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Seplat Petroleum and NNPC are raising $700m for gas plant
By Fakoyejo Olalekan - April 13, 2019 0
Seplat Petroleum and NNPC gas project, Nigerian National Petroleum Corporation, Seplat Petroleum Development Company Plc, Economic diversification in Nigeria, Crude oil in Nigeria, OPEC

Plans to reduce dependence on oil has begun, as the Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Company Plc are planning to raise $700 million for a joint gas project scheduled to start production next year.

The plant will be developed and built in Imo State and operated by ANOH Gas Processing Company, which is owned by Seplat, and the Nigerian Gas Company, a unit of the NNPC.

According to report, the project, known as Assa North-Ohaji South, is one of seven to boost gas production in Africa’s biggest crude producer. Nigeria had been encouraging investments in gas infrastructure to improve supplies to power companies.

UBA
Investment in gas infrastructure has also received support from the Government due to its diversification programme which intends to reduce the influence of oil on the Nigerian economy.

How they intend to raise the capital
Seplat‘s Chief Executive Officer, Austin Avuru, said both Seplat Petroleum and NNPC will provide 60 percent of the funds as equity, while ANOH Gas Processing will source the balance as debt.

He added that NNPC and Seplat Petroleum have already committed $100 million for the project capital.

“BOTH PARTIES ALREADY HAVE EACH CONTRIBUTED $100 MILLION IN EQUITY.

“THERE WILL BE ANOTHER EQUITY INJECTION AND AT THE BACK END OF IT WILL BE DEBT.’’

According to the Chief Executive, ANOH will target local customers and has the capacity to double production. However, Avuru said it depends on domestic demand and the availability of feeds, including third-party gas.

The plant has an initial capacity of 300 million standard cubic feet per day, and will process wet gas from the unitized upstream fields at OML 53 and OML 21.

It is scheduled to begin production by the last quarter of 2020 and the first supply is targeted in 2021.

About Seplat Petroleum
Seplat Petroleum is an independent indigenous Nigerian upstream exploration and production company with a focus on Nigeria.

This should be the biggest multi-million dollar project in the south-east since 1999 (If you can think of a bigger one, i’d like to know)...and it’s by a son-of-the-soil! Just goes to show how the S-E has been neglected for decades!

I remember there was talk some years back of Shell planning to build an even bigger gas plant in the same LGA, but as with most plans for big ticket projects aimed at the S-E (that are not built by a Nwafor) it’s still on the drawing-board getting close to a decade now!

Kudos to the urbane gentleman Dr A B C Orjiakor!

Seplat should also build something similar in Anambra, I think Nestoil have dis in plan

chiefobdk:
Seplat should also build something similar in Anambra,
I think Nestoil have dis in plan

I've been hearing of the NESTOIL one for some years now.....i think theirs is a gas-fired power plant.

The main thing i want to see happen is supply of gas-fired power to industrial clusters in the five south-east states. Of course some cities like Aba already have their own dedicated power plant (GEOMETRIC), but i think its take-off being delayed by the dispute they have with Emeka Offors company.

When Obiano started his first term, there was talk of a company (i think its name was Seven or something like that) supplying gas for domestic and industrial use in Anambra. That fizzled out and nobody talks about it anymore or cares to ask what happened. That's how we are....projects are either delayed or forgotten about after much fanfare, yet nobody asks any questions and the gov't can then get away with breaking promises they've made! We make governance too easy for them!

Xander85:


I've been hearing of the NESTOIL one for some years now.....i think theirs is a gas-fired power plant.

The main thing i want to see happen is supply of gas-fired power to industrial clusters in the five south-east states. Of course some cities like Aba already have their own dedicated power plant (GEOMETRIC), but i think its take-off being delayed by the dispute they have with Emeka Offors company.

When Obiano started his first term, there was talk of a company (i think its name was Seven or something like that) supplying gas for domestic and industrial use in Anambra. That fizzled out and nobody talks about it anymore or cares to ask what happened. That's how we are....projects are either delayed or forgotten about after much fanfare, yet nobody asks any questions and the gov't can then get away with breaking promises they've made! We make governance too easy for them!

Nestoil is building pipeline from Rivers to delta. I think he plan to branch to Anambra. He is building or plan to build power plant in Okija his hometown, the gas pipeline will supply d power plant and other industries