Seplat and Waltersmith Signed Crude Oil Purchase Agreement

Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, has signed a Crude Purchase Agreement (CPA) with Waltersmith Petroman Oil Limited (Waltersmith).

According to the statement issued by Seplat, the agreement is for the supply of between 2,000 and 4,000 bopd from existing working interest production from the Ohaji South Field within OML53, for Waltersmith’s new 5,000 bopd modular refinery at Ibigwe Field, in Imo State.

Also, read Waltersmith’s 5,000bpd Modular Refinery in Imo State to Commence Operations

Seplat said its share of Ohaji South crude was mainly evacuated by third-party crude to export terminal. However, with the new agreement, Seplat will sell its crude oil directly to Waltersmith for refining, therefore, reducing crude losses and downtime experienced along  evacuation and export route.

Roger Brown, Chief Executive Officer of Seplat, said: “We are delighted to sign this Crude Purchase Agreement with Waltersmith as it ensures that Nigerian crude will be refined locally by a Nigerian refiner. The agreement will eliminate losses we previously experienced on the export pipeline, meaning more revenue will be booked by Seplat for the same amount of oil produced from the field. Waltersmith’s refinery will also benefit the Nigerian economy by creating local jobs to refine our oil.”

Also, the agreement will boost the capacity of Waltersmith in providing its products particularly to the immediate region of our operations thereby supporting Seplat’s commitment to national energy security.