Seplat shifts schedule of first gas from $700m ANOH plant
Owing to some technical delays, Seplat Energy Plc, said it has shifted its schedule of first gas from the $700m ANOH Gas Processing Plant located on (Oil Mining Lease) OML 53 in Imo State to fourth quarter 2023.
ANOH is one of Nigeria’s most strategic gas plant earlier scheduled to pump its first gas in the first half of 2023. Seplat, in a statement on its performance in the 2022 financial year, said that ANOH gas processing plant is now 95 per cent mechanically completed, awaiting third-party infrastructure completion.
“ANOH first gas guidance moved to fourth quarter 2023 owing to delays in third-party infrastructure,” it stated.
Meanwhile, the company said that it will continue to pursue the Presidential approval received on August 8, 2022 for the Mobil Producing Nigeria Unlimited (MPNU) acquisition with hopes to conclude the transaction within the remaining term of President Muhammadu Buhari before a new president is sworn into office at the end of May 2023.
It also stated that the Sibiri appraisal well is indicating results on high side of initial Oil In-Place estimates, adding that Final Investment Decision (FID) is targeted by end 2023.
On the financial gains, Seplat recorded a rise in profit before tax by 15.3 per cent to N86.7b from N71b year-on-year. The company also generated cash from its operations to the tune of N242.4b from N150.9b year-on-year, rising by 51.6 per cent.
The energy company also grew its revenue by 29.8 per cent to N403.9b from N293.6b year-on-year; as its gross profit soars to N197.2b from N114.2b year-on-year, rising by 63 per cent.
Commenting on the results, Chief Executive Officer, Seplat Energy Plc, Roger Brown, said: “I am delighted that our strong financial performance will enable the payment of a US7.5 cent final dividend, despite the significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents represents a dividend yield of around 11 per cent at the current LSE share price.
“As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year.
“Our gas business continues to develop, with first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.
“We are implementing our roadmap to net zero and have made encouraging progress with a 35 per cent reduction in emission intensity last year. The major reduction in carbon emissions is routine flaring which we are on target to eliminate by the end of 2024.
“Alongside these efforts, and as part of our stated strategy to become Nigeria’s energy champion across the entire value chain, we are planning to invest in gas-to-power and solar power projects with FID targeted for later this year if the projected returns meet our internal hurdle rates.
“We are confident in our outlook for 2023, with the new Amukpe-Escravos Pipeline working well, our drilling cost reductions and efficiencies being delivered, and ANOH’s first gas expected in Q4 once third party infrastructure is completed, our business is on a firm footing to facilitate significant growth and higher returns for stakeholders,” he stated.
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