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Petrol Subsidy: FG Paid N52.7bn To Transporters As Bridging Claims

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“With Low Crude Oil Production, Nigeria Is Now Facing Double Jeopardy” – Fawibe

The Federal Government yesterday, disclosed that between December 2021 and February 2022, it has paid a total of N52.7 billion as bridging claims to the transporter.

The Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed made this disclosure in Lagos during an engagement meeting with the downstream stakeholders.

The authority had stated that the Federal Government will continue to pay the cost of bridging petrol to ensure its availability across the country.

However, while speaking to newsmen, Ahmed noted that another area of concern is the transporters and payment of their bridging funds and since the last meeting of December, we have paid about N12.7 billion to the transporters and last week Monday, we paid another N10 billion and this week we are paying another N30 billion to transporters in a bid to give them respite because of the difficulties they are facing with the economic realities. In total,  we have paid N52.7 billion for the bridging fund and this payment is ongoing and as they transport, we pay.

“When we came in, we wanted to ensure that we do our due diligence before payment was done. What we paid in December has surpassed the whole of the payment made in 2021.

“We had to do our due diligence to ensure that those who are owing, we must reconcile before we make the payment. The reconciliation is still ongoing and the more we collect, the more we pay so that we can catch up with the backlog we inherited.”

He said regarding the PIA, regulations are being put in place by the Presidential steering committee chaired by the Minister of State for Petroleum Resources where about 38 regulations that relate to authority, we have received about eight truck regulations that have been forwarded to the authority for review. The intention is to review these regulations and invite all the stakeholders to get input because we do not intend to do this alone. We need to invite stakeholders to review the regulations before they are put in place,” he added.

The Group Executive Director, Downstream, Nigerian National Petroleum Company, NNPC Limited, Mr. Adeyemi Adetunji, stated that “We have had a fruitful engagement with the authority’s chief executive and all the stakeholders in the downstream oil and gas industry.

“NNPC Ltd. continues to play its role as an energy supplier of last resort for the country. We will continue to ensure that all petroleum products are available.

“Thankfully we went through the last festive season (Christmas/ New Year) with zero queues in the country. So we thank all the stakeholders in the industry, we thank Nigerians for ensuring that they were able to access petroleum products at all retail stations and outlets.

“NNPC will continue to put in place and supply the market with adequate petroleum products even as we are now NNPC Limited., a fully commercial company governed by both the PIA and CAMA.

“We will also continue to play our role as a responsible player and subscribe to the highest standards of all the regulations in the industry. We will continue to collaborate with all to ensure that Nigerians have adequate and quality flow of petroleum products at all times.”

On his part, the Chief Executive Officer, Ardova Plc, and Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Olumide Adeosun, stated that “A lot of the key issues that we tabled have been addressed. Some remain to be addressed and some are works in progress.

“A case in point over work in progress is the plan that we need to have in place post-announcement of the postponement of the subsidy removal with the PIA.”

Energy

Seplat Energy Appoint Basil Omiyi, And Charles Okeahalam To Board Of Directors

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Board of Directors

Appointment of Basil Omiyi, CON, as Independent Non-Executive Chairman
and Dr Charles Okeahalam as Senior Independent Non-Executive Director 

Olushola Okunlade Writes

Seplat Energy PLC, a leading Nigerian energy company dual-listed on both the Nigerian and the London Stock Exchanges, has announced that Mr. Basil Omiyi, CON, has been appointed as the Company’s new Independent Non-Executive Chairman, effective immediately.

His appointment follows a thorough assessment of internal and external candidates and was approved after a unanimous vote by all Directors of Seplat Energy, in compliance with the Companies and Allied Matters Act in Nigeria (“CAMA”).

In addition, Dr. Charles Okeahalam succeeds Mr. Omiyi as the Senior Independent Non-Executive Director.  

Mr. Omiyi has been a member of Seplat Energy’s Board of Directors since March 2013 and as Senior Independent Non-Executive Director from 1 February 2021. During this period, he sat on the Company’s Remuneration, Nominations & Governance, Energy Transition, and Risk Management & HSSE committees.

His experience in the energy industry is extensive, with more than 40 years at Royal Dutch Shell, during which time he held senior roles in Nigeria and Europe, including becoming Managing Director of Shell Petroleum Development Company of Nigeria in 2004 and in addition, Country Chairman of Shell Companies, Nigeria, until his retirement in 2009.

Mr. Omiyi has held several leadership positions in the Nigerian oil and gas industry, including Chairman, Upstream Industry Group (Oil Producers Trade Section, Lagos Chambers of Commerce & Industry) from 2007-2010;  Chairman of the Energy Sector of NEPAD Business Group, Nigeria, and Board Member NEPAD Business Group, Nigeria from 2005-2010; Chairman, of the Oil & Gas Commission of the Nigerian Economic Summit Group from 2005-2010; and Board Member, Nigerian Extractive Industry Transparency Initiative (NEITI) 2007-2010. Mr. Omiyi is also the Independent Non-Executive Chairman of Stanbic IBTC Holdings, a subsidiary of Standard Bank Group, a post he has held since 2015.  

