Seplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply

Must Read

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Seplat Petroleum Development Company Plc’s proposed $700 million Assa North Ohaji South (ANOH) gas and condensate field project, at the conclusion, is presumed to provide significantly in addressing Nigeria’s deficit in thermic power delivery.

This project straddles OML 53 (seplat 40 per cent working interest and operator) and OML 21 (Shell JV).

In a presentation titled ‘Stability, Performance, Growth’ the team of three presenters provided the audience with comprehensive information on the company’s existing gas business, market outlook and anticipated ANOH growth trajectory.

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.

- Advertisement -

The company was represented at the forum by its Chief Executive Officer, Mr Austin Avuru; Chief Financial Officer, Mr Roger Brown; and the Managing Director, AGPC, Mrs Yetunde Taiwo.

Avuru, in his address, said Nigeria holds 37 per cent of total proved gas reserves on the continent, adding that the majority is concentrated in the Niger Delta.

According to him, Domestic Supply Obligation (DSO) price has increased to commercial levels and in- DSO prices are determined on a willing buyer/willing seller basis; opening up a new vista of growth for the seplat’s gas business.

The Seplat CEO said: “Nigeria is one of the largest economies in Africa with a population today in excess of 201 million; 50 per cent are urban dwellers while 62 per cent is less than 25 years in age and 93 per cent is less than 55 years in age.

- Advertisement -

“Projected to grow to a population of 450 million people by 2050 (highest population growth in Africa) and become the third most populated country globally (behind only China and India). This will spur a high demand from power industries and other commercial enterprises.

Read Also:  MTN Group revenue rises 9.4% in H1, announces plans to exit Middle East

“Current capacity deficit in thermal power generation provides immediate headroom to place additional gas volumes (significant installed but non-operating generation capacity seven per cent royalty on gas revenues as opposed to 20 per cent on oil production”.

He said government’s ambition of using gas as an enabler for energy independence, industrial development, commerce, environmental and social sustainability is a real GDP growth driver for Nigeria, and would reduce production cost with reduced power costs to businesses, raise standard of living, develop human capital, and reduce environmental degradation and health risks.

The AGPC, according to Roger, is a special purpose company formed to raise $420m of equity to derisk the project; of which equity investors – Seplat and Nigeria Gas Company- granted equal share 50:50 in AGPC.

- Advertisement -
Read Also:  SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC (“SEPLAT”) NOTICE OF DECISION BY THE SEPLAT BOARD OF DIRECTORS

The Seplat CFO illustrated that it is essential to correlate a company’s funding model and business model citing the company’s proactive payback of its equity debt in the early years as a good example. remarkable, he said.

Roger said equity and debt are to be scaled in line with final project cost whilst maintaining a target debt: equity ratio of 60:40.

On the funding arrangement, Roger said local banks were on board the project including but not limited to UBA, Zenith, Stanbic, Fidelity, FCMB, FBN, Access Bank, Union Bank and Nova.

He added: “International lenders include but not limited to SCB, RMB, Standard Bank, BHGE, and Nedbank.”

According to Taiwo, AGPC schedules synchronizes with Seplat upstream development plan.

The AGPC boss stated: “ANOH is unitized 50:50 across the two blocks. Shell is the operator of the upstream unit. AGPC shall deliver a 300 MMscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.”

- Advertisement -
Seplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand SpurSeplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Seplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand SpurSeplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand Spur

Latest News

Balyesa, Delta Beat Lagos To Become Top Investment Spots For Q1 2021 – NIPC

Nigerian Investment Promotion Commission (NIPC) reports that US$8.41 billion was tracked as investment announcements for Q1 2021, about 75%...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Seplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand SpurSeplat’s $700 Million Gas Project To Strengthen Nigeria Power Supply - Brand Spur