By Sebastine Obasi
Seplat Petroleum Development Company Plc has rekindled Nigeria’s hope for improved gas production with the expected delivery of the ANOH Gas project in the first half of 2022, HI’2022.
Speaking at the just released financial results of Seplat, Mr. Roger Brown, the Chief Executive Officer of the Company, said: “2020 was a challenging year for the Company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.
“From the $330 million of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100 million of debt, further deleveraging the balance sheet. Despite seeing the lowest oil prices in our 10-year history, we have continued to honour our commitment to shareholders of a regular income stream on their investment, by maintaining a total dividend of $0.10 per share for the year.”
The Seplat CEO explained: “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population. Seplat is leading Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity and we believe this will provide the necessary baseload for a functioning electricity grid that will allow renewable energy to take its place, as we see in the developed world, which in large parts is still fueled by coal.
The energy transition in Nigeria must balance both the environmental and the social agenda. “Our flagship ANOH project, with the Nigerian Gas Company, is now fully funded and we have made excellent progress in difficult times, with major gas processing units expected to arrive in Nigeria in quarter 3, Q3 2021, installation to commence before the end of the year, mechanical completion and pre-commissioning in Q1 2022 and first gas flowing to customers before the end of H1 2022, at a lower expected cost of up to $650 million.”
“We remain committed to providing shared value for all of our stakeholders. During the year, with our Government partners, we provided medical beds and other palliatives to our communities and we have committed to constructing a 200-bed infectious diseases hospital. Seplat continues to focus on employment opportunities for communities, education, healthcare and knowledge transfer and local capacity development,” Brown added. Explaining the operational highlights of the company, Brown stated there was working-interest production within guidance at 51,183 barrels of oil equivalent per day, boepd, despite demand fall and OPEC+ quotas, as liquids production reached 33,714 bopd, while gas production was in the region of 101 million standard cubic feet, MMscfd. According to the CEO, Eland oil mining lease, OML40/Ubima assets produced 8,855 bopd, 26.3 percent of Group liquid volumes at a low unit cost of production of $8.90/boe, with cost-cutting initiatives ongoing. He also stated that the company drilled/completed nine wells and brought eight onstream in 2020.