May 26, 2024

Seplat redesigns business model to improve gas to power, to deliver ANOH Gas phase-1 in Q4, 2023

 

Oredola Adeola

 

The Board and Management of Seplat Energy Plc have assured the commitment of the company towards commissioning the ANOH Gas processing plant before the end of 2023, which will also be structured towards improving gas to power, and to enhance electricity access in Nigeria.

 

Basil Omiyi, Chairman, Board of Directors, Seplat Energy Plc, made this known while addressing shareholders during the company’s 10th Annual General Meeting (AGM) held in Lagos via Zoom on Wednesday.

 

EnergyDay’s check showed that the Phase One 300 million standard cubic feet (mscf) of the ANOH midstream gas processing plant, is being built by ANOH Gas Processing Company Limited (AGPC) , which is an IJV owned equally between Seplat Energy and the Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC),

 

Speaking on the project, Omiyi said that the proposed commissioning of the gas infrastructure suffered delays due to third-party.

 

He said, “The gas plant will add about 300 mscf of gas into the market at the first phase, displacing the country’s reliance on diesel.

 

“Priority will also be given to gas to power to enhance gas supply to power generating plants within the corridor. We are committed to providing gas which is Nigeria’s transition fuel amidst net zero targets.

 

“In terms of mechanical installation of all the equipment, we are done 100 percent with the installation and in terms of mechanical completion, we are currently at 95 per cent.

 

“We are looking at the nitty-gritties that needed to be put in place to ensure that ANOH gas plant is commissioned in Q4 this year.

 

“SPDC is also on course to deliver the two additional gas lines in this quarter as we speak. So all the different elements are working together, and we are assuring shareholders that we will bring ANOH gas plant by Q4 2023,” Omiyi said.

 

Highlighting the company’s commitment to gas production, he said, “We already have a completely new business model to use gas to support the market, and power sector and to also focus on renewable energy. This is what we call pillar 3 of our business focus.

 

“We will be supporting renewable energy in such a way that renewable energy on its own today cannot provide all round clock power.

 

“So there has to be gas that provides that and when the renewable energy is available, and you use it, so you reduce the amount of carbon.

 

Omiyi emphasised that Seplat has strengthened its approach to understanding and evaluating climate risk re-designated as a key risk to the company’s business.

 

He said, “We have adopted a new Board-approved Climate Change Policy and have advanced a major component of our decarbonisation strategy.

 

“This eliminates routine flaring by the end of 2024 through our Flares Out initiative, which is six years ahead of Nigerian regulatory requirements and the World Bank’s initiative to achieve Zero Routine Flaring by 2030.

 

“Seplat Energy’s Board Chairman further hinted that the company’s oil business started the year on a strong footing, with working interest production of 29,078 barrels of oil per day (bopd) and 30,338bopd in Q1-2022 and Q2-2022 respectively.

 

 

He said, “However, in the third quarter, production was impacted negatively by evacuation problems at the Forcados Oil Terminal (FOT), not being available for a period.

 

 

“The much-delayed launch of the Amukpe-Escravos Pipeline (AEP) provided some relief as we were able to flow c.10,100bopd (working interest production) during the period.

 

 

“The AEP is now a major export route for our largest assets at OMLs 4, 38, and 41. As a result, our reliance on the Trans Forcados Pipeline and FOT is significantly lower, reducing risks of downtime while providing a solid base for stronger export volumes and revenues,” Omiyi said.

 

 

Mr. Samson Ezugworie, Seplat’s Chief Operating Officer, on his part said, the company is exploring ways to become a leading supplier of lower carbon and renewable energy.

 

According to him “We are exploring ways to expand into these new and exciting markets.

 

He said, “The first and most obvious option is to provide more gas for Nigeria’s power sector, to reduce the country’s reliance on imported diesel fuel, which is highly carbon intensive and a drain on the nation’s wealth.”

 

Ezugworie further noted that the company is committed to sustaining the Q1 2023 performance and surpassing the level of performance in oil and gas production and financial performance in order to have a productive outing in 2023.

 

 

He further noted that Seplat Energy will overcome the pipeline outages and terminals challenges that impacted the company’s production performance in Q3 2022.