Continental Focus, International Reach

Seplat Updates H1

Tuesday, July 31, 2018

Seplat Petroleum’s performance in H1 2018 stood overall in line with its guidance range. The company saw overall working interest production in H1 across all blocks stand at 25,286 bpd and 155 Mmscf/d, or 51,099 boepd. It saw its production uptime stand at 76% in the first half and reconciliation losses around 8%.

Seplat is seeing an increasing revenue contribution from its gas business, with gas revenues sitting at $85 million in H1 which is up 57% year-on-year. It is continuing to supply commissioning gas to the Azura IPP. Upon commissioning, expected in Q3, deliveries will move to the contracted level of 116 Mmscf/d gross on take-or-pay terms.

It is also proceeding towards FID at the ANOH gas and condensate development at OML 53 and expects FID in Q4 2018. Expectations are that it will see a license renewal for OMLs 4, 38 and 41 following the confirmation of approval from the Department of Petroleum Resources for a period of 20 years.  The license renewal is still subject to final consent of the Minister of Petroleum Resources.

The company is also working on alternate export routes and according to its latest release has two jetties at the Warri refinery to provide a back-up option that can allow for sustained exports of 30,000 bpd gross if required in the future. The completion of the 160,000 bpd Amukpe to Escravos pipeline is progressing slower than anticipated; consequently, Seplat has adjusted its own expectation of completion to Q4 2018


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