To Support Nigeria’s Industrialisation, SEPLAT Shifts Focus To Gas Projects

SEPLAT Petroleum Development Company Plc has keyed into the Federal Government’s goal of using the country’s proven gas reserves to increase economic activities for gas-based industrialisation of the country.

The Nigerian independent energy company in its outlook for 2021, targets a full-year capital expenditure of $150m with a focus on gas projects and an exploration well to meet reserves replacement targets.

It stated, “We have significant cash resources and will continue to manage our finances prudently in 2021, expecting to invest $150m of capital expenditure across the full year.

“We remain confident that our ongoing cost-cutting initiatives and prudent management of cash will enable further reductions in debt, whilst supporting dividend payments and investment for growth.

“Following its successful funding, the completion of the ANOH project remains a major priority. Although we expect some COVID-19 related delays to push completion into early 2022, following a cost optimisation programme we now expect the project to cost no more than $650m, substantially below the $700m budget previously stated at Final Investment Decision.”

The Company also announced $530.5m revenue for the 2020 financial year.

The Chief Executive Officer, SEPLAT, Roger Brown commenting on the company’s performance for 2020 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 $330m of cash generated from operations, we have increased our capital investment, invested in ANOH and voluntarily paid down $100m 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.”

According to him, SEPLAT support and is ready to lead Nigeria’s transition away from spending scarce foreign currency on imported, expensive, high-emission diesel-generated electricity.

He said, “Gas is the lower-carbon feedstock for affordable electricity for Nigeria’s young and rapidly-growing population and we believe this will provide the necessary base load 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 Q3 2021.”