Seplat's Activities Impacting Nigeria's Economy, Domestic Gas Supply
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JUNE 2019 VOL.2 NO.4 www.tbiafrica.com N500, $20, £10 OB3, AKK PIPELINES: ECONOMIC BARU: A TRANSFORMATIONAL PROJECTS – OILSERV BOSS TRANSFORMATIONAL 9TH NATIONAL ASSEMBLY: WHAT HOPE FOR NIGERIANS? ACHIEVER AND REFORMIST SEPLAT’S ACTIVITIES IMPACTING NIGERIA’S ECONOMY, DOMESTIC GAS SUPPLY DRIVING 30% OF ELECTRICITY GENERATION Energy JUNE 2019 2 Energy JUNE 2019 Editor’s Note temporaries. Its operational and safety recently said the nation’s inflation rate standards align with international best increased to 11.40 per cent in May from practices, hence it wasn’t difficult for 11.37 per cent recorded in April, adding the management to take it to local and that the figure was 0.03 per cent higher international capital markets. Today, Se- than the rate recorded in April 2019. plat is the only Nigerian company fully Traffic gridlock in Lagos has become listed on both the Nigerian and London nightmarish and it gets worse by the Stock Exchanges. day as a result of heavy downpour. The Company has continued to strive Will the administration of Babajide to increase reserves and outputs from Sanwo-Olu walk the talk, or will it end its oil and gas blocks. Through its like the toothless bulldog that barks strategic implementation of redevel- without biting? opment work programme and drilling DR. NJIDEKA KELLEY In our political economy column, we campaign, the Company has been able looked at the expectations of Nigerian eplat Petroleum Development to grow production from mere 14,000 from members of the 9th National As- Company Plc has distinguished barrels of oil per day (bopd) to over sembly, highlighting the achievements itself as an outstanding and con- 84,000 bopd. and failures of the 8th Assembly. sistent Nigerian Independent As a responsible corporate entity, Seplat SExploration and Production Company. On the lighter mood, we brought to you answered national call by the Federal how to make your relationship work by Since its establishment in 2009, it has Government to support gas-to-power been in the forefront of promoting making you sexual life more romantic project to take Nigeria out of darkness. and ways to build your self-confidence. natural gas supply for domestic usage The company responded by investing especially to the power sector to boost in the installation of dedicated gas All these and other informative reports electricity supply to Nigerians even production and processing facilities, and discourses are packaged in this when the price was not anything near drilling of gas production wells to edition for your consumption. international market value. meet domestic supply obligations and TBI Africa team welcomes you to the Currently, gas supply from its assets to provide feedstock to power projects 2019 Nigeria Oil and Gas Conference the power sector accounts for 30 per that will help increase Nigeria’s power and Exhibition in Abuja. We wish all cent of Nigeria’s electricity generation. generation capacity. It is in recognition the participants fruitful deliberations. Besides, it has continued to contribute of these contributions to national de- Remember to network well, make new to the development of the economy velopment that TBI Africa editorial team friends and business partners and for through various interventions in the chose to make Seplat our focus for this those visiting Abuja for the first time, education and health sectors, infra- month’s edition. endeavour to explore and enjoy the structure and human capital develop- Also in this edition is the rising con- Abuja hospitality. ment. cern about the increase in inflation The cerebral management team and and how it will affect Nigerians if left board of directors of the company unaddressed. The Central Bank of have, ever since the company’s emer- Nigeria (CBN), the apex regulatory body gence on the oil and gas industry, of banks, also recently expressed fears shown they are thoroughbred entre- that inflation rate may continue to rise preneurs. This underpinned Seplat’s marginally, noting that it will, therefore, current strong balance sheet and prof- continue to tight economic policies. The Dr. Njideka Kelley is also the owner itable production base with a balanced CBN said the country’s inflation may rise and Principal Consultant of mix of oil and gas. to 12 per cent this year before moder- ating. New Generation Consulting LLc, Its corporate governance practice 10101 Fondren Road stance stands it out among its con- The National Bureau of Statistics (NBS) Suite 353, Houston Texas 77076 PRINTED AND PUBLISHED BY: Syndicate Publications Limited (RC: 1368510) #1, Alhaji Shomade Alley Street, Obanikoro, Lagos Website: www.tbiafrica.com. Email: [email protected] Office Tel: 07089620095, 08057363319 EDITOR: Dr. Njideka Kelley, +17182194957, 07086167905. GRAPHIC ARTIST: Imekan Augustus 3 JUNE 2019 CONTENTS SEPLAT’S ACTIVITIES OB3, AKK PIPELINES: IMPACTING NIGERIA’S ECONOMIC ECONOMY, DOMESTIC GAS TRANSFORMATIONAL SUPPLY PROJECTS 5 – OILSERV BOSS BARU: A TRANSFORMATIONAL 51 ACHIEVER AND REFORMIST 10 HOW RISE IN INFLATION MAY AFFECT NIGERIANS 27 35 TRAFFIC GRIDLOCK: WILL EXECUTIVE ORDER DO THE MAGIC? 