- constructs alternative crude oil evacuation routes
By Chioma Obinagwam
Nigeria’s leading indigenous oil and gas exploration and production company, Seplat Petroleum Development company has said that its gas business exceeded the US$100 million (N30.55 billion at N305.45 interbank exchange rate) revenue milestone in its financial year ended December 31, 2016.
Extracts from the result showed that gas revenue increased significantly year on year to US$105.5 million compared to the US$76.9 millionrecorded in the corresponding period of 2015.
The growth, the company disclosed, was achieved on the heels of a full year 150 MMscfd Oben gas processing facility installed mid-tier 2015 that doubled plant processing capacity to 300 MMscfd.
Chief Executive Officer (CEO) of the company, Austin Avuru said: “In addition to a difficult global oil market backdrop, our business has had to contend with unprecedented operational challenges due to interruptions and these are reflected in our full year results. Whilst force majeure at the Forcados terminal has materially affected our oil production, I am particularly pleased to see the growth in our gas business which in 2016 exceeded the US$100 million revenue milestone demonstrating its robustness and providing a solid base from which to grow. It is easy to forget that in 2013, gas revenue were US$18 million, which shows how far we have come.”
The CEO further disclosed that in the group’s resolve to boost crude oil revenue, diversify production in addition to derisking its routes to market, it is supporting the Federal Government (FG) in the completion of the Amukpe to Escravos pipeline.
He added that it would serve as a third export route, following the completion of the second alternative export route for crude oil production from OMLs 4, 38, and 41 is sent via the company’s own 100,000bopd capacity pipelines to available storage tanks at the Warri refinery.
“Alongside this, we are collaborating and supporting government on completion of the Amukpe to Escravos pipeline that will offer a third export route through the Escravos terminal. With multiple export routes expected to be operational during the second half of 2017, we will have significantly de-risked our routes to market,” he said.
Reacting to the issue of dividend payout, Chairman of the company, ABC Orjiako said that the company was focused on strengthening the balance sheet of the company in the interim, having gone through the rigours of a challenging investment climate.
“Dividend is one of the things we promised our shareholders. Capital appreciation is also one of the things we promised them. We are focused on strengthening the balance sheet of the company. We believe we will pay dividend when the time is ripe,” he stated.
Looking into that the future, Avuru noted that its immediate priority is to increase exports via the Warri refinery jetty to a gross average level of 30,000 bopd.