Seplat Energy Reports 10.21% Surge in Gas Revenue to $63.7 Million in 1H 2023

Seplat Energy Plc, an Indigenous energy company, reported a 10.21 percent increase in gas revenue to $63.7 million in the first half of 2023. This was more than the $57.8 million reported in the corresponding period of 2022.

According to the company’s unaudited financial statement issued released on Monday, the surge in gas revenue was due to high gas prices and an upswing in sales volume.

In the period under review, the average realized gas price increased by 4.4 percent to $2.87 per thousand cubic feet (Mscf) while gas production expanded moderately by 1.4 percent to 21.6 billion standard cubic feet (Bscf) compared to the 21.3 Bscf registered in the initial half of 2022.

On its outlook for the remaining part of the year, Seplat Energy said, “Our group production performance has improved in 2023, thanks to greater uptime on OML 40 and reduced losses on our Western Asset. We maintain our 2023 guidance range at 45,000-55,000 bpd, which we are confident of meeting, given year-to-date production and the expected benefit of new well stock as it becomes available in the latter part of the year.

“We stress that our guidance does not include any expected contribution from Mobil Producing Nigeria Unlimited or ANOH projects. Our capital expenditure guidance for 2023 is adjusted to a range of $160-190m. Our commitment to meeting the planned drilling targets remains steadfast, and we have a drilling plan in place to meet these targets in 2H 2023.”

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In the first half, Seplat Energy reported an average working interest gas volume of 119.4 million standard cubic feet per day, marking a positive advancement from the 117.7 MMscfd recorded in the initial half of 2022. This increase was due to improved well performance and the presence of efficient routes for condensate evacuation.

The company also announced a fresh Gas Sales Agreement with a major bulk gas supplier, including a substantial volume of 50 million standard cubic feet per day (MMscfd).

“We are also actively working on securing third-party gas to feed both the Oben and Sapele gas plants. The execution of the plan for separating the midstream business from the upstream operations has progressed according to schedule. We have completed the internal transfer of midstream assets to Seplat midstream company.

“Additionally, we have issued notices to our joint venture partners and relevant regulators to inform them of these developments. We will continue to keep the market updated on the progress of this separation process,” Seplat added.