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Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

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Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

…’ Seplat Energy has an enormous chance to explore renewable energy solutions’

… Divestment opportunities abound for Seplat Energy, others

Olushola Okunlade Writes

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, as well as other energy producers in Africa, is projected to grow more given the rising demand for energy in Africa. Africa’s energy demand is also expected to see increased growth over the decade amidst current realities.

Global management consulting firm, McKinsey & Company disclosed this at the Seplat Industry Lecture and Dr. ABC Orjiako send forth event held in Lagos at the weekend.

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

“There will be rising demand for fossil fuels in Africa driven by industrialization and population growth. Energy demand growth will be led by Nigeria, and this will create tailwinds for energy suppliers like Seplat Energy,” Oliver Onyekweli, Associate Partner and Co-Lead of West Africa Oil and Gas Practice, McKinsey & Company, said whilst making a presentation on the theme of the Lecture dubbed “The Future of African Oil & Gas: Positioning for the Energy Transition”.

“Africa’s growing energy demand also creates opportunities for Seplat to explore renewable energy solutions (e.g. solar, blue hydrogen),” he added.

Decarbonizing production and cost leadership, McKinsey explained, will be key going forward as capital providers continue to reduce exposure to oil and gas, with customers preferencing lower carbon shipments. Decarbonization of assets to the greatest possible extent, it added, will be needed to maintain “license to operate” and maintain access to capital at attractive rates. “As global oil demand peaks, maintaining cost leadership ($/bbl) will be increasingly vital.”

Indigenous producers will define the future of African oil and gas, as IOCs will continue to face pressure to reduce carbon-intensive operations and lower the cost of production, according to McKinsey, which also maintained that divestment is likely to continue.

“Companies like Seplat Energy are well-positioned to pick up producing assets going forward, provided they can maintain operational excellence. Ensuring continued access to talent will be key,” it added.

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

McKinsey further explained that “African energy infrastructure is a compelling opportunity. As the energy transition accelerates, gas will become more prominent as a “transition fuel”, especially in Nigeria. Significant domestic gas demand is a positive tailwind for Seplat Energy’s ANOH project and gas’ cleaner carbon profile (relative to diesel) should make gas projects easier to finance (can be paired with LPG). Investing in gas export infrastructure (e.g. FLNG) could create an opportunity to access high-value international spot market.”

Dr. ABC Orjiako, the Pioneer and immediate past Chairman of Seplat Energy, lauded all the company’s stakeholders for the huge successes recorded so far in the company since its inception, saying they were products of hard work, sleepless nights, and resilience.

Commending all stakeholders of Seplat Energy for the great achievements recorded so far, the Chairman, Seplat Energy, Mr. Basil Omiyi, said the year 2022 marks a major turning point for Seplat Energy as Dr. Orjiako retires from the Board after leading the Company to achieve monumental milestones over the last 13 years, including 9 years as a listed entity.

Notable amongst the achievements he listed were, the IPO vision, the listing, production growth, reserve addition, corporate governance, landmark acquisitions, funding strategy, and setting the stage for corporate transformation, amongst others.

In his remarks, the CEO of Seplat Energy, Mr. Roger Brown, said  Dr. Orjiako drove Seplat Energy’s long-term imperative with regards to global transition away from fossil fuels towards cleaner and renewable energies, advocating a Just Transition, which is to be conducted at an appropriate pace.

That, according to Brown, was why, the Board under Dr. Orjiako decided to re-brand the Company as Seplat Energy, which is a signal of “our intent and how we see our future”.

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Savannah Energy Signs New Gas Sales Agreement with Notore Chemical Industries PLC

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Savannah Energy Signs New Gas Sales Agreement with Notore Chemical Industries PLC

By John Meze

Savannah Energy PLC, the British independent energy company focused on the delivery of Projects that Matter in Africa, has announced that the Company’s 80% indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement (“GSA”) with Notore Chemical Industries PLC (“Notore”).

Accugas will supply Notore with up to 10 MMscfpd of gas to augment its current supplies. The contracted supply is on an interruptible and reasonable endeavours basis, based on gas availability and nominations, for an initial term of one year, with the option to extend for a mutually agreed period. Notore’s fertilizer production plant is connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi and no further tie-in or capital expenditure is required by Accugas to deliver gas to Notore.

Notore Chemical Industries PLC, formerly Notore Chemical Industries Ltd, is a Nigeria-based integrated agro-allied, chemicals and infrastructure company located in the Onne Oil and Gas Free Zone area of Rivers state in southern Nigeria. Notore’s primary business is the production of urea, ammonia, and NPK blend fertilisers and sale to the Nigerian and international markets. Notore’s facility has a production capacity of 1,500 metric tons (MT) per day of urea and 1,000 MT/day of ammonia.

