Seplat Back in Profit, Expects Gas Growth
Nigerian indigenous oil and gas producer Seplat has turned loss to profit in first half 2018 and has outlined its plans to expand gas sales and production.
The London and Lagos-listed independent reported July 30 a 1H2018 profit after tax (but before deferred tax) of $105mn, which compared with a loss of $28mn in 1H2017. Net profit for 1H2018 was $49mn. First half 2018 revenues were 160% higher year on year at $343mn, and of those gas revenues at $85mn accounted for 25% of the total and were up 57% year-on-year.
Net production, including gas, was up 94% at 51,099 barrels of oil equivalent/day (boe/d), and comprised 25,286 b/d liquids and 155mn ft3/d gas. The average gas price was 2% higher at $3.04/‘000 ft3.
Seplat said it continued to supply commissioning gas to the third-party 459-MW Azura independent power plant (IPP), having begun to do so in December 2017. Upon its full commissioning, expected in 3Q, deliveries will move to the contracted level of 116mn ft3/d gross on take-or-pay terms. It said it is in talks with various firms about new gas sales that could take gross gas production to 400mn ft3/d.
It also said that it is proceeding towards a final investment decision, expected 4Q2018, at its ANOH gas and condensate development at Nigeria’s OML 53. It said the final investment decision was originally planned by June but was delayed because of “the need to ensure the internodal aspects of the project between the upstream and the midstream are sufficiently de-risked”.
ShoreCan taps Trafigura for financing
Separately, Calgary-based Canadian Overseas Petroleum Limited (COPL) said July 30 that its 50%-owned joint venture in Nigeria, Shoreline Canadian Overseas Petroleum (ShoreCan), has received and agreed to a $30mn to $50mn project financing from Trafigura and the Mauritius Commercial Bank, for ShoreCan's investment into its 80%-owned affiliate Essar Nigeria and its oil project on OPL226. The term sheet provides for Essar Nigeria to enter into a crude oil supply arrangement with Trafigura. Financing is subject to execution of a formal definitive binding agreement between the parties.