all delegates at the conference. The Fireside Chat held just before before President John Dramani Mahama of Ghana delivered his opening presentation to declare the event open.

Ezugworie pointed out that Seplat has not just grown in size but also massed up strong operating capacity to drive highly diversified portfolios and grow production.

Founding leaders of the company, he said, laid the foundation for strong corporate governance standards and evolved the inorganic growth model that optimize asset acquisition opportunities.

In commenting on Seplat’s growth journey, Ezugworie stated that whereas the company has always pursued accretive asset growth, the acquisition of Mobil Producing Nigeria Unlimited’s (MPNU’s) assets proved transformational, challenging and rewarding.

He explained that the MPNU acquisition presented Seplat the opportunity for low risk and higher efficient offshore operations at a time onshore operations were seriously challenged with above ground risks.

He said Seplat inherited a well structured company with strong staff strength and significant hydrocarbon reserves. He pointed out that Seplat currently sees huge huge organic reserves growth opportunities in the acquired MPNU assets.

In describing the storm weathered by parties in the $1.3 billion divestment deal, Ezugworie said Seplat’s tenacious pursuit of the assets tested its governance records, proved it’s credibility with lenders, confirmed shareholders’ trust, and validated the power of engagement.

He pointed out that eventual closure of the divestment deal indicated government’s trust in the company, resilience of Seplat and confidence of shareholders.

He expressed excitement that the company’s indigenous management and workforce have justified the acquisition by increasing output by over 17 percent, revamping aging facilities and configuring inherited gas processing facilities to start supplying LPG to domestic market.

Insisting that it would not be in national interest to try holding oil multinationals from divesting, Ezugworie said such moves would lead to decline in both investments and production.

With the acquisition, he said, Seplat has moved in with great verve to optimize performance of existing assets by introducing a mix of upstream and midstream activity that also extract full gas value.

He said the company is now intensive in gas projects, adding that the highly expected ANOH gas projects is ready and would come online as soon as the OB3 pipeline is completed.

In the meantime, he said, Seplat would continue expansion of capacity at its newly acquired gas assets in the shallow water where output is projected to rise from 120 million standard cubic feet (MMscf) per day to 480 MMscf per day.

Ezugworie also disclosed that the company has bigger business ambition with additional four gas projects lined for execution in the medium term.

He said Seplat is deeply committed to government’s agenda for production boost.

According to him, new leadership in the industry, better relationship and partnership with the Nigerian National Petroleum Company (NNPC) Limited, and enhanced operating environment will enable Seplat boost output in response to government’s call for additional barrels.

Ezugworie said Seplat would resume integrity work program in the newly acquired shallow water assets and bring back significant number of idle wells in the on production.

The company, according to Ezugworie, is also working on pipeline projects to channel part of the 240 MMscf per day from OSO field to the Nigeria LNG Limited’s liquefaction plants in Rivers State.

Oracle Intelligence reports that this would be the first time gas from assets developed by ExxonMobil in Nigeria would be shipped to NLNG’s plants.

And with ANOH gas coming online in a month’s time, he noted, Seplat would also be pushing more gas into the domestic gas market.

Gas from the ANOH project, Ezugworie said, would consolidate the company’s leadership in domestic gas supply.