Seplat Energy Share Discussion Threads

[deandavison245] 30/12/2021 11:34

With Rising Theft, Nigeria Records 193m Barrels of Crude Oil Deficit in 11 Months
December 30, 2021

•Only 12 of country’s 53 oil rigs active

Emmanuel Addeh in Abuja



At a projected 1.86 million barrels daily oil production in the country’s 2021 budget, Nigeria recorded a huge deficit of almost 200 million barrels in the first 11 months of this year.

This was largely due to the rising cases of crude oil theft, ageing infrastructure, challenges associated with host communities, under investment, and poor security in the waterways.

Figures from the Nigerian Upstream Regulatory Petroleum Commission (NURPC) obtained by THISDAY, indicated that while Nigeria was expected to pump approximately 635 million barrels of oil by November this year, it struggled to produce only 441 million barrels in the period.

Many oil companies are reporting huge losses, sometimes up to 80 per cent of production in the pipelines. “When they pump through the pipelines, they only get about 20 per cent of product and the rest lost to pipeline breaches and organised theft. The 20 percent hardly covers cost of production,” an industry expert explained.

Some of the operators essentially, identified security as a core issue for the oil companies as product losses through the pipelines are now so massive that it is affecting their bottomline and the country’s revenue projection from crude oil export. Huge quantities of products are daily stolen by individuals and organised cartels of criminals.



The Navy and other security agencies that are supposed to protect the waterways and the companies’ operations are either looking the other way, or colluding with syndicates of oil criminals to steal this all-important national resource. It is now a huge and thriving business at the expense of the country.

This is part of the reason many major oil companies are divesting from the country. To prevent this huge losses to the oil companies, they have largely resorted to using barges to transport oil and the process of building barges and allowing their usage by the government is huge and cumbersome. The cost element to that is; it dramatically increases cost of production to these companies

This year has been a big disappointment for the industry in Nigeria in terms of matching production with market demand as efforts to meet its almost 1.7 million barrels per day allocation had produced little result.

Nigeria, going by the quota allocated by the Organisation of Petroleum Exporting Countries (OPEC), was expected to produce 1.683 million bpd in January 2022. However, meeting that target would be an uphill task as it has maintained an average of 1.25 million barrels in the last few months.

An analysis of the data from the regulatory commission indicated that aside its condensates production, which averaged 300,000 barrels daily, the country, through the Nigerian National Petroleum Company (NNPC) and its Joint Venture (JV) partners, pumped far below its forecast for the commodity for the period.

This was in contrast to last year, when the country was producing 1.7 million barrels per day on the average, except when OPEC compelled its members to cut their production in the heat of the COVID-19 pandemic.



Even then, NNPC and its partners pumped almost 1.4 million barrels daily, but that figure has slumped since the August 2021.

The NURPC data detailing crude production so far this year showed that the country only managed to pump 1.23 million barrels per day in August, 1.24 million barrels per day in September, 1.22 million barrels per day in October, and 1.27 million barrels per day in November.

On a monthly basis, the figures further revealed a decline from January as production was 42.1 million barrels for that month; in February it was 39.8 million barrels while in March, Nigeria pumped 44.2 million barrels, a relatively good month compared to the rest.

But April saw the country produce 41.1 million barrels; it was 41.6 million barrels in May; 39.4 million barrels in June; 41 million barrels in July, before it began a downward spiral till now.

In addition, 38.4 million barrels were pumped from around 30 Nigeria’s terminals and streams in August, 37.4 million barrels in September, 38 million barrels in October and 38.2 million barrels in November.

The unimpressive production figures have also negatively affected NNPC’s remittances to the federation account and by extension the monies shared by the federal, state and local governments this year.

For example with a paltry N10.54 billion in November, NNPC was only able to remit 8.5 per cent of its projected N122.7 billion to the Federation Account, a joint pool of funds shared by the country’s three tiers of government.



Aside April this year, when the national oil company paid in nothing into the federation account, the November remittance represented the second least payment for the year.

The information on the proceeds of the NNPC’s sales of crude oil and gas and subsequent contribution to the account was contained in its presentation to the Federation Account Allocation Committee (FAAC) for the month of December 2021.

Furthermore, the N10.5 billion represented a 29.1 per cent decline of the monthly contribution, which has steadily declined in the past three months due to a variety of factors, including under-production and petrol subsidy payments.

In addition, while a total of N2.30 trillion was supposed to have been paid to the federal, state and local governments in the first 11 months of 2021, only N522.2 billion had been paid as of November.

The NNPC data showed that the continuous deficit payment had so far resulted in a shortfall of N1.78 trillion in the current year.

However, the national oil company blamed the inability to restart the oil wells shut down in 2020 when OPEC compelled member countries to cut production for the declining production.

Added to that, it listed issues with host communities, vandalism, incessant force majeure on major assets, as well as technical issues leading to shutdowns.