In 2011, he was awarded the national honour of Commander of the Order of the Niger for pioneering leadership in Nigeria’s oil and gas sector.

Dr. Charles Okeahalam joined the Board in March 2013 as an Independent Non-Executive Director is Chairman of Seplat Energy’s Finance Committee, and is a member of the Energy Transition, Remuneration, and Nominations & Governance committees.   

Dr. Okeahalam has extensive corporate finance and capital markets expertise and in particular, detailed knowledge of African financial markets, economies, and the investment industry. He was a co-founder of AGH Capital Group, private equity and diversified investment holding company based in Johannesburg, with assets in several African countries. Prior to co-founding AGH Capital Group in 2002, he was a Professor of Financial Economics and Banking at the University of the Witwatersrand in Johannesburg.

His other roles have included advising a number of African central banks and government ministries, the World Bank, and the United Nations. He has held several board positions and is a former non-executive chairman of Heritage Bank Limited, Nigeria. Since March 2016 he has served as the non-executive chairman of the Nigeria Mortgage Refinance Company.

Roger Brown, Chief Executive Officer of Seplat Energy, said:

“As the founders of Seplat Energy Dr. ABC Orjiako and Mr. Austin Avuru step off the board and the Company moves into the next chapter of its development, Seplat has once again demonstrated its commitment to strong corporate governance in delivering on its promise of appointing an Independent Non-Executive Chairman. 

Mr. Basil Omiyi has been a leading figure in the Nigerian oil and gas sector and also with Seplat Energy, has joined its Board in 2013 and helped it to achieve a dual listing in April 2014. His vast depth of experience and his detailed knowledge of Seplat Energy will be invaluable as we continue to evolve and mature the company. He has provided invaluable guidance as an Independent Director and I look forward to his continued leadership as our new Independent Non-Executive Chairman.

We will also benefit from the considerable expertise of Dr. Charles Okeahalam as Senior Independent Non-Executive Director, especially his experience and knowledge of Africa’s economies and its financial markets.

Under their guidance, we will continue to expand and consolidate our position as Nigeria’s leading energy company and the partner of choice to deliver energy transition for Africa’s largest economy and its rapidly growing population.”

Seplat Energy Plc, a leading indigenous Nigerian energy company with a strategic focus on Nigeria, is listed on the Premium Board of the Nigerian Exchange Limited (“NGX”) (NSE:SEPLAT) and the Main Market of the London Stock Exchange (“LSE”) (LSE:SEPL). Seplat is pursuing a Nigeria-focused growth strategy and is well-positioned to participate in future divestment programs by the international oil companies, farm-in opportunities, and future licensing rounds.  For further information please refer to the company website, http://seplatenergy.com/

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NNPC Board Chairman Commends Nigeria’s Participation At OTC 2022

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‘There’s Sufficient Petrol’, Don’t Panic To Buy, Says NNPC

Olushola Okunlade Writes

Senator Margery Chuba-Okadigbo, Chairman of the Board of the Nigerian National Petroleum Company (NNPC) Ltd., on Monday commended the Nigerian delegation at the 2022 Offshore Technology Conference (OTC), in Houston, Texas, United States.

Chuba-Okadigbo gave the commendation while declaring open the OTC Nigerian exhibition pavilion at the conference.

She expressed her excitement toward declaring the pavilion open, saying that it was a thing of joy and pride that Nigeria is well represented at the conference.

Reports have it that the theme of the Nigerian exhibition pavilion is: “Energy Transition and the Future of Africa”, organized by the Petroleum Technology Association of Nigeria (PETAN).

The OTC is a platform where energy professionals across the globe meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources.

“I am delighted to declare this exhibition open. Again, it’s a thing of joy and pride to see you Nigerians well represented in foreign countries,” she said.

Earlier in his opening remarks, the Chairman of PETAN, Mr. Nicolas Odinuwe, said that the theme was carefully chosen to “reflect the current realities in African oil and gas.”

Odinuwe called on Nigerian oil and gas industry leaders to continue to echo PETAN’s calls to deepen Nigerian content as always and implored the NNPC Ltd. board and others to indulge the association.

“OTC means different things to different people. But thanks to PETAN’s focused participation.

“PETAN and Nigeria have built capacities, capabilities, and visibility. PETAN has been the host of the Nigerian Pavilion for over 15 years.

“And we have been fully supported by the NNPC (now NNPC Limited) who are in transition.

We are here to continue to propagate, advocate and advance technology that has led to Nigeria being the only country in Sub-Saharan Africa with a robust exploration and production service industry,” he said.

According to the chairman, OTC gives attendees access to leading-edge technical information.

He said: “The benefits of the OTC 2022 event include showcasing companies’ capabilities to over 1,000 delegates and over 250 companies in the oil and gas industry.

“Also to give exhibitors the chance to promote their products and services to operators and contractors in the local region.

“Other benefits include gaining access by organizations to the latest industry news, a presence at one of the world’s largest oil and gas events and access to networking opportunities with professional contacts from across the world.

“Networking with the upstream, midstream, and downstream organizations as well as high profiled government officials and key decision-makers in the industry.

