Business
Seplat Petroleum seals Crude Purchase Agreement with Waltersmith Petroman Oil Limited
Seplat Petroleum in its effort to enhancing national energy output has signed a Crude Purchase Agreement with Waltersmith Limited.
Seplat Petroleum Development Company Plc has announced the signing of a Crude Purchase Agreement (CPA) with Waltersmith Petroman Oil Limited, in line with its commitment to boosting national energy output.
The recent disclosure is contained in a press statement signed by the Secretary of Seplat Petroleum, Mrs Edith Onwuchekwa, and made available on the Nigerian Stock Exchange platform today.
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The Crude Purchase Agreement involves Seplat Petroleum supplying between 2,000 and 4,000 barrels of oil per day (bopd) from its share of Ohaji South Field within OML53 to Waltersmith’s new 5,000 bopd modular refinery at Ibigwe Field in Imo State.
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What they are saying
Recall that Nairametrics had earlier reported the commissioning of the Waltersmith Limited Refinery which is expected to deliver 5,000 bopd. In addition, Nairametrics reported that phase 1 of the project involves the firm processing circa 6,000 barrels of oil equivalent per day (boepd) currently produced by the upstream business (such as Seplat) to the readily available market in the south-eastern part of Nigeria.
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In lieu of this, the recent CPA deal will boost the capacity of Waltersmith Limited to deliver its target.
Commenting on the recent development, the Chief Executive Officer of Seplat, Roger Brown, said:
- “We are delighted to sign this Crude Purchase Agreement with Waltersmith as it ensures that Nigerian crude will be refined locally by a Nigerian refiner. The agreement will eliminate losses we previously experienced on the export pipeline, meaning more revenue will be booked by Seplat for the same amount of oil produced from the field. Waltersmith’s refinery will also benefit the Nigerian economy by creating local jobs to refine our oil.”
READ: Seplat Petroleum Plc posts $270 million profit in 2019
Why it matters
The Crude Purchase Agreement is important to the Federal Government’s drive to increase the country’s refining capacity and halting importation of petroleum production, which will save a lot of foreign exchange for the country. Furthermore, the deal is a major boost to national energy security, as it aims to eliminate leakage in the transportation of crude oil.
Business
Lagos State seeks investors in aquatic and livestock agriculture value chain
The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap.
The Lagos State Government announced it is seeking private sector collaboration for Agriculture sector value chain development in livestock feed mills, fisheries and red meat.
This was disclosed by the State Commissioner for Agriculture, Ms Abisola Olusanya, in a statement on Sunday in Lagos.
The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap, as the State identified the 3 main sectors for value chain disruption.
She also added that investment in the sectors would also develop jobs for the industry and boost the State’s GDP growth, through Private Sector collaboration as Lagos residents consume over N5 trillion worth of food annually.
“The objective is to stimulate and encourage more public-private partnerships in the three value chains,” she said.
“When you consider this pool of transactions happening in Lagos, it shows that we are the market. For instance, we demand over 400,000 metric tons of fish on an annual basis.
“But our fishermen and our aquaculture farmers are only able to produce just about 174,000 metric tons with deficit of 200,000 metric tons,” she added.
She also disclosed that the state has 9,000 artisanal fishermen, and bringing more youths into the space will increase the level of fish and seafood being harnessed from our water bodies. Looking at the transactional value on an annual basis, the fisheries sector is worth well over N120billion according to her.
In case you missed it: Nigeria exported agricultural products worth N321.5 billion in 2020, representing a 19.16% increase when compared to N269.8 billion recorded in 2019 and a 6.27% increase compared to N302.28 billion recorded in 2018.
Business
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