Energy

Seplat Energy Grows 2021 Full-Year Gross Profit By 128.9% To N114.2bn

Published

1 year ago

March 1, 2022

Business Echo Magazine

… declares US2.5 cents per share for Q4

Olushola Okunlade Writes

Seplat Energy Plc (Seplat Energy), a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its audited results for the full year ended 31 December 2021, recording a growth of its 2021 full-year gross profit by 128.9% to N114.2bn.

The foremost indigenous energy company also announced a 38.2% rise in its 2021 full-year revenue to N293.6bn; and a growth in profit before tax by 321.1% to N71bn.

Commenting on the very impressive results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc, said: “Seplat Energy announced a major acquisition last week and despite a challenging year for Nigerian oil and gas, the robust results delivered today clearly show how our increasing financial strength has made such an acquisition possible, without the need to dilute shareholders, by giving international financial partners the confidence to invest in our vision.

The addition of MPNU nearly trebles our production and doubles our reserves on a pro forma 2020 basis, reinforcing our leadership of Nigeria’s indigenous energy sector and enabling us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns.

Our 2021 performance was affected by outages at Forcados Terminal that will no longer have such an impact when we switch to the new Amukpe-Escravos Pipeline, which we expect to launch in March. This is part of our strategy to diversify and derisk routes to market, assuring higher revenues from significantly better uptime and lower reconciliation losses. Furthermore, once we have completed our acquisition of MPNU, we will add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses.

The addition of MPNU offers 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.

Our financial strength is matched by the skills and ambitions of our staff and we look forward to welcoming more than a thousand highly trained colleagues from MPNU and working with them to ensure their smooth onboarding into Seplat Energy. Together we will build a sustainable, world-class company that generates attractive returns for stakeholders and delivers energy transition for one of the world’s largest and most rapidly growing populations.”

Operational highlights

§ Strong safety record extended, 28 million hours without LTI from Seplat Energy operated assets

§ Delivered robust performance against challenging year for Nigerian oil & gas industry

§ Working interest production averaged 47,693 boepd, impacted by August and December FOT shut-ins

§ Completed nine wells: five oil and four gas wells

§ Eland’s OML 40: four wells drilled at a total gross cost of US$60million, now delivering 15.5 kbopd (gross)

§ Sibiri exploration on OML40 drilled to TD in February with initial indications it has encountered eight oil-bearing reservoirs with 353 ft of gross hydrocarbon pay, net pay of 229 ft; further data acquisition and analysis are underway

Financial highlights

§ Revenues up 38% to $733 million ($747 million including $14 million underlift)

§ Adjusted EBITDA up 40% to $372 million,

§ Strong cash generation of $394 million against CAPEX of $137 million (excluding the cost of rig acquisitions)

§ Strong balance sheet with $341 million cash at bank, net debt of $426 million and

§ Q4 dividend of US2.5 cents per share recommended

Corporate updates

§ Name changed to Seplat Energy to reflect the evolving strategy

§ Proposed $1.28 billion MPNU acquisition adds transformational shallow water portfolio with dedicated export routes

§ AEP mechanically completed in January, hydrocarbons introduced into line as part of commissioning process,
commercial agreements to enable production into terminal being finalised; injection expected in March

§ ANOH project mechanical completion expected H2 2022 (84% complete at present, all materials in-country), however, delays to third-party spur line likely to delay first gas to H1 2023

§ Related party transactions eliminated from 1 January 2022

Outlook for 2022 (excluding MPNU)

§ Production guidance of 50-60 kboepd, capex expected to be $160 million

§ MPNU next steps: focus on government approvals and transition planning, completion of expected H2

Outlook and plans for 2022

Full-year production guidance for 2022 is set at 50,000 to 60,000 boepd on a working interest basis, comprising 30,000 to 35,000 bopd liquids and 116 to 150 MMscfd (20,000 to 25,000 boepd) gas production. This guidance does not include any contribution from MPNU and the ANOH Gas Plant.

We expect production uptime of 75% for evacuation through the TFS and 90% for evacuation via the AEP, the latter being our preferred export route from OMLs 4, 38, & 41.

Capital expenditure for 2022 is expected to be around $160 million. We expect to drill a minimum of ten wells, including the Sibiri exploration well and one appraisal well, complete ongoing projects, invest in maintenance CAPEX to secure the existing assets, and continue investments in gas. The 2022 drilling program is designed to address production decline and along with completion of maintenance activities, will support long-term production levels from the assets. With the recovery in oil prices, rig-based and other project activities activity will ramp up in 2022.

