The Seplat difference
- 01. Financial stability
- 02. Production capability
- 03. Portfolio diversity
Financial strength and flexibility
We have continued to carefully manage our finances, making focused investments across the portfolio and optimising our capital structure to finance our ambitious future growth plans.
We continue to retain discretion over the majority of our capital expenditure to allow flexibility to scale our investments appropriately.
Alongside this, we have kept downward pressure on our cost base to enhance margins.
Strong operational track record
Seplat is underpinned by a high quality asset base and has invested to consistently grow oil production and capacity.
Our policy to establish multiple export routes for all assets will de-risk over reliance on any one third party system to ensure distribution of our production to market.
Looking ahead, we have a large inventory of production drilling opportunities in our current portfolio that we will highgrade and implement a work programme to exploit.
We have prioritised the commercialisation and development of the substantial gas reserves and resources identified at our blocks, positioning Seplat today as a leading supplier of processed natural gas to the domestic market in Nigeria that will help increase Nigeria's power generation capacity and industrial output.
Our gas business is making an increasingly important financial contribution for Seplat with gas prices de-risked from the volatility of the oil price.
Production within guidance, strong profitability, cash flow & balance sheet
A focused and performing business
2018 contained some notable highlights for Seplat. Production was in line with guidance and the strong underlying profitability and cash flow performance allowed for reinstatement of the dividend.
Exploiting improved operating environment to deliver strong profitability growth
2018 was a solid year for Seplat, and a continued validation of our business model and strategy.
Local content development in the Nigerian oil and gas industry
A model for indigenisation
Local content development is critical for countries like Nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation from the rest of the economy, thereby allowing minimal participation from local citizens in its development.
Adeola Adenikinju, PhD, FNAEE, FEI
Professor and Director Centre for Petroleum, Energy Economics and Law University of Ibadan Ibadan