Seplat Energy has said that the Assa North Ohaji South (ANOH) project will be completed in the third quarter of 2024.
The company stated this in its unaudited financial statements for Q3/2023.
The company stated further that there have been further delays during the construction of the project, particularly on the two critical infrastructure projects managed by third parties: OB3 pipeline and Spur line.
The report stated:
- “ANOH first gas now expected in 3Q-2024. Further delays during construction of the project, particularly the two critical infrastructure projects managed by third parties: OB3 pipeline and Spur line.”
In the report, Seplat Energy Chief Executive Officer, Roger Brown, said:
- “Ongoing third-party delays to ANOH’s export infrastructure remain a source of frustration, but we are confident that the quality of the project will support dividend growth for Seplat in the coming years as we diversify the business and deliver on our strategy to provide more affordable energy for Nigeria.”
According to the company’s latest report, in the second quarter of 2023, several important steps were planned for the ANOH gas project.
These included finishing the AGPC plant’s mechanical work, drilling and connecting upstream wells, crossing a river with the OB3 pipeline, and linking the OB3 pipeline to the ANOH gas plant using a spur line.
However, the project has faced delays due to various factors, including security issues, adverse weather conditions, and performance issues with contractors. Consequently, progress has been slower than initially expected.
Despite these challenges, the AGPC plant is nearing completion, with 95% progress, and the company anticipates achieving mechanical completion by the end of 2023.
Notably, the AGPC project has maintained an impressive safety record, with 10 million man-hours of work completed without any lost-time incidents (LTI).
In the report, Seplat Energy also stated that in the first half of 2023, drilling of the third well was complete, and work on the fourth well is well underway, and expected to finish soon.
Surface facilities for delivering wet gas to the AGPC plant are being worked on and are expected to be wrapped up this quarter by the upstream operator, SPDC.
Meanwhile, the government partner, NGIC, is handling the pipelines needed for gas transport, including the 23km spur line and the OB3 pipeline.
Progress on the OB3 pipeline has been slower than anticipated, with a revised completion date set for the end of 2023 due to delays in tunnelling operations.
The report also noted that the Spur Line project’s overall completion stands at 70%, with an expected completion by the end of 2023, although a revised completion date of Q1 2024 is more likely due to various delays.
What you should know: Note that the AGPC plant is expected to provide Seplat with a dividend of around $30 million annually approximately 12-18 months after achieving the first gas.