In a move to boost the value shareholders get on their investment returns, Seplat Development Company Plc is planning to drive its $700 million investments in Assa North-Ohaji South (ANOH) gas processing project.
While making this disclosure at ‘Facts Behind the Project’ held in Lagos, Seplat’s Managing Director (MD), Austin Avuru said the company would be able to deliver gas when the project is completed by the first quarter of 2021.
Avuru’s said, “Earlier this year, we took FIB to put in along with our partner, an additional $700 million to build a gas plant in Imo State. You measure the potential growth of an eCommerce not by the energy it produces and sells to the outside world but by the energy it consumes and one of the main energy security is gas.
The attention to displace diesel-generated power with gas will save the consumer and the economy a lot of money and that is the huge potentials we saw in has production and we are in the front of the business.”
Funding of the project: The project, according to the oil company, is funded through equity of $420 million, among other financing options, with government offsetting $210 million. The remaining would be funded by Seplat, as the government has already paid $150 million out of the estimated $210 million.
Investors/Shareholders’ value: This is a major investment that is poised to boost impressive yields for Seplat’s investors and shareholders. The project when completed, Avuru said, would enable the company to produce 800 million gas per day, which would ultimately account for 40% of total domestic gas production in Nigeria.
Avuru added that the project is such that 50% is situated in the vicarage that belongs to Shell OML21, while the remaining half is in the Seplat JV vicarage of OML 53.
Nairametrics had earlier reported that Seplat was expected to hold talks with members of the capital market community (i.e., investors and analysts) at the London Stock Exchange (LSE) regarding the gas fields in Imo State.
The meeting was expected to be held on Wednesday, June 26, 2019.
What you need to know: The ANOH Gas Processing plant has a capacity of $300 standard cubic feet per day. It is expected to begin production work in the last quarter of 2020 with its major supply targeted to begin in 2021.
Interestingly, ANOH has the capacity to meet domestic demand and will target local customers.