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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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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 Appoint Three Directors To The Board

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

Olushola Okunlade Writes

The Board of Directors of Seplat Energy Plc today announces the appointment of Mrs. Bashirat Odunewu as an Independent Non-Executive Director of the Company, Mr. Kazeem Raimi as a Non-Executive Director, and Mr. Ernest Ebi as a Non-Executive Director.

The three appointees will be joining the Seplat Board with effect from 18th May 2022.  

Mrs. Bashirat Odunewu (Independent Non-Executive Director) is a Banking and financial expert with about 30 years of experience in the Finance and Banking Industry. Up till June 2021, she served as C-Suite executive, corporate banking (Energy, Natural Resources & Infrastructure), at First Bank Nigeria Ltd, prior to which she was the line executive for their international banking group where she supervised CEOs of the subsidiaries of First Bank in 6 African countries as well as the Bank’s representative office in China and served as a board member for several of them. She is a business development veteran, well versed in business strategy with over 10 years of hands-on experience at the C-suite Executive Management level, an alumnus of Imperial College (University of London) and the University of Manchester. Bashirat is a Chartered accountant (FCA) and a certified member of the Chartered Institute of Arbitrators-UK (MCIArb). She is also a member of various reputable professional associations including the Chartered Institute of Bankers Nigeria (CIBN) and the Institute of Directors (IoD). Bashirat currently serves as an INED on the board of Leadway Holdings and Non-Executive Director (NED) on the Boards of some African Subsidiary Banks of First Bank Nigeria.    

She is an Independent NED on the Board of Neimeth International Pharmaceuticals Plc (an NGX quoted company) and is also a member of the Board of Directors for the Franco-Nigeria Chamber of Commerce and Industry where she serves as the Treasurer.  

Mrs. Odunewu has experience spanning audit/accounting, corporate & commercial banking, Investment banking, and treasury in various financial institutions. She has specialized in Oil and Gas financing projects and led notable successful syndications for acquisitions and development. She has been the recipient of several Merit Awards in the organizations she has worked in recognition of her stellar performance. Mrs. Odunewu is passionate about supporting younger ones in fulfilling their aspirations and is a mentor/sponsor to many in this regard.

Mr. Kazeem Raimi (Non-Executive Director) is a nominee of Platform Petroleum Limited replacing Mr. Austin Avuru who stepped down from the Board of Seplat Energy on 1st March 2022. Mr. Raimi is presently the Executive Director, Commercial for Platform Petroleum Limited. Previously with Seplat Energy as General Manager, Commercial, Mr. Raimi was charged with the responsibility for driving commercial, economics, valuation, planning, and treasury activities across the entire organization. He also served previously as Manager, Corporate Planning and Economics at Seplat Energy.

Mr. Raimi has extensive experience in project economics and risk analysis has been Lead Petroleum Economics and Commercial Advisor at  Addax Petroleum Nigeria where he also served in different capacities. Prior to this, Mr. Raimi served as Treasury Manager at Cadbury Nigeria Plc and Finance Analyst at Citibank Nigeria Limited. He had significant involvement in commercial and economic evaluations of new ventures, farm-in, and company acquisition opportunities with a thorough appreciation of tax, fiscal issues, and project economics especially as they relate to Nigeria, Gabon, Iraq, and Cameroon. In addition to his role at Platform Petroleum Limited, Mr. Raimi also serves as a Non – Executive Director at PNG Gas Limited and Ase River Transport Company Limited.

Mr. Raimi holds a First-Class Honors in Economics from the University of Ibadan, an MSc in Oil and Gas Economics from the University of Dundee, and has undertaken several courses at Harvard Business School.

Mr. Ernest Ebi (Non-Executive Director) is a nominee of Shebah Petroleum Development Company Limited (BVI) replacing Dr. A.B.C Orjiako who will step down from the Board of Seplat Energy on 18th May 2022 after the Annual General Meeting. Mr. Ebi is an executive whose vast experience in the banking and finance industry spans over four (4) decades. From June 1999 to June 2009, he was appointed as a Deputy Governor at the Central Bank of Nigeria, Nigeria’s apex bank, where he covered policy and corporate services portfolios. Prior to this, Mr. Ebi held several executive positions in the banking industry in Nigeria and the United States of America. He was the Deputy Managing Director in Diamond Bank Ltd where he led the bank’s financial services marketing strategy & initiatives for new business development among others. In 1995, he was appointed by the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation as the Managing Director & CEO of New Nigerian Bank Plc. During his time at New Nigerian Bank Plc., he was responsible for the development and implementation of a credible turnaround plan for the bank and contributed significantly to the recovery of a huge portfolio of non-performing risk assets. Mr. Ebi has also held senior positions at the International Merchant Bank, as the Assistant General Manager (credit & marketing department) and Assistant. General Manager (Loan Review & Audit).

Mr. Ebi served as the Board Chairman of Fidelity Bank Plc (2016 – 2020) and AIICO Pension Managers (2010-2021) and currently serves as an Independent Director on the Board of Dangote Cement Plc., Julius Berger Nigeria Plc., Coronation Capital Ltd, and Coronation Asset Management Ltd.

