Seplat Energy Plc, an indigenous energy firm, increased its gas revenue by 10.21% to $63.7 million in the first half of 2023 from $57.8 million in the same period of 2022.
The Punch reported that the increase in petrol revenue, according to a statement issued by the group on Monday, was the result of higher petrol prices that were realized and an increase in sales volume.
The average realized gas price increased over the period under review by 4.4% to $2.87/Mscf, while gas production increased by a more moderate 1.4% to 21.6 Bscf from 21.3 Bscf in the first half of 2022.
According to a recent analysis of performance for its business operations, the average realized petrol price improvement represents the impact of increases in petrol prices that were implemented over the period.
“Our group production performance has improved in 2023, thanks to greater uptime on OML 40 and reduced losses on our Western Asset,” Seplat Energy stated in its outlook for the remainder of the year and given year-to-date production and the anticipated benefit of new well stock when it becomes available in the later half of the year, we retain our 2023 guidance range at 45,000-55,000 bpd, which we are confident of meeting.
“We emphasize that our guidance does not include any anticipated contribution from Mobil Producing Nigeria Unlimited or ANOH projects.”
“Our projected capital expenditures for 2023 have been revised to a range of $160-190 million. We have a drilling strategy in place to achieve the targeted drilling targets in 2H 2023, and we remain committed to doing so.”
Seplat Energy’s average working interest gas volumes for the reviewed period were 119.4 million standard cubic feet per day, an increase from 117.7 MMscfd in the first half of 2022. The availability of condensate evacuation pathways and improved well performance can be credited for this rise.
The business also mentioned that it has signed a fresh Gas Sales Agreement with a supplier of bulk gas for 50 MMscfd and that gas supply would commence once all the necessary conditions precedent were met by the new customer.
The Oben and Sapele gas plants need third-party gas, thus we are actively attempting to secure it. The plan’s implementation to separate the upstream operations from the midstream company has gone according to schedule. The internal transfer of midstream assets to Seplat Midstream Company is now complete.
