FG Urges Operators To Focus On Investment Expansion In Oil, Gas Sector
The Federal Government has urged oil and gas operators to seek ways of raising capital to expand their investment and tackle myriads of problems facing the sector, especially leveraging the nation’s capital market.
Minister of States for Petroleum Resources, Heineken Lokpobiri, while speaking at the Seplat Energy anniversary to commemorate its 10 years of Dual Listing on the Nigerian Exchange Limited (NGX) and London Stock Exchange held in Lagos yesterday, expressed commitment that the government would continue to create an enabling environment and regulatory framework for companies to operate in a more conducive manner as prescribed by the PIA.
He explained that there is a need for companies in the sector to adopt robust corporate governance structures that would attract financiers and sustain their confidence to invest in these firms as achieved by Seplat Energy.
According to him, ” We need to solve our problems ourselves; this is the time for us to evolve homegrown solutions to solve our energy problems.
“It may be increasingly difficult to access funding from the West: Saudi Arabia and UAE to expand investment in oil and gas because they have the money but for some reason, we do not have.
“So, we have to evolve some ingenious ways of raising money, through the capital market. We are committed to sustaining our production in oil and gas but in a more responsible and cleaner way by deploying the best technology.”
The Chief Executive Officer of Seplat Energy, Roger Brown, while reviewing its performance over the last 10 years, noted that the energy giant generated $1.7 billion in Free Cash Flow (FCF) and invested over $57million to support community projects, especially in the areas of health care, education and empowerment.
He said, “Our strong cash generation has supported our ambition to expand our business, which has seen us spend an aggregate of $1.6 billion in capex."
Also, he stated that the company has delivered significant value-enhancing strategies in both operations and financials within 10 years of listing on the bourse He noted that the firm has increased its gas revenue by 350 per cent to $123.4 million from 2014 to 2023.
“We have completed major acquisitions since 2014, unlocking upside value. Our current portfolios include seven onshore blocks, acquired Chevron’s OML53, transferred in 2016, resulting in the development of the ANOH gas plant, acquired Eland in 2019, signed SPA with Exxon for MPNU in February 2022.”