SEPLAT Petroleum Development Company has said its gas revenue grew by 51 per cent in the financial year ended December 31, 2014.
This was indicated in the company’s annual report and accounts for the period under review.
The Chief Executive Officer (CEO) of the company, Austin Avuru said that gas commercialisation strategy is a key revenue driver for the company,
“We see the commercialisation and monetisation of Nigeria’s natural gas resource as an attractive long-term opportunity as we seek to go beyond our domestic supply obligations by selling to commercial ventures in Nigeria, such as power generation plants. Pursuant to the Nigerian Gas Master Plan 2008, Nigeria is currently undergoing significant changes in the domestic gas pricing environment which has resulted in increased gas demand and improving pricing dynamics,” he said.
Speaking at the post-Annual General Meeting, he said that the company concluded a 10 day tie-in on its Oben plant to enable the company have a single homogenous plant consisting two by 45 Million Standard Cubic Feet of Gas Per Day (MMSCF/D) WAGP specification gas post-commissioning, from the Oben node.
Mr. Avuru disclosed that the facility expansion and upgrade will bring the company’s overall daily gas production capacity to slightly over 300 mmscf/d.
“We have materially grown our reserves base, delivered full year average daily production in line with guidiance and exceeded peak rate objectives. Expansion plans for our gas business gathered pace and the new Oben gas processing plant will allow us to increase supply to the domestic market,” he added.
Corroborating, the Chairman of Seplat also harped on the company’s gas commercialisation policy. According to him, “We have made successful efforts in our gas development strategy by the expansion of our gas processing facility in Oben. This is against the back drop of the Nigerian gas to power transformation agenda which has occasioned increasing gas demand at good prices in the domestic market. Seplat will take advantage of this to boost revenue from gas in 2015 and in the coming years.”
He also said that despite reaching record levels of peak oil production on Oil Mining Licence (OMLs) 4, 38 and 41 in December 2014 of over 76,000 bopd, revenue declined from US$880 million in 2013 to US$775 million in 2014 showing a decrease of 12 per cent.
Orjiako added that the decrease is due to significant outages on the Trans-Forcados System as well as the impact of the reduction of the global oil price in the second half of 2014.
The company proposed a dividend of $0.15 per share for 2014, up from $0.10 in 2013.

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