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

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

… 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.

Energy

The Nigeria Prize For Science 2022: NLNG Encourages Science Students, Awards Three Tier Scholarship Schemes

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(L-R) Ms. Funke Opeke, 2022 The Nigeria Prize for Science (NPS) Judge; Prof. Christian Agbo, Chairman, Panel of Judges; Prof. Barth Nnaji, Chairman, Advisory Board, NPS; Mr. Andy Odeh, NLNG’s GM, External Relations & Sustainable Development; Prof. Mohammed Magaji, NPS Judge; and Mrs. Anne-Marie Palmer-Ikuku, Ag. Mgr Corporate Communications & Public Affairs during the announcement of winners for the 2022 edition of the prize…on 14th Sep 2022 in Lagos.

Theme: “Innovations in Sustainable Food Security”

…Records a high number of low-quality entries that do not meet the requisite criteria to merit the award

Olushola Okunlade Writes

NLNG has been solving national problems by encouraging science students through awarding three tiers of the scholarship scheme which are the Primary Scholarship Scheme, Undergraduate Scholarship Scheme, and Post-Graduate Scholarship Scheme.

NLNG has been consistent since 2004 and continued sponsorship of the prize in the face of Nigeria’s challenging economic and social landscape.

Interestingly, 99% Post-Graduate overseas scholarship schemes that have received support are from science

The Nigeria Prize For Science 2022 cycle has been very intense with 107 entries recorded, the Panel of Judges has evaluated all the entries received and submitted their report to the Advisory Board.

General Manager, External Relations, NLNG, Mr. Andy Odeh in his statement at the press conference on Wednesday reiterated that the dedicated website for the 3 Prizes; The Nigeria Prize for Literature, the Nigeria Prize for Literary Criticism, and the Nigeria Prize for Science remains and is the ONLY platform through which information about the Prizes, process, governance, winning works, and winners will be made readily available to members of the public. 

Funke Opeke at the press conference on Wednesday said “We want more young women in science and technology, these careers are accessible to young women to pursue. I am certainly looking forward to the day seeing women scientists winners and I hope NLNG will invite me to witness the prize giving. That is the challenge to all our young female scientists, you need to participate and make yourself aware.

In February 2022, the Advisory Board of The Nigeria Prize for Science announced the call for entries for the annual prize, centred on the theme “Innovations in Sustainable Food Security”. By the deadline set for submission, the board had received One Hundred and Seven (107) entries – the highest number since the inception of the award.

The theme “Innovations in Sustainable Food Security” is significant because attaining food security is a key component of our national agenda. At the global level, Goal 2 of the Sustainable Development Goals (SDGs) seeks sustainable solutions to end hunger in all its forms by 2030 and to achieve food security. This entails improving the productivity and incomes of small-scale farmers by promoting equal access to land, technology, and markets, resilient agricultural practices, and sustainable food production systems.

A Panel of Judges was appointed to assess entries submitted for the Prize. The appointed judges are seasoned academics and innovators who have wide experience, peer recognition, good public image and command respect nationally and internationally. The choice of the judges reflects a multi-disciplinary approach relevant to the theme in focus. The entries for the 2022 prize were handed over to the Panel of Judges for independent evaluation. Each member of the Panel evaluated the entries individually and submitted them to the Prize Secretariat. Thereafter, the Panel convened, discussed, and harmonised the submissions.

The panel was conscious that innovation must be the underlying reason for qualification. To guide the adjudication process, the judges applied Assessment Criteria approved by the Advisory Board as follows:

  • Be patented
  • Have an academic track record
  • Be of high quality
  • Demonstrate evidence of originality/uniqueness
  • Have significant recognition/awards
  • Be sound
  • Have wide impact
  • Be free of ethical issues
  • Be reproducible and attractive to stakeholders

Prof. Barth Nnaji, Chairman, Advisory Board – The Nigeria Prize for Science 2022, yesterday at the press conference, in Lagos, announced the two most outstanding works after diligent consideration and objective application of the guidelines and criteria, the judges recommended two (2) most outstanding works on “Gains in Grain Yield of Released Maize (Zea Mays L.) Cultivers under Drought and Well-Watered Conditions” by Muhyideen Oyekunle and Shehu Ado; and “Development of Process Plant for Plantain Flour” by Sesan Peter Ayodeji and Emmanuel Olatunji Olatomilola, as winners of the $100,000 prize money.

Muhyideen Oyekunle and Shehu Ado’s work on “Gains in Grain Yield of Released Maize (Zea Mays L.) Cultivers under Drought and Well-Watered Conditions” provides us with a unique opportunity. The maize seeds they selected through a breeding program have been tested to be high-yielding and water-stress tolerant. The hybrids they selected record yields of 1.73-2.51 t/ha in stress areas and 5-6 t/ha in areas with good rainfall distribution in farmers’ fields against an average yield of 2 t/ha available maize varieties in Nigeria in the last five years.

