‘Seplat is Optimistic about Long Term Growth’ - Avuru

Chinazor Megbolu

The Chief Executive Officer, Mr. Austin Avuru has said that Seplat Petroleum is optimistic about its long-term growth and success.

He said this on Monday during the organisation’s Outlook for 2020 in Lagos.

According to him, “We remain optimistic about our long-term growth and success”.

Avuru stated this Seplat recorded 6.5 per cent revenue loss in 2019.

“The emergence of the COVID-19 pandemic in the first quarter of 2020, as well as pressure on oil prices in March, have placed a premium on solid financial management that focuses upon low-cost production, robust cash management, a strong balance sheet and focused investment in high-return projects for sustainable future growth.

“The business is hedged against low oil prices and a significant proportion of our revenues now come from gas, which offers further protection from oil price volatility. The Company has low production costs and can remain profitable even at lower oil prices,” Avuru said.

He explained that Seplat have significant cash resources available and will manage its finances prudently in 2020. He also added that they are expecting to invest just US$100 million of capital expenditure (US$50 million spent in Q1 2020), with a target of three new wells across our portfolio.

“We will also continue to focus on our investments in gas and the completion of the ANOH project remains a major priority.

“At present we are targeting 2020 production of between 47-57 kbopd, including Eland production of 6-10 kbopd, subject to continuous evacuation is possible.

“Seplat has been tested in previous adverse conditions and we are confident that the stronger and more diverse business we operate today will be even more resilient against these unprecedented market events,” he said.

Furthermore, Avuru noted that the integration of Eland Oil & Gas PLC will position the Group strongly when the market recovers. According to him; “we are pleased to report that on 17 March 2020, OML 40 produced a record 17 kbopd as recorded by its LACT”.

Editing by ‘Biodun Soyele