Seplat Petroleum Development Company Plc has said it is driving the growth of the domestic gas market to power the economy particularly because of the energy short fall in terms of electricity. The Chief Executive Officer of Seplat, Mr. Roger Brown stated this at the first Nigerian Oil & Gas Webinar organised by the Council and Management of the Nigerian Stock Exchange (NSE) themed “Perspectives of operators and industry experts post-COVID-19”.
The Chief Executive Officer of Seplat, Mr. Roger Brown, was represented by the company’s Chief Financial Officer, Mr. Emeka Onwuka, on a panel dubbed“Impact of COVID-19 and oil volatility on operations, the Nigerian gas market, key challenges and forward strategies for the industry, funding dynamics & capital raise opportunities.”
Onwuka said: “Seplat has gone more socially conscious in its operations in its quest to drive a sustainable business, whilst promoting positive Economic, Social and Governance (ESG) impacts… We have had to take the renewable objective very seriously and we are looking at that segment of the market which is why we are very big in the midstream in terms of oil and gas.
Gas being a transition energy at this stage, because we believe that our country Nigeria which is our focus has its own climate issue.” However, there is a major objective recently to displace diesel as a source of power and electricity in the country,“he said.
Responding to the impact of COVID-19 on the company, the Seplat CFO, said the company was able to sustain its operations because it already had existing protocols on the safety and health of her workers at the field,adding that it only extended the protocol to deal with the unique situation brought about by the COVID-19 pandemic.
Mr. Onwuka also noted that Seplat currently supplies over 30 per cent of the domestic gas requirements of the power generation companies (GenCos) in Nigeria. According to him, Seplat’s domestic supply of gas actually cushioned the impact of the drop in revenue in Nigeria arising from the global crude price drop.
Earlier in his keynote address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, also said that the pandemic resulted in loss of revenue and deferred investments.
He stressed the need for innovation and adaptability in the industry for enhanced growth and development.
In his remarks, the Group Managing Director of NNPC, Malam Meye Kyari, who was represented by Mrs. Rose Eshietti (designation) said that the country’s N2.6 trillion oil revenue target declined by 40 percent as a result of twin shocks of COVID-19 and low crude oil price.
According to Kyari, the pandemic created an unprecedented and global crisis that would cause regions, countries, sectors, companies and individuals to experience reaction, resilience, recovery and adjustment for a new reality.
“The energy industry is likely to continue to struggle in the wake of the precipitous drop in oil and gas prices due to the dampened demand from the effects of COVID-19” he said.
According to the Chief Executive Officer of Nigerian Stock Exchange, Mr. Oscar Onyema, “the Nigerian Stock Exchange is happy to host this webinar at this critical time in our strategic and advocacy drive towards supporting the Nigerian Oil & Gas sector. The webinar is part of the Exchange’s thought leadership offerings. The NSE views its importance to provide thought leadership especially in these times with the world facing unprecedented challenges occasioned by COVID-19. Beyond a health crisis, governments and corporations are saddled with the responsibility of overcoming the impact of the pandemic on markets and global economies.
“As you are aware, the oil & gas sector remains arguably one of the most critical sectors to the Nigerian economy. Giving its sensitivity to external shocks and the sector’s strategic importance to government revenue, the faltering global demand for crude and recent collapse in oil prices has heightened future uncertainties for the sector. However, these challenges present as a backdrop for future opportunities for government, regulators and operators to adopt innovation across existing verticals and towards growth areas, “ he said.
Aside the Honourable Minister for State for Petroleum Resources, Chief Timipre Marlin Sylva, who gave the Keynote Address, and the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari, who gave the Goodwill Message, the Head, Oil & Gas Coverage, Renaissance Capital UK, Alex Burgansky, made a presentation titled, Global Oil & Gas Trends and Future outlook for the Nigerian Oil & Gas Sector. PIB/PIGB (consideration is the entire Oil &Gas value chain). There was also a FireSide Chat with Audrey Joe-Ezigbo President, Nigerian Gas Association. The future of the Nigerian oil & gas sector, provide recommendations for policymakers, and identify opportunities for long-term growth and expansion.