Seplat Energy Plc is headlining Nigeria’s national gas agenda with a commitment to eliminate routine gas flares by fourth quarter of 2024.
The commitment comes as the company continued to leverage its gas potential. Seplat Energy grew its gas revenue by 10.21 per cent to $63.7 million in first half 2023 as against $57.8 million recorded in first half 2022.
The growth was attributed to increase realized in gas prices and a rise in sales volume. The average realised gas price rose by 4.4 per cent to $2.87/Mscf, while gas production saw a moderate 1.4 per cent increase to 21.6 Bscf during the first half 2023 compared with 21.3 Bscf in first half 2022.
Seplat indicated that the average realised gas price improvement reflected the impact of upward gas price revisions implemented in the period.
Chief Executive Officer, Seplat Energy Plc, Roger Brown said Seplat Energy remains focused on sustainable business growth and delivering value to stakeholders.
According to him, reducing carbon intensity is crucial for the company, and the flares-out roadmap, which includes measures to minimise greenhouse gas emissions and improve overall energy efficiency, is being implemented to eliminate routine flares by fourth quarter 2024.
He said the company’s continuing strong performance has put it on track for an excellent year that will support the increased quarterly dividends it announced in April.
He noted that the company’s balance sheet remains strong despite the impact of the recent naira devaluation.
“We remain focused on improving operations, reducing costs where possible and further de-risking the business. We continue to strengthen our company in the knowledge that our efforts to improve governance and sustainability are widely supported by Nigerian and international investors,” Brown said.
He said the company remains committed to operational safety and environmental sustainability noting that Seplat Energy achieved over 4.2 million hours without any Lost Time Injury (LTI) year-on-year on its operated assets.
According to him, the safety record reflected a strong focus on safety and the dedication of its workforce to maintaining a secure work and operational environment.
In the notes to the company’s half-year 2023 financial and operational report, the company stated that in addition to its safety record, no major human injuries were reported during this period.
According to the company, this accomplishment highlighted the effectiveness of the safety measures and procedures implemented by the company.
The report noted that the company has embarked on a journey to obtain ISO 45001 and 14001 certifications, which are internationally recognised standards for occupational health and safety management systems and environmental management systems.
By pursuing these certifications, Seplat Energy stated that it aimed at ensuring the highest standards of safety and environmental performance, in line with the company’s places strong emphasis on safety and environmental responsibility.
As part of its commitment to biodiversity and sustainability, the company is collaborating with the National Conservation Foundation (NCF) to promote and support initiatives that protect and preserve the environment.
In its outlook for the remaining part of the year, Seplat Energy said: “Our group production performance has improved in 2023, thanks to greater uptime on OML40 and reduced losses on our Western Asset. We maintain our 2023 guidance range at 45,000-55,000 boepd, which we are confident of meeting, given year-to-date production and the expected benefit of new well stock as it becomes available in the latter part of the year.
“We stress that our guidance does not include any expected contribution from Mobil Producing Nigeria Unlimited (MPNU) or ANOH projects. Our capital expenditure guidance for 2023 is adjusted to a range of $160-190 million. Our commitment to meeting the planned drilling targets remains steadfast, and we have a drilling plan in place to meet these targets in 2H 2023.”