Facilities and engineering projects will focus on the delivery of an upgraded integrated gas processing facility at Sapele and further upgrades to the liquid treatment facility to enable increased deliveries of dry crude. Towards our goal to end routine flaring by 2024, we will focus on Oben, Amukpe, Sapele & Jisike end of routine flaring projects, which will capture and monetize gas for productive use.

In OML 53, in addition to drilling, we plan to complete the Jisike flow station debottlenecking and gas lift compressor station and installation of the Ohaji South Lease Automatic Custody Transfer (LACT) Unit.

For the non-operated assets, in OML 40, in addition to the drilling plans, facilities and engineering work will focus on the Gbetiokun facilities upgrade to optimise the Gbetiokun barging operations; whilst we complete all front-end activities for the Gbetiokun to Adagbasa pipeline which will replace the barging of the produced crude. In OPL 283, we have planned one gas well re-entry for production testing and the Igbuku gas plant design (FEED). The delivery of the 2022 Workplan will be underpinned by a strong commitment to safety, asset integrity, GHG emissions reduction and operational excellence.

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Related Topics:#oil&gas #oilandgascompanies #Oilexploration #seplat #seplatenergy

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Energy

Govt Thailand To Gather Industry Leaders In Bangkok For “Ministerial Energy Forum” At Future Energy Asia 2023

