Don't Miss


Home   >   Business   >   Industries   >   Energy   >   Seplat targets natural gas to boost revenue, profitability

Seplat targets natural gas to boost revenue, profitability

By on June 4, 2015

The Chief Executive Officer, Seplat Petroleum Development Company Plc, Mr. Augustine  Avuru on Tuesday said the company  would explore its natural gas production potential to hedge against the   falling oil prices. Seplat is the only petroleum exploration and production firm to list on the Nigerian Stock Exchange (NSE) so far. Given the fact that crude oil is  its main source of revenue, there have been apprehensions among some stakeholders that the decline in oil prices could impact on the company negatively.

However,  speaking to journalists at the end of its 2014  annual general meeting (AGM) in Lagos, Avuru said  the company has made huge investment  in natural gas and crude oil processing  that would boost its revenue and increase shareholders value going forward.

He added that apart from  investment in gas delivery,  the company would also  leverage on the expansion exercise to grow its revenue.

“We are now operating in mid stream by processing natural gas and crude oil development and delivery into the market.  We have successfully made efforts in our gas development strategy by expansion of our gas processing facility in Oben. Seplat will take advantage of this to boost revenue from gas in 2015 and in the coming years,” he said.

He, however, said that the company experienced some headwinds to growth in the form of an abrupt decline in oil price during the second half of 2014.
Avuru said that the company would take a prudent approach in 2015 to reduce cost given the lower oil price environment, while the company would allocate capital selectively and prioritise investments that offer the highest returns.

In his address to shareholders, Chairman of Seplat, Dr Ambrosie Orjiako  said although  the decline in oil price presents many challenges for the exploration and production industry, it also has   numerous opportunities.

According to him, the company would take advantage of the opportunities to maximise efficiency and boost profitability.

“We look forward to maintaining our position as one of the leading indigenous oil and gas operators in Nigeria in 2015,” Orjiako said

 

[ThisDay]