(Ecofin Agency) - In Nigeria, Seplat is currently planning to expand its Oben Phase 11 natural gas plant to boost production to 525 Mmscf/d.

The exploration and production company concluded the development of the Oben gas plant phase in 2015. The extension increased the company’s total processing capacity from 150 Mmscf/d to 300 Mmscf/d.“The Oben gas plant phase II expansion is underway with additional processing modules ordered. Once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 mmscfd,” ABC Orjiako (photo), Seplat’s Chairman, said.

He added that the company’s management made tremendous improvement on all parts of its plan to deliver world class production and reserve growth.“We were able to transform our gas business, which achieved 185 per cent year-on-year growth. In a significant step forward for its gas business, during mid-year 2015, Seplat successfully completed and commissioned the Oben gas plant phase I expansion. This expansion saw the company’s overall gross processing capacity double to 300mmscfd. Alongside the significant increase in gas production, the positive financial impact of Seplat’s gas business was evident as revenues from gas sales increased to 185% year-on-year to $77 million,” he added.

According to Seplat’s CEO, Austin Avuru, the company’s corporate governance position and change initiatives, did a lot to protect the company from being severely affected by the global low oil price.“In 2015, we delivered on what was in our control, posting best-in-class reserves and production growth and taking our gas business across a transformational threshold with further expansion still to come. Our 2016 full year production expectation has been impacted by the current shut-in of the Forcados terminal. However, we are much better positioned to withstand such interruptions than in prior years. Our gas business takes on additional importance by providing a continuous revenue stream that is de-linked from the oil price. Our enlarged portfolio offers us the scope for greater diversification,” Avuru told the Nations.

Avuru added that Seplat’s working interest proven and probable reserves at the end of 2015 increased by 71% to 480 Mmboe, with an additional 98 Mmboe acknowledged as 2C resources thereby making the overall reserves to 578 Mmboe.Average working interest production in 2015 reached 43,372 boepd, oil and condensate production represents 29,003 bopd, a 20% increase while natural gas production was 86 Mmscfd, up by 119% year-on-year.

All the natural gas produced was delivered to the domestic market for industrial and power sector use, he said.

Seplat has set a production goal of between 41,000 and 48,000 boepd in the 2016 financial year and estimates its capital expenses to be about $130 million.

Anita Fatunji