Published

8 hours ago

March 24, 2023

Business Echo Magazine

GOVERNMENT OF THAILAND TO GATHER INDUSTRY LEADERS IN BANGKOK FOR “MINISTERIAL ENERGY FORUM” AT FUTURE ENERGY ASIA 2023 Bangkok, Thailand, 22 March 2023: Today the Kingdom of Thailand’s Ministry of Energy, together with dmg events and Exposis, announced the launch of the inaugural “Ministerial Energy Forum”, which is set to take place at the Future Energy Asia Exhibition & Summit in Bangkok from 17-19 May 2023. The event is backed by the Thailand Convention & Exhibition Bureau (TCEB) and has been nominated Thailand’s Ministry of Energy under the One Ministry - One Convention framework. Reflecting the critical need for a platform to tackle global energy issues from an Asian perspective. As the energy transition continues to touch almost every aspect of global policy making, the Ministerial Energy Forum will host key figures from Southeast Asia and beyond - including Ministers of Energy, policymakers, diplomats and more - and generate strategic and technical insights to help shape the short, medium, and long-term energy policies that will define the decades to come. Through the participation of key figures from the Ministry of Energy - including the Deputy Prime Minister and Minister of Energy, His Excellency Supattanapong Punmeechaow - the Forum will also shine a light on the policies and priorities of the government of Thailand. As burgeoning economic growth and increased energy demand position the country at the centre of the global energy transition, the Forum will support the development of the energy sector in Thailand and the wider ASEAN region. Speaking at the launch of the Ministerial Energy Forum, Prof. Dr. Pisut Painmanakul, Secretary to the Minister of Energy, Ministry of Energy Thailand, said, “We are pleased to offer our strong support to Future Energy Asia, and we are delighted to be hosting the Ministerial Energy Forum at this year’s event, which comes at a pivotal moment for the industry and the region. “Thailand is proud to be carving a new path towards sustainable development. We are committed to carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065 and we are excited by the opportunity that the event presents to help us achieve these goals, and to showcase our ongoing efforts, including the Bangkok Goals for the BCG Economy.” The fifth edition of Future Energy Asia is also supported by key companies central to Thailand’s energy transition, including PTT and the Electricity Generating Authority of Thailand. Alongside the Ministerial Energy Forum, Future Energy Asia will also host a high-level strategic summit, a technical conference, and an international exhibition where industry players will showcase their technologies and services. Key industries that will be participating include, oil & gas, renewables, hydrogen and carbon capture, utilisation, and storage (CCUS), all of which have an essential role to play in achieving net-zero targets, regionally and globally. Future Energy Asia will be co-located with Future Mobility Asia, a comprehensive showcase of future clean mobility concepts, solutions, technologies, and innovations. The Future Mobility Asia exhibition and strategic & technical conferences will form the central meeting point for OEMs, mobility innovators, after-market suppliers, and technology solution providers to meet, network and drive forward the mobility transition and transformation in Asia. The Future Mobility Hub - a first of its kind interactive and immersive showcase - will be a highlight of the Future Mobility Asia exhibition, offering visitors a glimpse into a cosmopolitan city where future mobility and technology is woven into one. By 2030 Southeast Asia will be the fourth largest global economy, with energy demand expected to have tripled between 2013 and 2040, giving the region an integral role to play in paving the path to net-zero. Future Energy Asia and Future Mobility Asia will provide the international community with unparalleled access to industry insights and business leaders transforming the energy value chain and will bring unrivalled benefits to the local and regional industry, including the generation of hundreds of millions in trade value. Chiruit Isarangkun Na Ayuthaya, President of Thailand Convention and Exhibition Bureau, said, “We look forward to supporting this year’s edition of Future Energy Asia a primary event of focus especially with the Ministerial Energy Forum. Thailand is a global hub at the centre of the fastest and most important economic growth in the world which is why the issues that will be addressed at this year’s event are so important.” Christopher Hudson, President of dmg events, organiser of Future Energy Asia, said, “The global energy transition is at the heart of Future Energy Asia and the strong support we have received from the Ministry of Energy and the Thailand Convention & Exhibition Bureau reflects the importance of strategic action in making energy accessible, secure, and affordable for all”. About Future Energy Asia Hosted by the Kingdom of Thailand’s Ministry of Energy and organised by dmg events, the fifth edition of Future Energy Asia will welcome over 18,000 visitors to Bangkok, to showcase the vital role that the energy sector has to play in meeting global energy demand and unlocking the potential of a decarbonised future, in Asia and beyond. The fifth edition of Future Energy Asia will feature: An exhibition showcasing over 300 companies from more than 70 countries, highlighting the vital role the energy sector has to play in the decarbonised future from a global and Asian perspective. The inaugural Ministerial Energy Forum bringing together 15+ energy ministers, policymakers and industry stakeholders to discuss pertinent challenges and policy responses around energy accessibility, affordability and security. A high-level Strategic Summit on the new market dynamics and innovations that are changing the energy sector including the potential of hydrogen to support the energy transition, decarbonising E&P operations, accelerating investments in new project development, unlocking new technologies in the energy sector, navigating changing gas LNG markets, and the importance of digitalisation in modernising the grid. A Technical Conference convening engineers and project managers across 100+ sessions, enabling the technical skills and knowledge share required to navigate a rapidly changing industry, and offering visitors key insights into vital progress that is being made towards decarbonising the energy value chain. About Future Mobility Asia Co-located alongside Future Energy Asia, the second edition of Future Mobility Asia will offer a comprehensive showcase of all future clean mobility concepts, solutions, technologies, and innovations. The exhibition and summit will be central meeting point for OEMs, mobility innovators, after-market suppliers and technology solutions providers to meet, network and drive forward the mobility transition and transformation in Asia. Mobility will form a central pillar of the discussions, showcases and exhibitions taking place throughout the show, including the Ministerial Energy Forum. Future Energy Asia and Future Mobility Asia will take place at the Queen Sirikit National Convention Center, Bangkok, Thailand from 17-19 May 2023. Anyone wishing to attend can register: Delegate - https://www.futureenergyasia.com/delegateregistration/ Visitor - https://www.futureenergyasia.com/visitor-registration For more information, please visit https://www.futureenergyasia.com/ Follow us on social media channels @futureenergyasia For media enquiries, contact: fea23@pa.group For media partnerships, contact: marketing@futureenergyasia.com About dmg events: dmg events is one of the leading global event organisers, with 84 events across several key industries, attracting over 425,000 attendees. Its energy portfolio includes some of the biggest events in the sector, such ADIPEC, Gastech, Egypt Energy Show (EGYPES), World Utilities Congress, NOG Event and the Global Energy Show. Find out more at www.dmgevents.com.

Rashidat Olushola Okunlade Writes

On Wednesday the Kingdom of Thailand’s Ministry of Energy, together with dmg events and Exposis, announced the launch of the inaugural “Ministerial Energy Forum”, which is set to take place at the Future Energy Asia Exhibition & Summit in Bangkok from 17-19 May 2023.

The event is backed by the Thailand Convention & Exhibition Bureau (TCEB) and has been nominated by Thailand’s Ministry of Energy under the One Ministry – One Convention framework. Reflecting the critical need for a platform to tackle global energy issues from an Asian perspective.

