Seplat seeks human capital investment, asset integrity to drive value in Oil, Gas

By Onu Okorie

Chief Executive Officer of Seplat Energy, Engr. Effiong Okon, has called for deliberate investment in human capital to build a deeper understanding of the sub-surface, wells and facilities, saying the right knowledge would drive requisite capital raising and ultimately optimize asset value.

Speaking during Panel Session Two of the 49th Nigeria Annual International Conference and Exhibition NAICE, organised by the Society of Petroleum Engineers SPE in Lagos under the theme “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape,” Okon called on SPE to raise more engineers to help cover the skills gap and drive efficiencies across the Nigerian oil and gas space.

He said that for independent oil and gas players in Nigeria to optimize the value of their assets, boost returns on investments and ensure resilient systems, they must get asset integrity right, fix obsolescence in their operations, and consciously work on extending the life of their assets.

According to him, critical equipment must be maintained at top quartile performance of 95 per cent, meaning that equipment should be running 95 per cent of the time. “When you do all that, you drive down unscheduled deferment. In fact, you must follow your oil and gas molecules from reservoir to export. The approach is all encompassing – you must understand your reservoir capacity, well capacity, your flow line and surface facilities. These mean a total understanding of the asset,” he emphasised.

On further reducing costs in operations, Okon said effective water treatment, ending routine flares and monetising every gas molecule — as against paying penalties on flares — cutting redundancies in evacuation routes, and building capacity around logistics and outsourcing would significantly impact operations.

Speaking on Seplat Energy’s commitment to advancing shareholder value, Okon said the company had returned massive value to shareholders in the form of share appreciation and dividend payouts over the years, while also balancing that with capital allocation targeted at building the company for the future.

He said the company had distinguished itself in gas development and performance domestically, noting that its shallow water business holds about 12 trillion cubic feet TCF of gas, which will be unlocked, accelerated and monetised more than ever before.

“We are indeed trailblazers when it comes to domestic gas development. We are also doing a lot of Liquefied Petroleum Gas LPG in the domestic market to displace biomass and contribute in addressing carbon intensity issues,” he said.

Seplat Energy Plc is Nigeria’s leading indigenous energy company, listed on the Premium Board of the Nigerian Exchange Limited NGX: SEPLAT and the Main Market of the London Stock Exchange LSE: SEPL. The company’s portfolio consists of eleven oil and gas blocks in onshore and shallow-water locations in the Niger Delta, which it operates with partners including the Nigerian Government and other oil producers. It also holds operating interests in three export terminals — including the Qua Iboe export terminal and Yoho FSO — as well as the Bonny River Terminal BRT, and operates two large offshore NGL recovery plants at Oso and EAP.

Seplat operates three gas processing plants onshore — Oben in OML Sapele in OML 41, and the 300 MMscfd ANOH Gas Processing Plant in OML 53, an integrated joint venture with NGIC — facilities that combine to position the company as a leading supplier of natural gas to Nigeria’s domestic power generation market.