- Seplat Boosts Gas Production as Oil Export Suffers
A major Nigerian independent oil and gas exploration and production firm, Seplat Petroleum Development Company Plc, said its gas revenues increased by 37 per cent last year, even as its oil production was curtailed by the shutdown of the Forcados terminal.
The company attributed the increase in its gas volume to the new Oben gas processing facility installed mid-year 2015, with a processing capacity of 150 million standard cubic feet per day.
The Chairman, Seplat Petroleum Development Company, Dr. Ambrose Orjiako, said on the sidelines of the company’s Annual General Meeting in Lagos on Thursday that the shut-in of the Trans Forcados Pipeline, the main route for the company’s exports, impacted the volume of oil production amid low prices.
“During this period, we quickly adapted and started exporting some of our production through the Warri refinery. Another thing we did was to quickly expedite action on our gas development and commercialisation strategy, and that meant that quite a lot of revenue now came from gas,” he said.
Orjiako said the company was able to increase its gas processing capacity to over 500 million scfpd and gas production to 300 million scfpd.
The company’s gas revenues increased to $105.5m last year, compared to $76.9m in 2015, driven by a 19 per cent increase in the average realised gas price to $3.03 per 1000 scf from $2.55/mscf in 2015, and an 11 per cent increase in working interest production to 95 million scfpd from 86 mmscfd in 2015.
Seplat said the shut-in and declaration of force majeure at the Forcados terminal by the operator, Shell, saw its average daily production fall from 52,000 barrels of oil equivalent per day by mid-February 2016 to 25,877 boepd by year end.
It said oil revenue fell by 55 per cent from $570m in 2015 to $254m in 2016, while the total volume of crude lifted in the year was 3.422 million barrels compared to 8.129 million barrels in 2015.
The firm explained that the decline in its gross profit to $72m from $249m in 2015 reflected the shut-in of the Forcados terminal, resulting in lower production, lower oil price realisation and higher costs associated with the alternative export route to the Warri refinery.
It stated that it posted an operating loss of $158m in 2016, compared to an operating profit of $158m a year earlier, adding that included in the loss was a charge of $101m relating to unrealised foreign exchange losses principally on amounts owed by its joint venture partner, the Nigerian Petroleum Development Company.
The Chief Executive Officer, Seplat, Mr. Austin Avuru, said, “While force majeure at the Forcados terminal has materially affected our oil production, I am particularly pleased to see the growth in our gas business, which in 2016 exceeded the $100m revenue milestone demonstrating its robustness and providing a solid base from which to grow.
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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