Mr. Ebi is also a Fellow, Chartered Institute of Bankers, FCIB and Fellow, Institute of Directors Nigeria (F.IOD). Mr. Ebi has a very distinguished career within the Banking and financial services industry and has undertaken several leadership courses at Harvard Business School and Oxford Said Business School. He was awarded the National Honour of Member of the Order of the Federal Republic (MFR) by the Federal Government of Nigeria in 2007 in recognition of his meritorious service

Commenting on the appointments, Dr. A. B. C. Orjiako, Chairman of SEPLAT Energy said:

“The Board of SEPLAT Energy is pleased to welcome Mrs. Bashirat Odunewu, Mr. Kazeem Raimi, and Mr. Ernest Ebi. They are excellent professionals with a wealth of experience spanning over decades. SEPLAT Energy eagerly looks forward to the enormous contributions they will make towards achieving global success.”

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SPE, NCDMB Hail Dangote Petroleum Refinery’s World-Class Technology Application

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SPE, NCDMB Hail Dangote Petroleum Refinery’s World-Class Technology Application

Olushola Okunlade Writes

The Society of Petroleum Engineers (SPE) and the Nigerian Content Development and Monitoring Board (NCDMB) have applauded Dangote Petroleum Refinery for its application of world-class technology in the construction of the 650,000 barrels per day refinery project. 

The two associations, which leaders were on a tour of the petroleum refinery project recently, expressed the belief that the refining facility is capable of redefining Nigeria’s domestic fuels production. 

They also said that the completion of the gigantic project will secure the future of young engineers in Nigeria and put them on par with their counterparts in the global oil and gas industry. Speaking after the tour of the refinery and petrochemical projects, the National Chairman of SPE, Prof. Olalekan Olafuyi, disclosed that the visit was necessitated by the need for members to see the reality of the massive project. 

According to him, “much has been heard and written regarding the refinery. Coming here has given us the opportunity to see the level of construction works, application of world-class technology, and massive equipment which is new to the Nigerian downstream oil and gas industry

“We have heard before about Dangote Petroleum Refinery and have also seen that the project is for real. After touring the refinery, we are amazed by the level of work that has already been done and we are eagerly waiting for its completion. We are happy with what we have seen. Dangote is doing a great job with the construction of a world-class petroleum refinery. It is remarkable that a Nigerian company is building a world-class project.” 

SPE, NCDMB Hail Dangote Petroleum Refinery’s World-Class Technology Application
Left-Right: Secretary of The Society of Petroleum Engineers (SPE) / Chairperson Lagos Section of SPE, Fanyama Okoli; Chairman of The Society of Petroleum Engineers (SPE), Prof. Olalekan Olafuyi; AGM Training, Development & Stakeholders Relationship Management, Dangote Oil Refinery Company Limited, Dr. Ebele Oputa; Director of Planning Research & Statistics, Nigerian Content Development & Monitoring Board, Patrick Obah, during the visit.
SPE, NCDMB Hail Dangote Petroleum Refinery’s World-Class Technology Application
Left-Right: AGM Training, Development & Stakeholders Relationship Management, Dangote Oil Refinery Company Limited, Dr. Ebele Oputa; Chairman of The Society of Petroleum Engineers (SPE), Prof. Olalekan Olafuyi; Director of Planning Research & Statistics, Nigerian Content Development & Monitoring Board, Patrick Obah, and Managing Director, Dangote Industries Free Zone Development Company (DIFZDC) Yinka Akande (right) during the visit
SPE, NCDMB Hail Dangote Petroleum Refinery’s World-Class Technology Application
Cross section of the delegates and Dangote staff.

Speaking also at the event, Director of planning Research & Statistics, Nigerian Content Development & Monitoring Board, Patrick Obah stated that the Dangote refinery which is Africa’s biggest oil refinery and the world’s largest single-train facility is contributing to the implementation of the Nigerian Content Policy through its engagement of Nigerian engineers. 

Obah said: “It is awesome that this kind of project is happening here in Nigeria.  For the first time, I saw a tank that could hold 120 million liters of liquid at the Dangote Petroleum Refinery plant. We are indeed happy that we have this kind of facility here in Nigeria. The visit is very enriching for members of the Society of Petroleum Engineers and the Nigerian Content Board.  

“There is no doubt that the project gives inspiration to all visitors who come on a tour of the refinery. The refinery plant gives a lot of hope to Nigerians.  It is important for us to grow local capacity that will be able to fit into the energy demand of tomorrow.” 

He, therefore, commended the Dangote Group for investing massively into the country’s oil and gas industry. Managing Director. Dangote Industries Free Zone Development Company (DIFZDC), Yinka Akande said that Dangote Refinery has continued to provide employment for Nigerians.

Akande said that Dangote will continue to promote the development of the Nigerian Downstream oil and gas industry. He thanked members of the two associations for coming to tour the massive Refinery project and Petrochemical projects.

Earlier while welcoming guests to the site, the AGM, Learning & Development & Stakeholder Relationship Management Dangote Projects, Dr. Ebele Oputa, stated that the company is dedicated to the training of young Nigerian engineers in Refinery Operations oversea and within the country. 

She told the visitors that some young engineers employed by Dangote Petroleum Refinery are currently pursuing a various doctorate and masters’ degrees in some reputable universities in Nigeria, noting: “We target to train over 900 young graduates who are expected to operate the Refinery at completion. Another 10 Mechanical Engineers have also been trained at the General Electric University in Italy. 50 Process Engineers have received training from Honeywell/UOP for six months; 50 Management Trainees have completed their training in the Dangote business.  Currently, six graduates have been selected across the six geopolitical zones in conjunction with NCDMB and taking the MSc and/or Ph.D. at Ahmadu Bello University, Zaria for Research & Development in Zeolites ZM5in”, she adds

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