Sam Ikeotuonye 07 June 2017, Sweetcrude, Lagos – Seplat Petroleum Development Company Plc, a Nigerian independent oil and gas exploration and production firm, says its gas revenues increase by 37 per cent last year, but its oil production was curtailed by the shutdown of the Forcados terminal.
An increase in its gas volume saw the company’s gas revenues increase to $105.5 million during the year, compared to $76.9 million in 2015.
The company said the revenue increase is driven by a 19 per cent increase in the average realised gas price to $3.03 per 1,000 standard cubic feet, mscf, from $2.55/mscf in 2015, and an 11 per cent increase in working interest production to 95 million scfpd from 86 mmscfd in 2015.
The company, specifically, attributed the increase in its gas volume to the new Oben gas processing facility installed mid-year 2015, with a processing capacity of 150 million standard cubic feet per day.
The Chairman, Seplat Petroleum Development Company, Dr. Ambrose Orjiako, said on the sidelines of the company’s Annual General Meeting in Lagos that the shut-in of the Trans Forcados Pipeline, the main route for the company’s exports, impacted the volume of oil production amid low prices.
“During this period, we quickly adapted and started exporting some of our production through the Warri refinery. Another thing we did was to quickly expedite action on our gas development and commercialisation strategy, and that meant that quite a lot of revenue now came from gas,” he said.
Orjiako said the company was able to increase its gas processing capacity to over 500 million scfpd and gas production to 300 million scfpd.
Seplat said the shut-in and declaration of force majeure at the Forcados terminal by the operator, Shell, saw its average daily production fall from 52,000 barrels of oil equivalent per day by mid-February 2016 to 25,877 boepd by year end.
It said oil revenue fell by 55 per cent from $570 million in 2015 to $254 million in 2016, while the total volume of crude lifted in the year was 3.422 million barrels compared to 8.129 million barrels in 2015.
The firm explained that the decline in its gross profit to $72 million from $249 million in 2015 reflected the shut-in of the Forcados terminal, resulting in lower production, lower oil price realisation and higher costs associated with the alternative export route to the Warri refinery.