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Seplat Petroleum Development Company Plc on Wednesday June 6, 2018 said it’s committed to the expansion of its gas business, which contributed $124 million, that’s 27 percent to the company total revenue for the financial year ended December 31, 2017.
Dr ABC Orjiakor chairman of the company disclosed this to financial journalist at the company post 5th Annual General Meeting (AGM) in Lagos.
He pointed out that Seplat is committed to its ANOH Gas Plant Project in Oil Mining Lease (OML) 53, because of its contribution to the economy. Particularly when the price is good and demand is high. Commenting on the issues with Nigerian Content Development and Monitoring Board (NCDMB), Seplat Chief Executive Officer Austin Avuru explained that it’s just administrative matter that will be sorted out, adding that they will be having a meeting with NCDMB tomorrow June 7, 2018.
Seplat which was impacted by disruptions to its export routes resulting in an extended force majeoure at the Forcados terminal, however announced a return to full year profitability in 2017. Early in 2017, the company completed and commissioned the phase 11 expansion of its oben gas processing hub, which added 225 MMscfd of processing capacity that takes total capacity at the Oben plant to 465 MMscfd. Together with 60 MMscfd capacity at the Sapele plant. Seplat now operates 525 MMscfd of gross gas processing capacity.
On the company’s return to profitability, Orjiako, emphasized the contribution of gas to overall growth and profitability. “I am pleased to report that in early 2017 we made good progress as we reviewed our vision, mission and strategy towards refocusing the company on our key priorities, to de-risk future cash flows through diversification of oil export routes; invest in and scale up our domestic gas business; maintain a liquidity buffer while continuing to reduce debt; keep tight financial control with discretion in spending and position Seplat with a stabilized platform for sustainable growth even in a harsh operating environment. Our strategy to diversify and grow our sources of income through the expansion of our gas business continue to gain momentum”
Speaking on the company performance during the year under consideration, Austin Avuru added that following repeated disruptions to the TransForcados export route, Seplat is now focused on providing multiple export routes to mitigate downtime and revenue loss. “In 2017, the company successfully completed repairs and upgrades on two jetties at the Warri refinery that will enable sustained exports of 30,000 bopd up from 15,000 bopd”.
He said by third quarter of 2018, the Amukpe-Escravos 160,000 bopd capacity pipeline is set to come on stream thus providing a third export option for liquids production at OMLs 4, 38 and 41 which presently accounts for around 90 percent of Seplat’s total liquids production mix.
