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Gas development, a major carbon reduction move – Seplat Energy

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Gas development, a major carbon reduction move - Seplat Energy

Yemie ADEOYE

Dubai, UAE- SEPLAT Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian and London stock exchanges, has identified its gas development programmes as a major boost for Nigeria’s energy transition agenda as well as the global call for carbon reduction.

Roger Brown, The Chief Executive Officer, Seplat Energy Plc, said this while addressing the media at the recently concluded Africa Oil Week (AOW) in Dubai, United Arab Emirates.

Gas Plant

According to the Seplat Energy CEO, most developed countries currently have gas grid bases forming a strong pedestal for renewables, which is far beyond what is obtainable in Nigeria where the grid base is diesel power.

“To transit to renewables, you need a grid base that works. So, our Decade of Gas mantra in Nigeria is aimed to provide the right grid base for that transition and Seplat Energy is well aligned to that. If you do not have the right grid base and want to go the way of renewables, you could end up going off-grid with small scale solar panels all around. It is important for the world to understand the peculiarities of Nigeria and that the country needs the right base to transit to renewables.”

Mr. Brown also spoke in a panel session dubbed ‘Upstream Value Creation: Unbounded Opportunities Post-COVID’ where he outlined the company’s business strides and as well as its future strategies. He also spoke on the Company’s values and continuous partnership with the AOW Brand at the AOW Drinks Reception sponsored by Seplat Energy.

Mr. Brown added: “Nigeria must have energy which is right for its population. It is got over 200 million people today and by 2050, there would probably be over 400 million Nigerians in this planet, which makes it the third most populous place in the world. For the 400 million people expected, we need to provide the right infrastructure. If you don’t, you are going to have a population migration as the average age in the country today is 18.”

He said Seplat Energy’s business plans are on three-pronged and there are three pillars to it. The pillar one, he noted, is the upstream oil and gas, where the Company is a big producer (independent) in-country.

“The pillar two is our gas processing business with existing and efficient gas plants, and by early 2023, we will be probably the biggest gas processor in-country. In our gas value chain, we have a critical model for electrification in- country. Our pillar three is the renewable business, and we are making very strong intent to say we are going to give the transition energy that is right for Nigeria. There is no point designing what is just good for other parts of the world and does not address the concerns in the areas where we operate,” he noted.

He explained, these pillars are there to not only deliver the right energy mix, but other issues prevalent in the Nigerian space, adding that: “Nigeria has been described as a rich oil producing country, but there is more gas. The federal government has identified this and has put forward the Decade of Gas narrative. The gas profile would last longer than that of oil as gas could be produced for a much longer period, and is an efficient fuel.

“The benefit of gas is very clear: it is a carbon reduction energy source today. Currently, Nigeria’s electricity source is predominantly off-grid diesel. Gas-fired power displaces the diesel option and has  CO2 emission reduction of 30 to 50 per cent depending on the technology deployed. So, for every molecule of gas we put into the market, we displace carbon. By displacing diesel-fired power, we are actively reducing carbon. But for Seplat Energy, this carbon reduction has to be proven.“

For Seplat Energy’s social programmes, he said the Company had developed bespoke models based on the needs of its host communities, which is the reason its partnership with the communities has remained progressive. “Apart from our educational and health interventions and other areas of empowerment, we are still seeking more ways to grow and scale the partnership,” he stressed.

Speaking on the Company’s journey so far, Mr. Brown said it has been a huge amount of development in sub-Saharan Africa as far as the energy sector is concerned, of which the developments have been driven largely by the IOCs and also the national oil company working with them.

According to him, there hasn’t necessarily been a country-specific development, and that is where the opportunities lie.

He explained: “I will give an example of the Nigeria, which is where we are from. We bought our assets from the IOCs in 2010, and have continued to grow them over the years. We have been very successful in acquiring mature assets divested by the IOCs in Nigeria and growing the reserves base and production from those assets. When the company began operations in 2010, our primary assets (OMLs 4, 38 & 41) had 2P reserves of 148 MMboe. Over the last 11 years, we have executed several projects focused on converting stranded 2C resources (in Unappraised Discoveries and Partially Appraised Fields) and some producing fields) to 2P reserves, and have realized an organic growth in the assets’ 2P reserves to the current level of 275 MMboe. Over the same period, we have also drilled over 60 development wells in the assets, resulting in an increase in the average production from c.18 Mboepd to the current rate of c.40 Mboepd.

“Over the years, we have put a lot more infrastructure in place to develop the assets and as we add more assets, what we realized was that the assets themselves haven’t been generally as much as they would be in terms of output. A lot of technologies moved on massively, and the deployment of those technologies (simple onshore technologies as is the case for us) hasn’t been implemented to the level that is should be. Even with shale in the United States, everyone hitherto thought it was uneconomic; not until it was established that not all shale are the same. The companies and technologies in that shale spece got better and better, and there were new ways to improved the shake experience. Therefore, in Africa, there is a relapse of technologies coming in techniques and efficiency-wise. So, there is a lot of hidden value in developed and appraisal assets.

“That is what value creation is. It all depends on company you are looking at. Seplat Energy is a driver of growth in Nigeria. We’ve looked at the map and done our analyses, and have able to determine contingent resources into reserves and produced that. When you are buying assets that you don’t put a big valuation on contingent resources, then there huge unlocked potential.”

Energy

Minister of Power, Adelabu Champions Mini-Grids Amid Northern Power Crisis

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In the wake of a prolonged power crisis impacting Northern Nigeria, Minister of Power Adebayo Adelabu visited the Zawaciki 1MWp mini-grid project in Kano, underscoring the potential of decentralized renewable energy solutions to alleviate regional power shortages.

