Energy
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.
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
NLNG’s $10 Billion Train 7 LNG Project to Begin Operations by 2027
Expectations are high that the $10 billion Train 7 project of the Nigeria Liquefied Natural Gas Limited (NLNG) would go into operation by the end of 2027.
Managing Director of NLNG, Adeleye Falade, made the disclosure on the side-lines of the Gastech conference, yesterday, in Bangkok, Reuters reported.
This is part of a grand strategy by the company to raise production and address persistent gas supply constraints.
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Train 7 project, located on Bonny Island, Rivers State, is expected to increase NLNG’s production capacity to 30 million metric tonnes per annum (mtpa), from the current 22 mtpa.
The project has suffered repeated delays, including disruptions associated with the COVID-19 pandemic and the Russia-Ukraine war.
Falade also disclosed that NLNG remained under a force majeure declared in 2022 following widespread flooding that disrupted gas supplies to the company.
According to him, the company would lift the force majeure when it reaches a 90 per cent utilisation rate, with the plant currently operating at between 82 per cent and 83 per cent.
“We still have a delta of about 15 per cent that we need to close,” Falade said. “Operationally, we are able to do that, but our biggest constraint is gas supply, and we’re working with all the relevant people, including the government, to be able to get more gas to flow into the plant,” he added.
He said NLNG was focused on meeting its existing contractual obligations to buyers while the company worked to increase production.
Falade added that interest in additional LNG volumes and spot cargoes had increased after exports through the Strait of Hormuz were curtailed by the Iran war.
“People are looking at more diversified, reliable sources of supply,” he said.
“Our priority currently is to continue to make sure that we fulfil our obligations to our existing customers and maximize as much production opportunity as possible that we have,” he added.
The NLNG is majority-owned by the Nigerian National Petroleum Company Limited (NNPC Ltd), while Shell, TotalEnergies and Eni are its international partners.
Energy
Smart Filling Stations: NNPC Ltd Assuages Job-loss Worries
Public concerns that the introduction of smart and self-service filling stations would lead to job losses in the downstream petroleum sector have been dismissed by the Nigerian National Petroleum Company Limited (NNPC Ltd).
According to the state oil major, the deployment of automated stations was part of efforts to improve efficiency and customer experience. It added that the technology would create new opportunities rather than simply eliminate existing jobs.
The NNPC Ltd also disclosed plans to transform about 900 of its existing retail outlets across the country into modern energy hubs, as it adapts its retail business to changing consumer needs and developments in the downstream sector.
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The disclosures were made in Abuja, during the commissioning of a 24-hour smart, self-service filling station at the headquarters of the Nigeria Immigration Service (NIS).
The Executive Director, Retail Operations and Mobility, NNPC Retail Limited, Shettima Kukawa, said the new model was designed to provide customers with faster, more convenient and technology-driven services.
Kukawa added that the transformation of the company’s retail outlets was not about simply replacing workers with machines, but about creating a modern retail environment capable of providing more services to customers.
He explained that the smart station allows motorists to purchase fuel through the NNPC fuel app, fund their digital wallets and dispense the exact quantity of fuel they have paid for using a self-service code.
The station has a storage capacity of 180,000 litres of Premium Motor Spirit (PMS) and 45,000 litres of Automotive Gas Oil (AGO), with 16 PMS pumps and two AGO pumps.
It also has a six-point electric vehicle (EV) charging facility and is primarily powered by a solar system with more than 200kWh capacity.
Managing Director, NNPC Retail Limited, Hubb Stokman, said the downstream industry was undergoing significant changes following fuel deregulation and the commencement of operations at the Dangote Refinery.
Stokman said consumers were also demanding more services at filling stations, pointing out that the traditional fuel-only model was no longer sufficient to meet their expectations.
“Today shows that the downstream industry is changing after the fuel deregulation and also the start-up of the Dangote Refinery. Our industry is rapidly changing, and I think that more than ever, we need to meet the needs of the Nigerian consumer and their wishes.
“They want to see more services, like a fast food restaurant, convenience shop, maybe a coffee shop, banks. They would like to have a lounge or car wash. All these things that you will see here,” he said.
Also speaking, the Executive Vice President, Downstream, NNPC Limited, Dr Mumuni Dagazau, said the company was moving beyond the traditional concept of a filling station by integrating technology and alternative energy solutions into its retail network.
He said the development represented the type of modern retail infrastructure that should be replicated across the country, stressing that Nigerians deserved improved quality and service.
“Our objective at NNPC is not simply to provide fuel, it is to provide reliable energy solutions and a better retail experience supported by technology and innovation.
“We deserve these sort of stations throughout this country. We need to move away from where we have been and deliver this sort of quality and the service to our people in the community,” Dagazau said.
On his part, the Comptroller-General of Nigeria Immigration Service, Kemi Nandap, commended NNPC Limited for integrating EV charging with conventional fuelling.
Represented by Saidu Daura, the Deputy Comptroller-General, Nandap said the development aligned with global trends in energy transition, climate action and smart mobility, describing it as a practical step towards a cleaner, more sustainable and technology-driven economy.
She said the shift to technologies such as electric mobility could create opportunities for investment, employment, skills transfer and industrial growth.
“Today’s commissioning goes beyond the opening of a service station. It is a statement of confidence in Nigeria’s future and a contribution to building a resilient, green, and technologically advanced nation,” she said.
Nandap called for stronger collaboration between government institutions, the private sector and other stakeholders to promote sustainable development and national progress.
The station operates round-the-clock and includes automated services designed to reduce waiting time and give motorists greater control over their transactions.
Energy
Isa Chairs World Energy Council Nigeria
Abdulrazaq Isa, co-founder of Waltersmith Petroman Oil Limited, has emerged as the chairman of the governing board of the Nigerian Member Committee of the World Energy Council (WEC).
The Board, inaugurated in Abuja on 7 August, is made up of nine members with a diversity of backgrounds, drawn from policy, academia, energy institutions and private enterprise.
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The Board membership consists, Dr Ainojie Alex Irune, 45-year-old, Managing Director of Oando Energy Resources and an Executive Director of Oando PLC. Bala Wunti, formerly Chief HSE Officer at NNPC Limited, serves as the committee’s chief executive, alongside Professor Wumi Iledare, Dr Mustapha Abdullahi, Mrs Aisha Farida Katagum, Dr Emmanuel Okon, Dr Victor Ekpenyong and Dr Imamuddeen Talba.
Irune’s inclusion is notable not primarily as an indication of generational change, but rather as a reflection of the extensive industry transformation evident within his comparatively early career. In many respects, his professional trajectory exemplifies the broader developments that have characterised the Nigerian energy industry over the past decade.






