Seplat Petroleum Development Company Plc has identified the Assa North-Ohaji South (ANOH) gas processing project as very bankable and capable of boosting Nigeria’s domestic gas supply significantly.L – R Shows Roger Brown, Chief Finance Officer, SEPLAT Petroleum Development Co Plc; Oscar N. Onyema, OON, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Austin Avuru, Chief Executive Officer, SEPLAT Petroleum Development Co Plc; Effiong Okon, Operations Director, SEPLAT Petroleum Development Co Plc and Chioma Nwachukwu, General Manager, External Affairs & Corporate Communications, SEPLAT Petroleum Development Co Plc during a Closing Gong Ceremony in commemoration of Seplat Capital Markets Day at the Exchange today in Lagos.
“With the ANOH project, Seplat aims to be the largest supplier of gas to the domestic market.”
A Seplat team led by the Company’s Chief Executive, Mr. Austin Avuru, gave an in-depth presentation on the company’s gas business to investors, sector and financial analysts during its 2019 Capital Markets Day at the Nigeria Stock Exchange.
During his presentation of Seplat Petroleum Development Company Plc Gas Business, Avuru highlighted that the ANOH gas processing plant will be the first stand-alone midstream joint venture business between the Nigerian National petroleum Corporation (NNPC) and a company in the private sector.
The Seplat CEO added that: “By the time we commission the ANOH project, we will be able to produce 850 Mscfd.
“Overall, the gas business was not attractive in 2010 and some years after. Seplat however took a conscious decision to invest in the gas business upon the price of gas inching up as ‘willing buyer willing seller’ commercial terms became possible. The company is uniquely situated within existing gas pipeline network, and therefore leveraged on this to significantly expand its Oben gas plant. The revenues from the expanded Oben gas plant have been impressive motivating the company to seek further investment in gas.”
He explained that the company’s gas is for the domestic market, quipping that Nigeria has a notable population which is projected to continue to grow to 450 million people by 2050. “This will represent highest population growth in Africa, and Nigeria being the third most populated country globally behind China and India. Evidently, the current capacity for electricity generation cannot be adequate,” he said.
“Thus, Seplat has strategically positioned itself ahead of that opportunity and with projected demand for gas and improved fiscal regime; there is a compelling case for gas. Displacing diesel in Nigeria’s environment is a priority for the company. Currently Seplat gas accounts for 30 to 35 per cent of power generated and the company is determined to continue the lead in this area.”
“For Seplat, our gas business is a national project. As a result, facilitating gas to power and gas to industry have become critical for the company.
L – R Shows Jude Chiemeka, Divisional Head, Listing Business, The Nigerian Stock Exchange (NSE); Oscar N. Onyema, OON, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Austin Avuru, Chief Executive Officer, SEPLAT Petroleum Development Co Plc and Roger Brown, Chief Finance Officer, SEPLAT Petroleum Development Co Plc during Seplat Capital Markets Day at the Exchange today in Lagos.
In a presentation titled ‘Growth ANOH’ by Ms Yetunde Taiwo, the managing director of Anoh Gas Processing Company (AGPC on the floor of the NSE, provided the investing community with comprehensive information on the company’s existing gas business, market outlook and anticipated ANOH growth trajectory. According to her the ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the Nigerian Gas Company. AGPC shall develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.
Ms Taiwo pointed out that the ANOH project development overview, contracting and Local Content strategy, regulatory compliance, the commercial structure, community management and project execution schedule, amongst others.
The Project commercial highlights showed balancing upstream and downstream dynamics to manage risk and create value for AGPC with WET GAS SALES of 275 mmscid upstream wet gas production with agreed formula of 35% dry gas sales price, 50%condensate sales price, and 50% LPG sales price which resultant to average wet gas sales price expected to be around US$2.3/Mscf
Seplat’s chief financial officer, Roger Brown’s Investor Relations team organised the forum to apprise investors of the company’s gas business with emphasis on the ANOH gas processing project.
The CFO, Roger Brown provided highlights on the funding structure showing that the company proactively is addressing debt investors and funding considerations upfront to ensure success of the project. He added that the company has received significant show of interest with major key stakeholders, both from international and local banks, amongst others.
Responding to some questions and comments from members of the audience, Chief executive officer said the company focuses on its foresight with gas business since 2010.
The CEO in his closing remarks stated that: “The market gas price remains strong and the long term outlook for gas in Nigeria and the regional market remain strong. Seplat is participating in major national development with its gas business, and the company is delighted to, through its gas business, deliver major national priority while earning revenue.”
He assure the host community that flaring of gas will soon end as the company is determine to end flare
Avuru said seplat business shall continue to break ground achieving operational and financial success adding that market prices remain strong, long term outlook for gas in Nigeria and the regional market remains positive.
He also said that seplat’s access to gas infrastructure positions it to be the leading long term gas supplier of choice for Nigeria. Conventional diesel off-grid power generation is expected to be displaced, presenting seplat gas business with a significant opportunity, added he.