Seplat Petroleum Development Company Plc
Annual Report and Accounts 2016
Annual Report and Accounts 2016
2016 was a year in which Seplat faced a set of unprecedented challenges. The Company remained resolute in its response; delivering on what is in its control to restore operational and financial momentum, and at the same time make the business more resilient in the future.
The Challenge
Our solutions
- Growing our gas revenues
- Implementation of our oil hedging strategy
The Challenge
Our solutions
- Establishment of an alternative crude export route
- Strong community and stakeholder relations
The Challenge
Our solutions
- Strong financial discipline and risk management strategies
- Prioritise complementary portfolio expansion opportunities that can offset the current risk profile
Chairman's statement
“I am pleased to report continued success in our strategy of mitigating the impact of lower oil prices through the ongoing and significant expansion of our gas business.”
Executive summary
Seplat is a leading independent oil and natural gas producer in the prolific Niger Delta area of Nigeria and a leading supplier of gas to the domestic market.
2016 highlights
Working interest production (boepd)
-40%
Revenue
(US$m)
-55%
Gross profit
(US$m)
-71%
New cash flow from operations
(US$m)
+353%
Working interest 2P gas reserves
(2010 to 2016)
Working interest 2P liquid reserves
(2010 to 2016)
Total working interest 2P reserves
(2010 to 2016)
Chief Executive Officer's statement
“2016 has been our most challenging year since inception and whilst the obvious headwinds we have been faced with are clearly reflected in our 2016 results, we have responded effectively by focussing on the delivery of solutions to those challenges that are within our control.”
Corporate social responsibility
Shared value remains at the centre of our investment in Nigeria. Delivering a longstanding and positive social and economic legacy for our local stakeholders is our priority.
Nigeria's gas potential
Nigeria has one of the world’s largest reserves of natural gas that can underpin substantial power generation, which in turn is a key driver of economic growth and a higher standard of living.
Indigenous oil & gas companies are a critical part of the solution. These firms have a unique focus on exploiting Nigeria’s resources, building local hard and soft infrastructure, and establishing operations in ways that are beneficial to the Company and to the country.
An average of 2,000 homes in SSA can be powered by...
1MW
...our current gas processing capacity is
525MM scf/day...
...capable of underpinning almost
2,000mw worth of power...
...enough for approximately
4m homes
