Nigerian indigenous oil and gas company Seplat Petroleum Development Company Plc, has taken a Final Investment Decision, FID, for Amukpe to Escravos 160,000 barrels of oil per day, (bopd), alternate export pipeline.
This will provide a third export option for liquids production at Oil Mining Licences, OMLs, 4, 38 and 41 and will be coming on stream in the second quarter of 2019, Q2’19.
Speaking during the Company’s sixth Annual General Meeting, AGM, yesterday in Lagos, the Chief Executive Officer of Seplat Petroleum, Mr. Austin Avuru, announced that Seplat board has taken the Final Investment Decision for the ANOH and Amukpe to Escravos alternate export pipeline which will be completed and fully commissioned in Q2 2019.
“These projects are part of the future expansion initiatives of Seplat in Nigeria’s oil and gas industry.
“At our core assets in the West, OMLs 4, 38 and 41, the extension of the license to 2038 means that we can confidently plan and invest long into the future to realise the full potential of those blocks.
“As Seplat continues to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the Final Investment Decision to invest in the large scale ANOH gas and condensate development which will form the next phase of transformational growth for our gas business.
“Disciplined capital allocation continues to remain at the core of our activities evidenced by our continual deleveraging of our debt levels to the current balance of US$350m,” he added.
In his address to shareholders, the Chairman, Seplat Petroleum, Dr. A.B.C. Orjiako, said the company’s 2018 operational and financial performance reflected the significantly higher year-on-year levels of production uptime at its core oil producing assets combined with a firmer, albeit still volatile, oil price and increased contribution from the company’s gas business.
“As you are aware, our results from the previous two years were characterised by the extended period of force majeure at the Forcados terminal from February 2016 to June 2017.
“Seplat will selectively invest in low risk oil production drilling opportunities within the existing portfolio and the continued expansion of the gas business, with 2019 set to be the year that activity intensifies at the large scale Assa-North and Ohaji-South (ANOH) gas and condensate development.
“Seplat remains an ambitious growth-orientated company that is in a position of strength to capture inorganic opportunities where we can leverage our competitive advantages to seek out carefully considered, price disciplined and value accretive acquisitions.