Sesan Peter Ayodeji and Emmanuel Olatunji Olatomilola’s work on “Development of Process Plant for Plantain Flour” is an important innovation for reducing spoilage of farm products and packaging for distribution as well as a value addition for farm products. It is resourceful in scaling up from batch production to industrial-scale continuous flour production relevant beyond plantain to other food items.

Following the Judge’s recommendation and the ratification by the Advisory board, the recommended entries are hereby declared as the Nigeria Prize for Science 2022 Winners.

The Advisory Board in their statement said “Whilst we are excited about having a prize winner for 2022 as against 2020/2021, it is expedient we highlight the high number of low-quality entries that do not meet the requisite criteria to merit the award. This is disturbing considering the importance of the focus on our nation and indeed our world.”

The Advisory Board is optimistic that the award of this prize annually will continue to reinvigorate the passion of both budding and more established scientists and innovators in finding solutions to our everyday issues. We commend the Panel of judges for the diligence, which was apparent in the delivery of this assignment. We are particularly pleased that in evaluating the entries, they upheld the objectives of the Prize as it seeks to identify and promote excellence in utilizing scientific knowledge for the achievement of desired solutions. I also acknowledge and commend my colleagues on the Advisory Board for their invaluable contributions throughout the process.

Advisory Board applauds the Board and Management of Nigeria LNG for instituting and sustaining the biggest Science Prize in Africa. We hope that other corporate organisations will emulate them as they continue to demonstrate their passion for helping to build a better Nigeria and ultimately Africa.

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Energy

Two Scientific Works Win The Nigeria Prize For Science, 2022

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(L-R) Ms. Funke Opeke, 2022 The Nigeria Prize for Science (NPS) Judge; Prof. Christian Agbo, Chairman, Panel of Judges; Prof. Barth Nnaji, Chairman, Advisory Board, NPS; Mr. Andy Odeh, NLNG’s GM, External Relations & Sustainable Development; Prof. Mohammed Magaji, NPS Judge; and Mrs. Anne-Marie Palmer-Ikuku, Ag. Mgr Corporate Communications & Public Affairs during the announcement of winners for the 2022 edition of the prize…on 14th Sep 2022 in Lagos.

Olushola Okunlade Writes

The 2022 edition of  The Nigeria Prize for Science today, announced the two most outstanding works on “Gains in Grain Yield of Released Maize (Zea Mays L.) Cultivars under Drought and Well-Watered Conditions” by Muhydideen Oyekunle and Shehu Ado; and “Development of Process Plant for Plantain Flour” by Sesan Peter Ayodeji and Emmanuel Olatunji Olatomilola, as winners of the $100,000 prize money.

The Prize’s Advisory Board, led by Professor Barth Nnaji, announced the judges’ verdict based on the 2022 theme “Innovations in Sustainable Food Security” at a press conference in Lagos. This is coming after the 2021 cycle, which was based on the same theme, ended without a winner.

In his remarks on the verdict, Mr. Andy Odeh, NLNG’s General Manager, External Relations and Sustainable Development, said the Science Prize is growing in strength as the 2022 verdict depicts. He stated that the Advisory Board and NLNG are working behind the scenes to review the prize for a bigger impact and inclusiveness for the good of society. He emphasized that science can provide solutions to most of the country’s challenges and urged relevant stakeholders and the public to continue to support NLNG through the Nigeria Prize for Science to make scientific breakthroughs the biggest enabler of development in Nigeria, adding that industry and public investors should consider the commercial value of the winning works.

 (L-R) Ms. Funke Opeke, 2022 The Nigeria Prize for Science (NPS) Judge; Prof. Christian Agbo, Chairman, Panel of Judges; Prof. Barth Nnaji, Chairman, Advisory Board, NPS; Mr. Andy Odeh, NLNG’s GM, External Relations & Sustainable Development; Prof. Mohammed Magaji, NPS Judge; and Mrs. Anne-Marie Palmer-Ikuku, Ag. Mgr Corporate Communications & Public Affairs during the announcement of winners for the 2022 edition of the prize…on 14th Sep 2022 in Lagos.
Left-Right: Ms. Funke Opeke, 2022 The Nigeria Prize for Science (NPS) Judge; Prof. Christian Agbo, Chairman, Panel of Judges; Prof. Barth Nnaji, Chairman, Advisory Board, NPS; Mr. Andy Odeh, NLNG’s GM, External Relations & Sustainable Development; Prof. Mohammed Magaji, NPS Judge; and Mrs. Anne-Marie Palmer-Ikuku, Ag. Mgr Corporate Communications & Public Affairs during the announcement of winners for the 2022 edition of the prize on Wednesday 14th September 2022 in Lagos.

While commending the winners for the big feat, Mr. Odeh called on all past winners of the prize to synergize and become a think-tank that can generate and sustain the flow of ideas, innovation, and scientific advice to the public and private sectors, adding that this will make scientific ideas and innovations beneficial to Nigerians, thereby helping to build a better Nigeria, in line with NLNG’s vision.  

