Seplat Petroleum Development Company Plc has identified the Assa North-Ohaji South (ANOH) gas processing project as very bankable and capable of boosting the country’s domestic gas supply.
A Seplat team led by the company’s Chief Executive Officer, Mr. Austin Avuru, gave a presentation on the company’s gas business to investors, sector and financial analysts during its Capital Markets Day at the London Stock Exchange (LSE).
Seplat’s Chief Financial Officer, Roger Brown said the forum was organised to appraise investors of the company’s gas business with emphasis on the ANOH gas processing project.
In a presentation titled: “Stability, performance, growth”, the team of six presenters provided the audience with comprehensive information on the company’s gas business, market outlook and anticipated ANOH growth trajectory.
The ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the Nigerian Gas Company. AGPC shall develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.
During his introductory presentation, vuru highlighted that the ANOH gas processing plant will be the first stand-alone midstream joint venture business between the Nigerian National petroleum Corporation (NNPC) and a company in the private sector.
With the ANOH project, Seplat aims to be the largest supplier of gas to the domestic market. The Seplat CEO added: “By the time we commission the ANOH project, we will be able to produce 850 Mscfd.
“Overall, the gas business was not attractive in 2010 and some years after. Seplat however took a conscious decision to invest in the gas business upon the price of gas inching up as ‘willing buyer willing seller’ commercial terms became possible. The company is uniquely situated within existing gas pipeline network, and therefore leveraged on this to significantly expand its Oben gas plant.
“The revenue from the expanded Oben gas plant has been impressive motivating the company to seek further investment in gas.”
He explained that the company’s gas is for the domestic market, saying that Nigeria has a notable population which is projected to continue to grow to 450 million people by 2050.