36 9TH NATIONAL ASSEMBLY: WHAT HOPE FOR NIGERIANS? 41 NIGERIAN AGRO SECTOR: GAPS, CONSTRAINTS AND HOW TO MAKE YOUR SEXUAL PROSPECTS 47 LIFE MORE ROMANTIC 56 4 JUNE 2019 SEPLAT’S ACTIVITIES IMPACTING NIGERIA’S ECONOMY, DOMESTIC GAS SUPPLY •DRIVING 30% OF ELECTRICITY GENERATION Seplat Petroleum Development Company Plc, a leading indigenous independent oil and gas producer, has been at the forefront of promoting natural gas supply for domestic usage especially to the power sector to boost electricity supply to Nigerians. It also contributes to development of the economy through interventions in the education, health sectors, infrastructure and human capital development. In this report, TBI Africa Team takes a holistic look at the company. 5 COVER STORY JUNE 2019 EPLAT is a leading independent SEPLAT is presently the only Nigerian The capital raised allowed SEPLAT to oil and gas producer in the prolific exploration and production (E&P) further implement the Company’s busi- company fully listed on the Nigerian Niger Delta region. It focuses on and London Stock Exchanges. In ness strategy including the acquisition maximising hydrocarbon produc- April 2014, Seplat completed the first of additional blocks. SEPLAT has a strong Stion from its existing assets, acquiring and ever dual listing on both the London reserve base and proven track record and Nigerian Stock Exchanges farming into new opportunities. of converting contingent resources to reserves. The management team has also Since the acquisition of its first blocks, achieved a consistent increase in gross oil mining leases (OMLs) 4, 38 and 41 operated oil production and boasts a and commencement of production in record of value-accretive acquisitions. 2010, the Company has increased oil and gas production and grown reserves in Since making its first acquisition in 2010, every year of operation and it is currently SEPLAT has risen to become a leading in- recognised as a leading Nigerian inde- digenous oil and gas operator in Nigeria. pendent oil and gas operator. Underpin- The Company has increased its produc- ning SEPLAT is a strong balance sheet completed the first ever dual listing on tion and reserves year-on-year and has and profitable production base with a both the London and Nigerian Stock consistently grown revenues and profits balanced mix of oil and gas. Most impor- Exchanges. since it commenced operations. tantly, its corporate governance practice The Company raised US$535 million in an is unrivaled among its contemporaries. Gross operated liquids production at initial public offering that ranked as the OMLs 4, 38 and 41 at the time of acqui- Its operational and safety standards align largest for a sub-Saharan Africa company with international best practices. sition was 14,000 barrels of oil per day since 2008 and the second largest ever (bopd) but through the implementa- SEPLAT is presently the only Nigerian ex- for a Nigerian company, demonstrating tion of a focused re-development work ploration and production (E&P) company the international investors’ appetite for programme and drilling campaign, the fully listed on the Nigerian and London the leading Nigerian oil firm. Company grew this to a peak rate of over Stock Exchanges. In April 2014, Seplat ” 84,000 bopd, representing a six-fold in- •A B C Orjiako, 6 COVER STORY COVEREnergy STORY JUNE 2019 crease and significantly ahead of the peak rate achieved by the previous operator of approximately 56,000 bopd in 1996. Alongside its oil business, the Company has successfully established itself as the pre-eminent supplier of natural gas to the domestic market in Nigeria through substantial investments made in the com- mercialisation, development and moneti- sation of the substantial gas reserves that exist on its blocks. Whilst natural gas was commonly viewed as a by-product from oil production in previous years, SEPLAT was quick to see the opportunity of the increasing impor- tance of natural gas as a key source of energy for Nigeria. The company has responded by investing in the installation of dedicated gas pro- duction and processing facilities and the drilling of gas production wells to meet domestic supply obligations and provide feedstock to power projects that will help increase Nigeria’s power generation capacity. Rather than being the by-prod- uct, natural gas for SEPLAT is a valuable primary commodity in its own right that •Austin Avuru will form a significant