He stated further that the winning works have the potential to significantly impact the country’s food security positively, guaranteeing a stable, efficient, and sufficient system of food production.

Referring to the judges’ report, Professor Nnaji said the work(s) addressed food security which is a key component of our national agenda. “At the global level, Goal 2 of the Sustainable Development Goals (SDGs) seeks sustainable solutions to end hunger in all its forms by 2030 and to achieve food security. This entails improving the productivity and incomes of small-scale farmers by promoting equal access to land, technology and markets, resilient agricultural practices, and sustainable food production systems”, he stated.

Professor Nnaji said the choice of the judges reflects a multi-disciplinary approach relevant to the theme in focus. He added that “the advisory board is particularly pleased that in evaluating the entries, the judges upheld the objectives of the prize which seeks to identify and promote excellence in utilizing scientific knowledge for the achievement of desired solutions”.

Muhyideen Oyekunle and Shehu Ado’s work on “Gains in Grain Yield of Released Maize (Zea Mays L.) Cultivars under Drought and Well-Watered Conditions” provides us with a unique opportunity. The maize seeds they selected courtesy of the breeding program have been tested to be high-yielding and water stress tolerant. The hybrids they selected record yields of 1.73-2.51 t/ha in stress areas and 5-6 t/ha in areas with good rainfall distribution in farmers’ fields.

Sesan Peter Ayodeji and Emmanuel Olatunji Olatomilola’s work on “Development of Process Plant for Plantain Flour” is important for reducing spoilage of farm products and packaging for distribution as well as a value addition for farm products. It is resourceful in scaling up from batch production to industrial-scale continuous flour production relevant beyond plantain to other food items.

Two Scientific Works Win The Nigeria Prize For Science, 2022

He commended the Board and Management of Nigeria LNG for instituting, sponsoring, and sustaining what is arguably the biggest Science Prize in Africa.

Winners of this year’s edition of the prize are Muhyideen Oyekunle, a Maize Breeder and Lecturer at the Institute for Agricultural Research (IAR), Ahmadu Bello University, Zaria, Nigeria, and his colleague Prof Shehu Garki Ado, an agricultural expert, eminent academic, and researcher of international repute. He is a professor of Genetics and Plant Breeding and is currently the vice-chancellor of Al-Qalam University Katsina.

Professor Sesan Peter Ayodeji is a professor of Machine & Process Design and Applied Ergonomics at the Federal University of Technology, Akure, and his colleague is Emmanuel Olatunji Olatomilola.

The decision on the winning entries was reached by a panel of judges, led by Professor Christian Ugwu Agbo. Professor Agbo is a professor in the Department of Agriculture at the University of Nigeria, Nsukka. Other members of the panel are Ms. Funke Opeke and Prof Mohammed Magaji. Ms. Opeke is an experienced telecommunications executive and the founder/CEO of MainOne while Professor Magaji is a professor of Agronomy at the Usmanu Danfodiyo University, Sokoto.

For the Advisory Board of the NigeriaPrize for Science, in addition to Professor Nnaji, are Chief Dr. Nike Akande, a two-time minister and former President of Lagos Chamber of Commerce and Industry; and Professor Yusuf Abubakar, a professor of Animal Breeding and Quantitative Genetics and the Coordinator of Agriculture Group, R & D Standing Committee, at the Tertiary Education Trust Fund.

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Shell Enters $1bn LNG Sales Agreement With ZIM

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Industry Regulator Applauds Shell For Investing In Nigerian Gas Infrastructure

Oil major, Shell has entered into a 10-year marine liquefied natural gas (LNG) sales and purchase agreement with an Israeli container shipping company ZIM, valued at more than $1 billion.

The LNG is intended for 10 LNG-fueled vessels that will be deployed on ZIM’s flagship ZIM Container Service Pacific (ZCP), on Asia to USEC trade.

These ten 15,000 TEU vessels are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to US East Coast and the Caribbean. The vessels have been chartered by Seaspan Corporation. The charter agreement, announced in February last year is also valued in excess of one billion dollars.

The construction of the vessels has already been launched with South Korean shipbuilder Samsung Heavy Industries (SHI) completing the keel-laying for Sammy Ofer dual-fuel containership at its Geoje yard.

On the basis that LNG emits ~20 per cent less GHG emissions when compared to conventional marine fuels, using LNG on these 10 ships is equivalent to having two out of the 10 vessels in the fleet with zero emission, ZIM said in a statement.

“With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners.

“We are pleased to execute this long-term supply agreement with Shell to secure LNG at competitive terms and look forward to partnering with a global industry leader such as Shell as we take an important step to ensure our fuel sourcing is well planned and of the highest quality,” said Eli Glickman, ZIM President & CEO.

“We are delighted to collaborate with ZIM on their impressive efforts to reduce emissions in their maritime supply chain. Decarbonisation of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes, and via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions,” said Executive Vice President, Steve Hill,  Energy Marketing at Shell.

The agreement with Shell may also cover other trades where ZIM LNG vessels could be deployed, ZIM said.

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