Seplat Assembles Plant To Produce 525mmscfd of Natural Gas Daily

Exploration and production (E&P) company, Seplat, has kicked off the assembling equipment for the expansion of its Oben Phase 11 plant to increase natural gas plant to produce 525 million standard cubic feet daily.

The independent oil firm, completed the expansion of the Oben gas plant phase last year. The expansion raised the company’s overall processing capacity from about 150mmscf/d to 300mmscf/d.

Seplat Chairman, ABC Orjiako confirmed the expansion plan when he addressed shareholders at the firm’s annual general meeting in Lagos.

“The Oben gas plant phase II expansion is underway with additional processing modules ordered. Once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 mmscfd,”he said.

Orjiako said the company’s management, despite the headwinds facing the oil and gas industry, made progress on all aspects of its strategy delivering best-in-class production and reserve growth.

“We were able to transform our gas business, which achieved 185 per cent year-on-year growth,” he said.

He added: “In a significant step forward for its gas business, during mid-year 2015, Seplat successfully completed and commissioned the Oben gas plant phase I expansion. This expansion saw the company’s overall gross processing capacity double to 300mmscfd.

“Alongside the significant increase in gas production, the positive2 financial impact of Seplat’s gas business was evident as revenues from gas sales increased to 185 per cent year-on-year to $77 million.”

“Our (Seplat’s) position as Nigeria’s leading independent E&P company has been reinforced in the past 12 months during which we delivered on corporate performance target despite the oil price volatility. Our resilience is testament to the quality of our business, our strategy, our management team and staff, and our adherence to strong corporate governance policies.”

Seplat’s Chief Executive Officer CEO, Austin Avuru said the company’s corporate governance stance and transformation initiatives helped to shield it from being heavily impacted by the global low oil price regime. He noted that the company recorded growth in oil and gas production, but lamented the renewed attacks on oil and gas facilities by the Niger Delta militants. The attacks have led to shutting of Shell’s Forcados terminal a few times, which resulted in shut-in of Seplat’s output.

According to Avuru, the Forcados frequent closures have affected the 2016 financial year projections.