” The conference will give participants the opportunity to build and establish new leads as well as entrench a global presence in the industry.

“It will enable them to get familiar with competitors’ capabilities to stay ahead in the industry.”

Odinuwe said that PETAN had been responsible for leading and hosting the Nigerian government agencies, stakeholders, oil and gas companies, and investors at the OTC yearly.

He said that among the reasons for OTC was to deliver a unique experience for exhibitors and delegates to interact with global professionals as they share their insights on technological advances, energy transition, safety, environmentally focused solutions, and economic and regulatory impacts of the offshore energy sector.

“Organisations’ attendance will create a chance to develop business relationships and tap into emerging regions that are vital to offshore development as well as obtaining recognition necessary for growth and visibility to thousands across the globe,” he added.

He recalled that at the OTC 2019, Nigeria had the fifth-largest representation of over 60 participating countries.

“The value of participating organizations’ presence cannot be overestimated as they stand a chance to project their activities to investors and stakeholders spanning different countries.

The event will feature, among others, the formal opening of the Nigerian exhibition pavilion in the NRG Park; the luncheon and panel sessions on the Nigerian energy and supportive industries; the Nigerian Industry Awards Dinner and Cocktail; sideshows of Nigerian culture displays and entertainment; technical sessions and networking golf event,” he said.

PETAN is an association of indigenous Technical Oilfield Service Companies.

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Seplat Energy Grows PBT By 197.8% To N34.7 Billion

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Seplat Energy grows 2021 full-year gross profit by 128.9% to N114.2bn

… Cash generated from operations hits N74.4bn, rising by 197.8%

Olushola Okunlade Writes

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its unaudited results for the three months ended 31 March 2022, recording a rise in profit before tax by 197.8 per cent to N34.7bn from N10.6bn year-on-year.

The company also generated cash from its operations to the tune of N74.4bn from N1.7bn year-on-year, rising by 197.8 per cent.

The energy Companies also grew their revenue by 58.6 per cent to N100.6bn from N57.9bn year-on-year; as their gross profit soars to N48.8bn from N20.1bn year-on-year, rising by 122.3 per cent.

In its operations, Seplat Energy demonstrated a strong safety record, which extended to 26.1 million hours without LTI from operated assets (2.0 million hours in Q1 2022).

Operational highlights

§  Strong safety record extended to 26.1 million hours without LTI from Seplat Energy operated assets
(2.0m hours in Q1 2022)

§  Working interest production averaged 47,603 boepd (liquids 29,079 bopd, gas 18,524 boepd) 

§  Full-year guidance remains unchanged at 50-60 kboepd

§  Amukpe-Escravos Pipeline is mechanically completed, all commercial terms have been agreed upon and are moving through counterparty approval processes for signature. Expected to be fully operational by end of Q2 2022.

§  Sibiri exploration well drilled and successful, data analysis underway, working with a partner to secure regulatory approval for Extended Well Test

§  Decision to exit Ubima to focus on more profitable assets; agreement reached to sell Seplat Energy’s share to its JV partner for $55 million.  2P reserves reduce by 2 MMboe from 457mmboe to 455 MMboe.

Financial highlights  

§  Revenues up 58.6% to $241.8 million  

§  EBITDA up 81.6% to $147.4 million (adjusted for non-cash items)

§  Strong cash generation of $178.7 million, capex of $25.7 million 

§  Strong balance sheet with $312.2 million cash at bank, net debt of $442.6 million  

§  Q1 interim dividend of US2.5 cents per share    

Update on proposed acquisition of Mobil Producing Nigeria Unlimited

§  Sales & Purchase Agreement signed on 25 February to acquire Exxon’s shallow water operations in Nigeria, Mobil Producing Unlimited, Nigeria (MPNU)

§  Acquisition remains on track and awaiting necessary approvals, expected to complete in H2 2022

Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc, said:

“Seplat Energy delivered a good quarter that benefited from higher oil pricing, which offset lower production owing to continuing problems with the Trans Forcados Pipeline. However, the alternative Amukpe-Escravos Pipeline is mechanically complete and once we have signed the commercial agreements, we expect Chevron to be lifting our oil through the Escravos Terminal in the third quarter. 

“Our proposed acquisition of MPNU remains on course. We are awaiting the necessary approvals from the government and regulators and expect the transaction to complete in the second half of this year. The effective date of 1 January 2021 means we will benefit from higher recent oil prices and as we have previously reported, the addition of MPNU will nearly treble our production and double our reserves on a pro forma 2020 basis. The acquisition will reinforce our leadership of Nigeria’s indigenous energy sector and enable us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns. It will also bring a significant undeveloped gas resource base which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.

“We announce the decision to divest the Group’s interest in the Ubima marginal field for a consideration of $55million, which marginally reduces the company’s 2P reserves by 2 MMboe to 455 MMboe. 

“We have proven we have the financial strength and credibility to attract international finance into Nigeria’s energy sector and this will help us in our aim to deliver energy transition and provide cleaner, more reliable, and more affordable energy for Nigeria’s young and growing population.”

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