A Review of the Nigerian Energy Industry

Nigerian oil company Seplat targets 85,000 b/d output by 2016

Austin Avuru12 April 2014, Lagos – Nigerian oil producer Seplat Petroleum aims to raise oil production to 85,000 b/d by 2016 on the back of an anticipated cash flow from the listing of its shares on Lagos and London stock exchanges, as well as an aggressive pursuit of assets to be sold by international companies in Nigeria, the company chief executive said Thursday.

“We have a production target of 85,000 barrels of oil and condensate per day by end of 2016 from our current assets,” Seplat CEO Austin Avuru said in a statement by the company announcing the price offer for its shares.

“Our ambition is to secure acquisitions which enable us to exceed this target,” Avuru said.

Seplat oil output from three Niger Delta onshore oil fields — OMLs 4, 38 and 41 — acquired
from Shell in 2011, averaged 51,300 b/d as at end of 2013, according to company data released earlier this year.

Seplat, which is controlled by France’s Maurel & Prom, is however in the hunt for more assets including Shell’s stake in OML 29, which produces around 62,000 b/d and 40 standard cubic feet of gas/day.

Seplat is also finalizing its deal to buy Chevron’s stakes in Nigeria’s Niger Delta OML 53, 53 and 55.

The company said March 11 that it would raise $500 million through public offers of its shares on the Lagos and London exchanges.

At an offer price set at of 210 pence per share on the London Stock Exchange, and N576/share on the Nigerian Stock Exchange, Seplat said it expects its market capitalization to be $1.9 billion.

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