The project, operated by Bagaja Renewables, provides daytime electricity to the Gida Dubu community, offering a vital source of power as the region faces widespread blackouts.

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Sadiq Zakari, Managing Director of Bagaja Renewables, welcomed the Minister to the facility and highlighted the critical timing of the visit.

“Bagaja Renewables had the distinct honor of welcoming the Honorable Minister of Power to the Zawaciki 1MWp interconnected mini-grid,” Zakari said.

“This visit comes at a critical time, as Northern Nigeria endures a prolonged blackout, underscoring the urgent need for alternative power solutions.

The Zawaciki mini-grid has been instrumental during this crisis, providing at least 9 hours of daytime electricity to the Gida Dubu community, demonstrating the potential of renewable energy in addressing the region’s energy needs.”

Minister Adelabu praised the Zawaciki project as a model for interconnected mini-grids nationwide, noting its role as a sustainable solution for communities grappling with unreliable power supply.

“The Honorable Minister expressed admiration for the Zawaciki project, recognizing it as a viable proof of concept for interconnected mini-grids across Nigeria,” Zakari stated.

“He emphasized the importance of such initiatives and called on state governors and other key stakeholders to support efforts to decentralize and strengthen the nation’s power infrastructure.

By backing projects like Zawaciki, stakeholders can play an instrumental role in reducing reliance on the national grid and ensuring a more stable power supply for local communities.”

Zakari underscored the transformative potential of private-sector renewable energy projects in Nigeria’s power landscape.

He said, “As we have witnessed here at Zawaciki, private-sector-driven renewable energy solutions can transform Nigeria’s energy landscape. With the right policies and support, we can empower communities and enhance energy resilience, even in times of national power instability.”

In addition to the Zawaciki project, Bagaja Renewables is developing several renewable energy initiatives across Northern Nigeria. Among these are:

Barhim Estate, Katsina: A residential power initiative aimed at expanding energy access for households in the region.

Kura-Karfi Commercial Cluster, Kano: Focused on delivering clean and reliable power to commercial areas, this project aims to support local businesses and stimulate economic growth.

Kafin Hausa, Jigawa: With site fencing completed, Bagaja Renewables is preparing to begin technical design and engineering work for a mini-grid in Kafin Hausa, slated to start construction soon.

Zakari said, “These projects represent Bagaja Renewables’ unwavering commitment to building a resilient, decentralized, and renewable-powered energy future across Northern Nigeria.

“Bagaja Renewables is dedicated to collaborating with the government and stakeholders to scale up renewable energy solutions that will support communities, industries, and essential services.

“We believe that decentralized power generation is the future for Nigeria, and we are eager to contribute to a sustainable, reliable, and inclusive energy system for all.” he added

 

 

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Energy

Power Restored In Four Northern States After 10-Day Blackout

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Power has been restored across Plateau, Bauchi, Gombe, and Benue States, bringing relief to residents who endured a 10-day blackout.

The Jos Electricity Distribution Company confirmed that electricity was reinstated around 7:20 p.m. on Wednesday, prompting celebrations in Jos, the Plateau State capital, and other affected areas.

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The prolonged outage was caused by the tripping of a major 330kV transmission line between Benue and Enugu states, leaving several northern states without power.

The blackout severely impacted daily life and economic activities, with residents expressing frustration over the disruption to businesses, healthcare services, and personal livelihoods.

In response, President Bola Tinubu took swift action, summoning Minister of Power Adebayo Adelabu and National Security Adviser Nuhu Ribadu to address the crisis.

Presidential Adviser Bayo Onanuga disclosed on Monday that President Tinubu directed the Ministry of Power and relevant agencies to expedite restoration efforts.

“President Tinubu is deeply concerned about the reports of vandalism and deliberate destruction of essential power infrastructure,” Onanuga said in a statement.

“The President has tasked TCN engineers with bringing immediate relief to the affected states and implementing a long-term solution to prevent future outages.”

 

 

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Energy

Nigerian Power Supply: FGN Nears PPI Completion

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The Federal Government of Nigeria Power Company (FGN Power Company) has announced significant progress in the pilot phase of the Presidential Power Initiative (PPI), which is set to revolutionize the nation’s electricity transmission landscape.

The initiative, in partnership with Siemens, aims to enhance the country’s power infrastructure through the deployment of advanced technology and equipment.

READ MORE: ‘Only Savior Created By God For Nigeria’ – Presidency Slams Obasanjo

Kenny Anuwe, the Managing Director and CEO of FGN Power Company, revealed that the installation and commissioning of eight power transformers across key locations are now complete.

The transformers have been successfully deployed in Ajah, Maryland, Apo, Okene, Ihovbor, Amukpe, Potiskum, and Birnin Kebbi, resulting in a notable increase in the transmission wheeling capacity by 569.6 megawatts (MW).

In addition to the transformers, three mobile substations are operational in Ajah, Jebba, and Kawnar Dangora, further boosting the transmission capacity by an additional 151.2 MW.

Anuwe emphasized that these enhancements are pivotal in addressing the energy needs of the country and supporting economic growth.

Looking ahead, Anuwe stated that the transmission network will be augmented by an impressive 720.8 MW, with plans to commission the remaining equipment to deliver at least another 500 MW by the end of 2024.

This strategic initiative is expected to significantly improve power distribution and reliability, marking a transformative step towards a more robust energy sector in Nigeria.

 

 

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