THISDAY, however, gathered that ageing upstream infrastructure due to years of under-investment remained a major headwind confronting the Nigerian oil and gas industry.

Meanwhile, a separate document released by the upstream commission showed that out of Nigeria’s 53 oilrigs, only 12 had been near active in the last few months, while 25 are on standby and 16 have been stacked.

In terms of terrain, of the 53 rigs, 33 are onshore, 11 are offshore, while nine were found in the swamps.

While a stacked rig means the ones which may or may not be operable, but which are stored and have no crews, an active rig count, is an official listing of operational oil and gas rigs in a certain area.

In the oil industry, the rig count is a major index of measuring activities in the upstream sector.

[krall] 22/12/2021 17:37

hxxps://orientalnewsng.com/pan-ocean-commissions-amukpe-escravos-crude-transportation-pipeline/

.....development is a demonstration of commitment by the company to transport crude to Escravos, with access for tie-in by oil companies operating in the Western Niger Delta.

Already, Seplat has released 3311 barrels of crude oil into the pipeline.

The Amukpe Escravos Pipeline was built using the horizontal directional drilling technology, making it tamper-proof, durable, safer for operations, minimising environmental impact, and discouraging bunkering activities.

To celebrate this milestone, Pan Ocean’s Chief Operating Officer, Olajide Ishola said, “We are elated at the success of this project, and we owe it to the many hands which have all contributed in one way or the other to bring this to completion.

To our regulators, industry stakeholders and lenders for their support thus far. The completion of AEP was made possible by the collaboration and dedication of all these stakeholders.”

[krall] 22/12/2021 17:34

dec 21 , Pipeline in use, if correct great christmas gift.

hxxps://independent.ng/pan-ocean-brings-amukpe-escravos-pipeline-to-life/

Pan Ocean Oil Corporation (Nigeria) has announced that its 67-kilometre long Amukpe Escravos Pipeline (AEP),has commenced operations .

The company said the feat is a demonstration of its commitment to deliver results, leading to the commissioning of the facility, making it ready for optimum use.

The AEP was designed to transport crude to Escravos, with access for tie-in by oil companies operating in the Western Niger Delta

[robizm] 20/12/2021 13:58

I wonder who the partner is as they would need deep pockets

[robizm] 01/12/2021 10:29

Thanks for that. Would be transforming for sepl but the cost would be huge

[krall] 29/11/2021 21:08

Exxon shallow acreage is quite a big fish to hook.

2018 - summary. Now probably declined some, but still huge operations.

ExxonMobil’s 479,010 Barrels of Oil Per Day (BOPD) operated output in Nigeria was ahead of the closest rival by at least 70,000BOPD, according to 2018 production figures just released by the Department of Petroleum Resources (DPR).

ExxonMobil’s production is entirely offshore, with Mobil Producing, its shallow water subsidiary, operating 288,808BOPD from four acreages under the Joint Venture (JV) with NNPC,....

[...]



Seplat Energy Plc ("Seplat Energy" or "the Company")

Statement regarding recent press speculation

Lagos and London, 29(th) November 2021: Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, notes the recent press speculation and confirms that Seplat Energy, together with a partner, is in competitive discussions to acquire ExxonMobil's Nigerian shallow water business. Deliberations are ongoing and accordingly, there can be no certainty as to the outcome.

A further announcement will be made as and when appropriate, in line with regulatory requirements.

[e43] 29/11/2021 13:52

Sounds a positive development dd245,hope the sale proceeds faster than SAVE's acquisition of Exxon's Chad assets.

[deandavison245] 29/11/2021 09:09

Seplat Energy Plc ("Seplat Energy" or "the Company")

Statement regarding recent press speculation

Lagos and London, 29(th) November 2021: Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, notes the recent press speculation and confirms that Seplat Energy, together with a partner, is in competitive discussions to acquire ExxonMobil's Nigerian shallow water business. Deliberations are ongoing and accordingly, there can be no certainty as to the outcome.

A further announcement will be made as and when appropriate, i

[deandavison245] 26/11/2021 12:27

Nigeria: Nembe Oil Spill Impact Similar to Hiroshima's Destruction During World War - Minister
)
By Cletus Ukpong

"What I saw in terms of the pollution... The devastation of the Niger Delta is massive."

Nigeria's minister of state for Environment, Sharon Ikeazor, said the pollution caused by the Nembe oil spill in Bayelsa State, Nigeria's Niger Delta region, is "massive" and could only be compared to the impact of atomic bomb on the Japanese city of Hiroshima during the World War II.

"It was like a Hiroshima site," she told reporters on Thursday at the Presidential Villa, Abuja.

The spill has put Aiteo Eastern Exploration and Exploration Company, an indigenous oil company, on the spotlight, as well as raised questions over the continuous devastation of the environment in the Niger Delta through oil exploitation.



Toxic fumes were released into the environment and thousands of barrels of crude oil spilled into the waters for more than 10 days as Aiteo could not contain the leak which occurred on November 5 in its oilfield in Nembe.

