Seplat has capital, talents to optimize acquired MPNU assets _ Roger Brown

Sopuruchi Onwuka

Rising indigenous upstream player, Seplat Energy, has restated it resolve to mobilize adequate human and material capital in generating prime values from operated petroleum and sundry infrastructure assets in the Nigeria energy sector.

Managing Director, Mr Roger Brown, told industry delegates and policy drivers at a conference in Abuja that the company has access to ample resources and talents it needs to generate premium economic benefits from its rising portfolio of assets in the upstream petroleum industry.

The Oracle reports that Seplat Energy which has been the most transparent operator in the Nigerian upstream petroleum industry has a unique strategy that emphasizes inorganic asset acquisitions as its most visible growth pattern.

The company which was established on brownfield asset acquisition has remained on the same growth route, closing more and more acquisitions deals that now position it as one of the largest African petroleum independents with large operating portfolios spanning across upstream petroleum production, gas processing, industry infrastructure management and new energy ventures.

 In a hard won battle to win the assets of divesting Mobil Producing Nigeria Unlimited in the country’s conventional offshore terrains, Seplat inherited a large assortment of assets including production facilities, export pipelines and terminals, condensate extraction facilities and significant volumes of brownfield gassy oilfields.

It would be recalled that ExxonMobil affiliates in the country have been infamous with low investments in gas valorization, thriving on gas reinjection as tool for enhanced oil recovery and flare reduction.

With Seplat, reputable for gas valorization investments in the country, now taking over the MPNU assets; concerns have been on the elasticity of the company’s existing capacity to cope with rapidly expanding and diversified portfolios across the full industry loop.

Mr Brown doused analysts’ curiosity with a pledge that the company would continue to drive growth with proceeds of value optimization.

His remarks, The Oracle reports, addresses wider concerns over the capacity of some indigenous companies to optimize the value of operated assets they acquired under the just concluded wave of large scale portfolio divestments by international oil companies that have cut their sizes in the country.

In speaking on the inclination of the indigenous energy sector to succeed, Mr Brown pointed at a pool of incredible talents that are committed to deliver value and boost the fortunes of operators and the country at large.

 “For us at Seplat Energy, when we completed the Mobil Producing Nigeria Unlimited (MPNU) acquisition last year, we were ready for it. This consolidates the fact that we are here for the long term. The assets are prolific in oil and gas, and we will continue to develop and optimize these resources,” he declared.

He stated that the company’s tradition of transparent operations and open disclosure easily attract operating capital. He made it clear that stability in business and business spheres would continue to attract capital.

 “When we look at capital, we consider as many forms of capital that could be accessed. For us, capital is treated as a partner, and in that partnership, everything is told and nothing is held back. It is full disclosure for us. Hence, capital access has been very critical to our success as a company.

“Beyond committing funds to acquire assets, sufficient money should be set aside to develop the acquired assets. Seplat Energy has been able to redeploy capital and optimise growth of the business. There is indeed capital to develop these assets that were acquired and indigenous energy companies would continue to demonstrate this,” he stated.

Mr Brown also noted that Seplat’s open and sincere host community engagements have paved way to peaceful relationship and freedom to operate. He said the company has developed and serviced clear ways of engagement with its communities.

Seplat Energy, he noted, sees engagement with its communities and other stakeholders from the long-term horizon.

“A very clear way of engagement is what Seplat Energy and the indigenous players bring to the party. Shared prosperity is very important. Freedom to Operate has been our success, and this is the substance of our community engagement model,” Brown buttressed.