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Seplat Energy urges swift action on divestment to boost oil/gas production in Nigeria

Seplat Energy Plc, a Nigerian independent energy company listed on the Nigerian Exchange and the London Stock Exchange, has said that Nigeria’s sub-surface potentials could be largely optimized and oil/gas production levels increased if divestment and other related deals are expedited.

The CEO of Seplat Energy, Mr. Roger Brown, said this at the 2024 NOG Energy Week Conference & Exhibition recently held in Abuja.

“Nigeria’s sub-surface potentials could be largely optimized and oil/gas production levels increased if divestment and other related deals are expedited,” he said.

In a press statement provided to Nairametrics, Brown emphasized the pivotal role of Nigerian independent energy companies in enhancing the nation’s economic and energy landscape.

During the panel session titled ‘Defining the Regulatory Frameworks Required to Support the Capabilities of Independents and Incentivize Growth’ Brown outlined the substantial benefits these companies can bring.

Independent energy firms

Brown highlighted that the success of independent energy firms in Nigeria could significantly boost the country’s oil revenues and foster the development of a domestic gas-to-power industry.

This progress, he noted, would provide essential funding for expanding renewable energy initiatives, thus increasing energy access across Nigeria.

Furthermore, Brown asserted that reliable and affordable energy is crucial for unlocking the entrepreneurial potential of the Nigerian population, aligning with the United Nations Sustainable Development Goals.

The CEO said: “International Oil Companies (IOCs) will look to divest to credible local players, those with high levels of governance and accountability in their ESG efforts. Indigenous players also need strong balance sheets and credibility in international financial markets, because the assets they’re acquiring will need future development.

“Also, indigenous companies must commit to working with communities to maintain or increase Nigerian content, as Seplat Energy has been doing for many years.”

Strong governance framework

Speaking to the country’s energy aspirations, he said the independents will play a key role in realising the aspirations of the “Decade of Gas”, adding that a strong governance framework is needed to support the bankability of private sector direct participation/investment in this space.

He noted that Nigeria’s biggest decarbonisation priority is to end small-scale generation and get households and businesses onto a reliable national grid that uses our gas resources, lowers the cost of electricity, and allows renewable energy to be developed and connected into a nationwide grid.

According to him, Seplat Energy is committed to ending routine flaring by the middle of next year and urged all other producers to make this a priority.

Brown said the company’s energy’s new ANOH gas plant can supply enough gas to support more than 1GW of electricity on the grid and this can displace hundreds of thousands of home generators.

He noted that it will reduce the cost of electricity and hopefully get rid of these expensive and highly polluting generators, which are just a huge drag on Nigeria’s economy and create massive problems with carbon emissions.

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