Ms Ikeazor said she has been receiving briefing on the spill from The National Oil Spills Detection and Response Agency (NOSDRA).

"What I saw in terms of the pollution... The devastation of the Niger Delta is massive," she said. "As we are cleaning up, what we are cleaning up is minute compared to the devastation going on."

Saghir el Mohammed, a director in charge of press affairs, Federal Ministry of Environment, said on Tuesday that 3,000 barrels of emulsified crude oil have been recovered so far from the waters and held in a recovery barge, after the leakage had been stopped.



Ms Ikeazor is calling for a review of the law establishing NOSDRA so that oil companies could face stiffer penalties for pollution. "You will see that they will give maybe N100 fine, anyone can pay that and go back and re-pollute (the environment)," she said.

"It goes beyond the oil companies giving out palliatives, they must put measures in place to prevent such accidents from happening.

"We need to put stiffer penalties, build the capacity of NOSDRA which is the regulatory agency in the oil sector to be able to have the teeth to bite. Without enhancing their capacity and reaffirming the legal framework, getting it stronger, they can't do much. These are areas we are looking into," she added.

Ms Ikeazor also spoke on Aiteo's claim that the spill was caused by sabotage.

"They are also claiming that the spill was due to sabotage by the local communities. We are going to have a targeted approach to illegal bunkering, tampering with oil installation and artisanal mining in the Niger Delta to get alternative livelihood for the young people of the Niger Delta, so that they would desist from this because it is further polluting the environment," she said.

[johnhemming] 19/11/2021 11:34

The original fitch release

[keith95] 19/11/2021 10:59

Published on another BB…

“ Fitch Upgrades Seplat to 'B'; Outlook Stable”

“ Fitch Ratings - London - 18 Nov 2021: Fitch Ratings has upgraded Seplat Energy Plc's (Seplat) Long-Term Issuer Default Rating (IDR) to 'B' from 'B-'. The Outlook is Stable. Fitch has also upgraded Seplat's senior unsecured rating for USD650 million senior notes due 2026 to 'B' from 'B-', with a Recovery Rating of 'RR4'.

The upgrade reflects improved financial flexibility and a strong liquidity profile following debt refinancing in 2021, which in our view will help Seplat survive for more than two years of force majeure without access to the Trans Forcados Pipeline (TFP). Amukpe-Escravos Pipeline (AEP), an alternative oil export route, has been completed and is undergoing commissioning, according to Seplat, but there is no certainty around when it will ship its first oil.”

Published yesterday.

[sunbed44] 17/11/2021 16:34

Whats the point of posting that again

[seatank8300] 17/11/2021 16:07

Fantastic news:

Seplat Energy plc today announces that its co-founder and pioneer Chairman, Dr. A.B.C. Orjiako has decided to step down as Chairman and from the Board of Directors of Seplat Energy Plc at the next Annual General Meeting (AGM) in May 2022. In order to ensure an orderly transition, Dr A.B.C. Orjiako will remain the Chairman of Seplat Energy until the AGM, when he will be succeeded by an Independent Chairperson in line with Seplat Energy's succession plan.

[sunbed44] 15/11/2021 13:56

Im out now until we get more clarity about Chairmans exposure to suspicious activities and production / payment issues. SAVE light years better than this and was only in for divi. Can deal with my capital loss as can offset this with capital gains savings in TXP.

[deandavison245] 15/11/2021 13:11

at least SEPL is still quoted unlike, SAVE and LEK.
SAVE running out of time to save it's quote.

[pastybap] 15/11/2021 11:00

Apologies for the tone on my comment. The gradual, (and to me) irrational price decline has slightly irritated me...

[sunbed44] 15/11/2021 08:30

Thank you. I read a report which said 15th with payment early Dec.

[pastybap] 14/11/2021 23:28

Shows how valuable your "insights" are, when you can't even give the correct date for the xd. It went ex dividend on Friday.

[sunbed44] 14/11/2021 23:10

This is looking grim for us and we will drop even further tomorrow when we go ex-dividend.

[seatank8300] 12/11/2021 17:34

The Chairman, who should have resigned or been removed, is sending off a non-exec director. Actually OUTRAGEOUS. Disaster for corporate governance.

[sunbed44] 12/11/2021 17:10

Pity its not our chairman leavingDirectorate Change Lagos and London - 12th November 2021: The Board of Seplat Energy Plc today announces that Mr. Xavier Rolet, KBE, an Independent Non-Executive Director ("INED"), has decided to step down from the Board of Seplat Energy effective 11th November 2021 for personal reasons. Dr. ABC Orjiako, Chairman of Seplat Energy, said "We would like to thank Mr. Rolet for his contributions and the wealth of experience he brought to the Board. He showed great commitment and passion toward Seplat Energy's journey and our transformational vision. We wish him well in his future endeavours".

[currencytrader1] 10/11/2021 17:50

Nigerian government will be earning shed loads from seplat, this will be kept safe..