Kunle Kalejaye
The Chief Operating Officer of Seplat Energy, Samson Ezugworie stated this to journalist at the sidelines of the just concluded 2024Offshore Technology Conference, OTC in Houston Texas.
Ezugworie explained that the company’s current production of 460MMSCF of gas per day will ramp up production to 850 mmscf per day by year end when Assa North Ohaji South (ANOH) and Sapele Gas Plants come on stream.
“The entire 850MMSCF of gas would be dedicated to the domestic gas market to support economic growth,” Ezugworie said adding that the injection of the 850MMCF of gas will solve Nigeria’s gas-to-power challenges.
“This is because the gas produced from Oben gas plant goes into the national grid, thereby boosting power generation capacity,” COO said.
Commenting on gas pricing, Seplat COO said it has been challenging issue in the industry which has discouraged International Oil Companies, IOCs from investing in gas stressing that it has to be gotten right.
“The piling debt for gas produced was a major disincentive, making it a less profitable business. But for us at Seplat, what has played out for us is in the areas of strategy and foresight because we clearly know that even if you owe today, there is a chance that you will pay tomorrow because the issue about debt is clearing.
“Now, we are working ourselves into the interruptible gas supply and willing buyer willing seller contracts. In addition to that, what we are also doing is that we have a payment structure for those who are off takers of our gas. Going forward, we are not going to be having debts piling up but a structured way of paying outstanding debts.
“Though, it is a delicate balance because this is something we have to do to contribute to the growth of the country. At the end of the day, you will see that the profit margin is not that significant,” he said.
