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By Chinwendu Obienyi
Nigeria’s leading energy supplier, Seplat Energy Plc, has assured its shareholders of its commitment to powering the country’s energy transition, future prosperity and it’s hopeful that it will complete the acquisition of the assets of Mobil Oil Producing Nigeria Unlimited (MPNU).
This is coming after the Federal Government refused to give its consent to the proposed acquisition of oil and gas assets. The government in its formal response attributed its rejection of the deal, which was first announced almost three months ago, to overriding national interest, among other reasons.
But at its Annual General Meeting (AGM), held in Lagos recently, its CEO, Roger Brown, said the energy industry in Nigeria has a bright future and as Nigeria’s indigenous energy leader, the company has set its sight on powering the country’s energy transition and future prosperity.
He explained that the addition of MPNU nearly tripled the company’s production and doubled its reserves on a pro forma 2020 basis, reinforcing its leadership of Nigeria’s indigenous energy sector, enable the company to generate strong future cash flows that will underpin its investment in Nigeria’s energy transition and improve the firm’s overall stakeholder returns.
“Our 2021 performance was affected by outages at Forcados Terminal that will no longer have such an impact when we switch to the new Amukpe-Escravos Pipeline, which we expected to launch in March. This is part of our strategy to diversify and de-risk routes to market, assuring higher revenues from significantly better uptime and lower reconciliation losses. Furthermore, once we have completed our acquisition of MPNU, we will add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses.
The addition of MPNU offers a significant undeveloped gas resource base which, alongside our ANOH gas project development will underpin Nigeria’s energy transition and drive domestic and export revenues when developed. Our financial strength is matched by the skills and ambitions of our staff and we look forward to welcoming more than a thousand highly trained colleagues from MPNU and working with them to ensure their smooth onboarding into Seplat Energy”, Brown said.
The Seplat CEO added that the company would keep engaging market stakeholders and build a sustainable, world-class company that generates attractive returns and delivers energy transition for one of the world’s largest and most rapidly growing populations.