As the energy transition continues to touch almost every aspect of global policymaking, the Ministerial Energy Forum will host key figures from Southeast Asia and beyond – including Ministers of Energy, policymakers, diplomats and more – and generate strategic and technical insights to help shape the short, medium, and long-term energy policies that will define the decades to come.

Through the participation of key figures from the Ministry of Energy – including the Deputy Prime Minister and Minister of Energy, His Excellency Supattanapong Punmeechaow – the Forum will also shine a light on the policies and priorities of the government of Thailand.

As burgeoning economic growth and increased energy demand position the country at the centre of the global energy transition, the Forum will support the development of the energy sector in Thailand and the wider ASEAN region.

Speaking at the launch of the Ministerial Energy Forum, Prof. Dr. Pisut Painmanakul, Secretary to the Minister of Energy, Ministry of Energy Thailand, said, “We are pleased to offer our strong support to Future Energy Asia, and we are delighted to be hosting the Ministerial Energy Forum at this year’s event, which comes at a pivotal moment for the industry and the region.

“Thailand is proud to be carving a new path towards sustainable development. We are committed to carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065 and we are excited by the opportunity that the event presents to help us achieve these goals, and to showcase our ongoing efforts, including the Bangkok Goals for the BCG Economy.”

The fifth edition of Future Energy Asia is also supported by key companies central to Thailand’s energy transition, including PTT and the Electricity Generating Authority of Thailand.

Alongside the Ministerial Energy Forum, Future Energy Asia will also host a high-level strategic summit, a technical conference, and an international exhibition where industry players will showcase their technologies and services. Key industries that will be participating include, oil & gas, renewables, hydrogen and carbon capture, utilisation, and storage (CCUS), all of which have an essential role to play in achieving net-zero targets, regionally and globally.

Future Energy Asia will be co-located with Future Mobility Asia, a comprehensive showcase of future clean mobility concepts, solutions, technologies, and innovations. The Future Mobility Asia exhibition and strategic & technical conferences will form the central meeting point for OEMs, mobility innovators, after-market suppliers, and technology solution providers to meet, network, and drive forward the mobility transition and transformation in Asia.

The Future Mobility Hub – a first-of-its-kind interactive and immersive showcase – will be a highlight of the Future Mobility Asia exhibition, offering visitors a glimpse into a cosmopolitan city where future mobility and technology are woven into one.

By 2030 Southeast Asia will be the fourth largest global economy, with energy demand expected to have tripled between 2013 and 2040, giving the region an integral role to play in paving the path to net zero. Future Energy Asia and Future Mobility Asia will provide the international community with unparalleled access to industry insights and business leaders transforming the energy value chain and will bring unrivalled benefits to the local and regional industry, including the generation of hundreds of millions in trade value.

Chiruit Isarangkun Na Ayuthaya, President of Thailand Convention and Exhibition Bureau, said, “We look forward to supporting this year’s edition of Future Energy Asia a primary event of focus, especially with the Ministerial Energy Forum. Thailand is a global hub at the centre of the fastest and most important economic growth in the world which is why the issues that will be addressed at this year’s event are so important.”

Christopher Hudson, President of dmg events, organiser of Future Energy Asia, said, “The global energy transition is at the heart of Future Energy Asia and the strong support we have received from the Ministry of Energy and the Thailand Convention & Exhibition Bureau reflects the importance of strategic action in making energy accessible, secure, and affordable for all”.

Know More About Future Energy Asia: Hosted by the Kingdom of Thailand’s Ministry of Energy and organised by dmg events, the fifth edition of Future Energy Asia will welcome over 18,000 visitors to Bangkok, to showcase the vital role that the energy sector has to play in meeting global energy demand and unlocking the potential of a decarbonised future, in Asia and beyond.

The fifth edition of Future Energy Asia will feature:

An exhibition showcasing over 300 companies from more than 70 countries, highlighting the vital role the energy sector has to play in the decarbonised future from a global and Asian perspective.

The inaugural Ministerial Energy Forum brings together 15+ energy ministers, policymakers, and industry stakeholders to discuss pertinent challenges and policy responses around energy accessibility, affordability, and security.

