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Seplat Energy Calls for Development of Oil, Gas Assets in Nigeria
Seplat Energy Calls for Development of Oil, Gas Assets in Nigeria
Seplat Energy Calls for Development of Oil, Gas Assets in Nigeria
– By Ikenna Omeje

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Seplat Energy Calls for Development of Oil, Gas Assets in Nigeria

…Says collaboration with communities is key to growth

Seplat Energy PLC, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has emphasized the need for prudent management of oil and gas assets to drive growth in Nigeria’s energy sector. The company highlighted the importance of expanding the sector through effective asset management.

During the Centre for Petroleum Information (CPI) Petroleum Policy Roundtable (PPR XXIV) held in Lagos, Seplat Energy CEO Mr. Roger Brown delivered a keynote titled: ‘Managing Inherited Assets: Rising to the Challenge.’ The roundtable, themed ‘Sustainably Powering Forward the Nigerian Petroleum Industry – As IOCs Back Pedal,’ saw participation from oil and gas operators, service providers, government officials, industry observers, and advisors.

Brown emphasized the importance of ensuring cash generation while driving growth and development of inherited oil and gas assets. Drawing from Seplat Energy’s 14-year experience, he noted that production had increased across its portfolio of acquired assets, which has been instrumental in the company’s rise to becoming Nigeria’s leading independent energy supplier.

“At Seplat Energy, 2P reserves rose 9% Year-on-Year to 478 MMboe with a 47%:53% split between liquids and gas,” Brown stated. “The increase in reserves was due to the discovery of new reservoirs in OML 40, booking of volumes from the Abiala marginal field, and conversion of 2C resources to 2P in OML 53. 2P + 2C reserves and resources stood at 540 Mmboe at the end of 2023.”

He added, “Post-IPO, our investment in gas infrastructure has yielded fruits with the oil and gas production mix now at 59% and 41% respectively at the end of Full-Year 2023, from 83% and 17% pre-IPO. Investments in alternative evacuation routes have helped stabilize production at over 44.0 kboepd. Aggregate production has grown at a CAGR of 5.4% post-IPO.”

Brown highlighted Seplat Energy’s strong financial performance and contributions to Nigeria, stating, “Our tax contribution to Nigeria stands at $2bn, with a total of $2.8bn since the company’s incorporation. We have invested $1.6bn in capex in Nigeria, with a total of $2bn since incorporation. Additionally, we raised $535m at IPO and have paid $575m in total dividends.”

He noted that Seplat Energy’s business continues to generate strong cash flows, reflected in its robust Free Cash Flow (FCF) and Net Cash from Operations (NCFO) generation. Post-IPO, the company generated $1.7bn in FCF, with an average annual FCF of $264m, excluding significant capex investments in 2014 and 2015.

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Roger Brown, Seplat Energy
Roger Brown, Seplat Energy

Brown also stressed the importance of maintaining a good reputation with creditors, stating, “Seplat Energy continues to maintain a strong reputation in the debt market. The confidence investors have in our ability to repay debt is reflected in the $2.6bn debt repayment we have made since 2014, excluding interest payments.”

He called for strong collaboration between operators and their host communities, stressing that working closely with these communities is essential for the future success of acquired assets. “As a matter of importance, the communities where you operate should grow as the company grows, as well as the nation at large,” Brown concluded.

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