Nigerian Independent Seplat Back in the Black for Q3
Nigerian independent Seplat returned to profit in Q3 2017, according to its results published October 23.
It made an operating profit of US$40.9mn for the quarter, compared with an operating loss of US$11.7mn in the year-ago quarter. Net profit was US$22.3mn (compared with a year-ago net loss of $36.6mn). In Q2 2017 it made an operating profit but a net loss.
Seplat said that its gas business is expanding, with the January-September 2017 period up 11% year on year at US$85.9mn and during Q3 achieved a peak daily output of 352mn ft3/d.
It said also that new gas sales agreements are being agreed to increase offtake and diversify counterparties. It said that progress had been made between Seplat and the Nigerian government to deliver the 300mn ft3/d “Anoh” gas process plant, with a final investment decision by Seplat expected in the next three to six months.
Thanks in part to the removal of force majeure on the Forcados terminal in early June, Seplat's Q3 working interest production was within its guided range. Full-year working interest production guidance of 17,000 to 19,000 b/d and 105-115mn ft3/d (or 35,000 to 38,000 barrels of oil equivalent per day) is maintained.
The average gas price was slightly lower at US$3.01/'000 ft3 for the first nine months of this year, slightly below its US$3.03/'000 ft3 in the year-ago period.
Mark Smedley