A high-level Strategic Summit on the new market dynamics and innovations that are changing the energy sector including the potential of hydrogen to support the energy transition, decarbonising E&P operations, accelerating investments in new project development, unlocking new technologies in the energy sector, navigating changing gas LNG markets, and the importance of digitalisation in modernising the grid. A Technical Conference convening engineers and project managers across 100+ sessions, enabling the technical skills and knowledge share required to navigate a rapidly changing industry, and offering visitors key insights into vital progress that is being made towards decarbonising the energy value chain.

Know More About Future Mobility Asia: Co-located alongside Future Energy Asia, the second edition of Future Mobility Asia will offer a comprehensive showcase of all future clean mobility concepts, solutions, technologies, and innovations. The exhibition and summit will be central meeting point for OEMs, mobility innovators, after-market suppliers, and technology solutions providers to meet, network, and drive forward the mobility transition and transformation in Asia. Mobility will form a central pillar of the discussions, showcases, and exhibitions taking place throughout the show, including the Ministerial Energy Forum.

Future Energy Asia and Future Mobility Asia will take place at the Queen Sirikit National Convention Center, Bangkok, Thailand from 17-19 May 2023.

Anyone wishing to attend can register:
Delegate – https://www.futureenergyasia.com/delegateregistration/
Visitor – https://www.futureenergyasia.com/visitor-registration
For more information, please visit https://www.futureenergyasia.com/

Post Views: 5

Energy

Shell Lifts Force Majeure On 250,000bpd Bonny Export Terminal, Rises Hope For Nigeria

Published

1 week ago

March 16, 2023

Business Echo Magazine

The Shell Petroleum Development Company of Nigeria Limited (SPDC) said it has lifted the force majeure on its 250,000 barrels per day (bpd) Bonny export terminal with effect from Wednesday, 15 March 2023.

The oil major declared the force majeure on March 3, 2022, following a significant decline in crude receipts at the Bonny Oil and Gas Terminal caused by rampant crude theft and vandalism.

A spokesperson of SPDC who did not want his name in print, announced this yesterday, saying, “The Shell Petroleum Development Company of Nigeria Limited (SPDC), operator of the SPDC joint venture, has lifted the force majeure on Bonny export program with effect from Wednesday, March 15, 2023.

“The force majeure was declared on March 3, 2022 following a significant decline in crude receipts at the Bonny Oil and Gas Terminal.”

On November 22, Shell lifted force Majeure declared on the oil export program from the terminal following a leak on the 150,000bpd Nembe Creek Trunk Line (NCTL), one of the two pipelines that feed crude to the Bonny Light terminal.

Nigeria had suffered severe oil losses in the last one or two years due to the activities of oil thieves and vandals.

The country’s oil output had dropped to an all-time low of 900,000bpd in August 2022, leading to Nigeria’s knockout at some point as Africa’s largest oil producer by Angola, according to the Organisation of the Petroleum Exporting Countries (OPEC) Monthly Oil Market Report for September 2022.

The oil cartel stated that Nigeria’s crude oil production dropped from one million bpd recorded in July 2022 to 900, 000bd in August.

At the height of the embarrassing production underperformance, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari, had lamented that Nigeria was losing about 95 per cent of oil production at the Bonny terminal to theft.

“I can tell you, in one line, just less than 200 kilometers, we had 295 illegal connections and you see the data”, Kyari had said.

He had stated that Nigeria was losing nearly all the oil output at Bonny, the town after which its premium oil grade, Bonny Light is named and a key export point for the country

“What is most difficult to manage today is the issue of crude oil theft, it is real and it is happening”, the GCEO had said.

But the country is gradually recovering as production has climbed to 1.3 million bpd owing to a rash of measures jointly taken by the NNPC, private security operatives, and government agencies to tackle crude theft.

Post Views: 32

Energy

Digital Technology: The Backbone Of Net-Zero Emissions

Published

1 week ago

March 15, 2023

Business Echo Magazine

Digital Technology: The Backbone Of Net-Zero Emissions

In a net-zero emissions world, digital technologies and solutions will be the backbone of energy systems. The future of energy is decarbonized, decentralized, and digital.

As we progress in this transformative decade for our industry, digitalisation is already transforming the energy industry, by improving efficiency and safety as well as by helping to drive the energy transition.

Read the report “Digital technology: The backbone of a net-zero emissions future”, to understand why digital technologies will be key to the net-zero transition, and to explore the readiness of industry sectors to decarbonise through digitalisation.

For more information about how we can accelerate the energy transition with Web3 technologies, read this complementary article with MIT Technology Review Insights.

Post Views: 29