Andrew Knott, CEO of Savannah Energy, said: “I am pleased to welcome Notore as a new gas customer to Accugas, representing our tenth customer site in total (versus three at the time of our acquisition of the Accugas business in 2019). We look forward to developing our working relationship with Notore over the course of the coming months and years.

Savannah Energy PLC is an AIM-quoted British independent energy company focused on the delivery of Projects that Matter in Africa and is active in Cameroon, Chad, Niger, and Nigeria.

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Bonny Light Energy Offshore Set To Supply 60m Litres Aviation Turbine Kerosene

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Bonny Light Energy Offshore Set To Supply 60m Litres Aviation Turbine Kerosene

By John Meze

In an effort to ameliorate the aviation fuel supply disruption to the aviation industry, Nigeria’s emerging indigenous oil and gas major, Bonny Light Energy  Offshore Limited, has agreed to the supply of 60,000,00 0 litres of Aviation Turbine Kerosene (ATK) in the next six months.

This projected supply aligns with the pressing need for an increased supply of the much-needed fuel to sustain flight operations for millions of travelers in the country.

Speaking on this commitment, Mr. Toyin Banjo, Chief Executive Officer, Bonny Light Energy, and Offshore Limited, stated that the company’s response aligns with the company’s desire to salvage the Nigerian aviation sector from the daunting effects of the fuel shortage that is ravaging the global airline industry.

“The aviation industry is one of the most energy-intense sectors in the global economy regarding its consumption metrics. Unfortunately, as the industry began recovering from the COVID-19 pandemic-inspired slump in the global aviation sector, external pressures such as the Russia-Ukraine war have driven a sudden hike in fuel prices worldwide, which has resulted in a shortage of aviation fuels, thereby leading to this national aviation crisis.

“This is where our contributions come in. We are aware that Nigeria must build on its reputation of having a stable aviation industry, especially as it is the economic hub of Africa. However, as we have seen in recent times, global constraints can plunge our local aviation sector into a supply crisis despite Nigeria’s oil-rich status.

“As a responsible organisation with an understanding of the intricacies of international energy supply dynamics underpinned by our local knowledge of the Nigerian aviation space, we are committing a total of 60,000,000 litres of aviation turbine kerosene (ATK) monthly over the next six months.

“All things being equal, we are envisaging a supply of 60,000,000 litres of ATK, by the end of the year. We strongly believe that this corporate action will positively affect the supply crisis in Nigeria’s aviation industry and provide much-needed relief in the already strained sector.

“We, however, understand the complexities of the global aviation industry, as well as the existence of numerous factors which may impede the fulfillment of our projection. Some of these constraints include the paucity of foreign exchange, poor competitive currency lines by banks to support importers and marketing companies, and high logistics costs for transshipment or trans-loading of time-critical products.

“Despite these factors, we will continue in our strides, having supplied the market with similar volumes in the last quarter, ensuring that the projected volumes are achieved as an enduring solution to this supply gap in our aviation industry, especially in the imminent Ember Months and the electioneering season,” he further stated.

Bonny Light Energy and Offshore Ltd is an emerging corporation in Nigeria’s indigenous exploration, production, pipeline transportation, strategic storage, and marketing of petroleum products.

Over the years, the company has built expertise in the upstream, downstream, and midstream sectors of the oil and gas industry in Nigeria. It trades in both crude and refined petroleum products, which include Motor Fuels (Gasoline), Industrial Oils (AGO/Gasoil, Baseoil LPG) Aviation Fuels (ATK), Lubricants, and other various specialist oils (Bitumen).
 As a leading integrated Nigerian oil and gas exploration and production company, Bonny Light Energy augments a wide range of energy needs in the economy’s upstream, midstream, and downstream sectors – markets refined petroleum products and provides jetty services.

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Seplat Energy’s MPNU Ministerial Approval Stands, No Withdrawal

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

Olushola Okunlade Writes

Seplat Energy has officially responded to some false reports that the Ministerial Approval of the Company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has been withdrawn.

The company deemed it fit to state categorically that the ministerial appointment stands and there was no withdrawal of any kind at all.

Seplat Energy Plc become aware of a news report claiming that Ministerial Approval of the Company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has been withdrawn on Thursday 11 August 2022.

Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities.

“We will continue to work with all parties to achieve a successful outcome for the proposed acquisition and will provide an update in due course” the company assured.

This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).

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