Seplat, NNPC partner to develop $700 million gas in Imo

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Seplat oil Plc and the Nigerian National Petroleum Corporation(NNPC) have raised $700 to use in developing gas potentials in Imo State.

The partnership between Seplat and NNPC is aimed at developing emerging gas fields in Imo State worth $700m.
The plant would be jointly developed, built and operated by ANOH Gas Processing production in Q4 2020, with first supply planned for 2021.


The financiers of the gas project, Seplat and NNPC, will jointly stake 60% or $420million in equity investment, while Seplat through ANOH Gas Processing would source the remaining 40% or $280million via debt financing. Already, the two parties have invested $100million each in the project. Nigeria plans to ramp up gas production with

Seplat Petroleum Development Company Plc in partnership with the Nigerian National Petroleum Corporation (NNPC) has taken a final investment decision to develop emerging gas fields in Imo State worth $700m. The company aims to deepen its operation in the upstream segment of the Nigerian oil and gas sector.
The plant would be jointly developed, built and operated by ANOH Gas Processing,
a subsidiary of Seplat along with the Nigerian Gas Company, a unit of the NNPC. According to Seplat, the plant has an initial capacity of 300-million standard cubic feet (scf) per day and will correctly process wet gas from the unitised upstream fields at OML 53 and OML 21. The joint gas project will commence production in Q4 2020, with first supply planned for 2021.


The financiers of the gas project, Seplat and NNPC, will jointly stake 60% or $420million in equity investment, while Seplat through ANOH Gas Processing would source the remaining 40% or $280million via debt financing. Already, the two parties have invested $100million each in the project. Nigeria plans to ramp up gas production with the oil and gas project, located in Assa North/ Ohaji South fields, Imo State.


The company, which is listed on the London and Nigerian exchanges, plans to leverage the vast opportunities in the local market, with particular focus on power generating companies and other local gas consumers. Seplat’s gas production stood at 525 miscf per day, up from 90 million scf almost a decade ago. The firm currently supplies around 30 per cent of the gas required for power generation in Nigeria. Seplat is focusing heavily on gas investments, drilling and acquisitions to boost its aggregate output intending to tap into demand for electricity.


According to industry experts, the firm seeks to leverage relative stability in the Niger Delta region to double its capital expenditure to about $200 million in 2019. Precisely, the firm will spend about 70% of its capital budget on drilling and 30% on facilities and gas development. The federal government is currently promoting investments in gas infrastructure aimed at enhancing gas availability to power companies and boosting the supply of electricity across the country.


Seplat is an independent indigenous exploration and production firm operating in the upstream sector of the Nigerian oil and gas sector. The Company’s strategic focus is to optimise hydrocarbon production and recovery from its existing oil assets, including acquiring and farming into new opportunities in Nigeria. Seplat’s focus on exploration and appraisal activities such as coastal and shallow water offshore areas will enable it to tap into emerging opportunities, which offer production, reserve replacement and cash flow potentials, among others.

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