Seplat Petroleum Development Company Plc has said it is now focused on providing multiple export routes to mitigate downtime and revenue loss.
The Chairman of the company, Dr. ABC Orjiakor, told The Point on the sidelines of the company’s 2017 Annual General Meeting in Lagos, over the weekend, that this followed repeated disruptions to the Trans-Forcados export route.
He however, pledged to sustain expansion of its Gas as part of measures to impact positively on its Group Revenue, adding that gas business contributed $124 million, about 27 per cent to the company’s total revenue for the financial year ended December 31,
2017.
According to him, Seplat is committed to its ANOH Gas Plant Project in Oil Mining Lease, because of its contribution to the economy, particularly when the price is good and demand is high.
Commenting on the issues with the Nigerian Content Development and Monitoring Board, Seplat’s Chief Executive Officer, Austin Avuru, explained that it was just an administrative matter that would be sorted out.
Seplat, which was impacted by disruptions to its export routes, resulting in an extended majeure at the Forcados terminal, however, announced a return to full year profitability in 2017.
On the company’s return to profitability, Orjiako emphasised the contribution of gas to its overall growth.
He said, “I am pleased to report that in early 2017, we made good progress, as we reviewed our vision, mission and strategy towards refocusing the company on our key priorities, to de-risk future cash flows through diversification of oil export routes, and invest in and scale up our domestic gas business.
“We equally maintained a liquidity buffer while continuing to reduce debt; keep tight financial control (with discretion in spending) and position Seplat with a stabilised platform for sustainable growth, even in a harsh operating environment. Our strategies to diversify and grow our income through the expansion of our gas business continue to gain
momentum.”
The company completed and commissioned the phase 11 expansion of its Oben Gas processing hub, which added 225 MMscfd of processing capacity that takes total capacity at the Oben
Plant.
