Dr. ABC Orjiako, the Chairman of Seplat Petroleum Development Company Plc, says that the company would invest more in its gas business in order to boost revenue and shareholders’ value in the years ahead.
Orjiako made this known at the 2015 post-annual general meeting (AGM) news conference in Lagos. According to him, the company invested $300 million in its gas business in 2014, assuring that about $500 million would be invested in the current year so that its revenue would improve and shareholders reap more dividend.
The Seplat Chairman disclosed that the company in 2015 completed and inaugurated the Oben Gas plant phase 1 expansion programme which doubled its gross processing capacity to 300 million standard cubic feet (mmscfd). “The Oben gas plant phase 11 expansion is underway with additional processing modules ordered. Once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 mmscfd,” he said.
Orjiako also promised that the company would continue to deliver good returns to the shareholders in spite of the obvious headwinds facing the sector. He explained that its dual listing also on London Stock Exchange (LSE) had made the company visible to international scrutiny and as an attractive entity to investors across the world.
Orjiako added that the listing made the company to have access to capital not only in Nigeria but all over the world. On the unrest in the Niger-Delta, he said that the company would continue to engage its host community to avoid disruption of operations. “Seplat takes its host community as real partners and stakeholders and we will continue to build on the relationship,” Orjiako added.
On his part, the Chief Executive Officer of Seplat, Mr Austin Avuru, , said that the company in 2015 acted quickly and decisively in response to the weak oil price environment by adjusting on its work programmes and cost structures.
Avuru said the company’s 2016 full year production expectation had been impacted by the current shut-in of the Forcados terminal. He, however, said that the company was now better positioned to withstand such interruptions than in prior years. “Our gas business takes on additional importance by providing a continuous revenue stream that is de-linked from the oil price,” Avuru stated.