“Follow Your Molecules”: Seplat’s New CEO Charts Path To Value Creation For Nigeria’s Independents
Rashidat O. Okunlade Writes, Lagos
For independent oil and gas players in Nigeria to optimize asset value, boost returns on investment, and ensure resilient systems, they must prioritize asset integrity, fix operational obsolescence, and deliberately extend the life of their assets, the Chief Executive Officer of Seplat Energy, Engr. Effiong Okon, has said.
Making his first public appearance since his resumption as CEO, Okon delivered the remarks during Panel Session Two of the 49th Nigeria Annual International Conference and Exhibition (NAICE), organized by the Society of Petroleum Engineers (SPE) in Lagos. The conference was themed: “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape.”
The Case for Top-Quartile Performance
According to Okon, critical equipment must be maintained at top-quartile performance of 95 per cent, meaning that equipment should be running 95 per cent of the time.
“When you do all that, you drive down unscheduled deferment,” he said. “In fact, you must follow your oil and gas molecules from reservoir to export. The approach is all-encompassing, you must understand your reservoir capacity, well capacity, your flow line and surface facilities. These mean a total understanding of the asset.”
Cost Reduction and Operational Efficiency
On ways to further reduce operational costs, Okon highlighted effective water treatment, ending routine flares, and monetizing every gas molecule instead of paying penalties on flares. He also advocated cutting redundancies in evacuation routes and building capacity around logistics and outsourcing to significantly impact operations.
The Seplat CEO equally called for deliberate investment in human capital to truly understand the sub-surface, wells, and facilities. According to him, the right knowledge, driven by requisite capital raising, would ultimately drive value optimization. He therefore urged the SPE to produce more engineers to bridge the skills gap and drive efficiencies in the Nigerian oil and gas space.
Delivering Shareholder Value
Speaking on Seplat Energy’s commitment to advancing shareholders’ value, Okon said the company had returned massive value to shareholders through share appreciation and dividend payouts over the year, while also balancing that with capital allocation targeted at further building the company for the future.
He said the company had distinguished itself in gas development and performance domestically, noting that its shallow-water business holds approximately 12 trillion cubic feet (TCF) of gas, which will be unlocked, accelerated, and monetized more aggressively than ever before.
“We are indeed trailblazers when it comes to domestic gas development,” Okon stated. “We are also doing a lot of Liquefied Petroleum Gas (LPG) in the domestic market to displace biomass and contribute in addressing carbon intensity issues.”
What To Know About Seplat Energy PLC
Seplat Energy Plc, Nigeria’s leading indigenous energy company, listed on the Premium Board of the Nigerian Exchange Limited (NGX: SEPLAT) and the Main Market of the London Stock Exchange (LSE: SEPL). Through its strategy to build a sustainable business and drive the energy transition, the company is focused on delivering affordable, reliable, and sustainable energy that drives social and economic prosperity.
Seplat Energy’s portfolio consists of eleven oil and gas blocks in onshore and shallow-water locations in the Niger Delta, operated with partners including the Nigerian Government and other oil producers. The company also has operating interests in three export terminals, including the Qua Iboe export terminal and Yoho FSO, as well as the Bonny River Terminal (BRT), and operates two large offshore NGL recovery plants at Oso and EAP.
Onshore, Seplat operates three gas processing plants: Oben in OML 4, Sapele in OML 41, and the 300 MMscfd ANOH Gas Processing Plant in OML 53, an integrated joint venture with NGIC. These gas facilities augment Seplat Energy’s position as a leading supplier of natural gas to the domestic power generation market.
