Seplat’s investment in gas boosts revenue by 51 per cent
The company’s Chief Executive Officer, Austin Avuru, while fielding questions to journalists at the end of its 2014 yearly general meeting in Lagos yesterday, explained that the company has made huge investment in gas production, driven by an over US$300 million investment in gas development.
He added that the company would leverage on the expansion exercise to grow its revenue in the current year and years ahead
“We are now operating in mid stream by processing natural gas and crude oil development and delivery into the market. We have successfully made efforts in our gas development strategy by expansion of our gas processing facility in Oben. Seplat will take advantage of this to boost revenue from gas in 2015 and in the coming years.
“The new 150MMcfd Oben gas processing facility will take overall gross production capacity at the company’s assets up 300MMcfd in 2015 and the company intends to grow this further to at least 450 MMscfd by end 2017.”
On the company’s pioneer tax grant, Avuru explained that pioneer tax incentive granted to the firm has help top accelerate its growth in the areas of oil and gas production.
Avuru said the company followed the required process for application, adding that all the information and documentation required for the process were also provided.
The Company, according to him has fully re-invested the tax savings from the grant and has delivered verifiable results for stakeholders.
“There was a policy of pioneer tax grant status and we were qualified for that status. We applied and it was granted to us but because we are listed, we had to make full disclosure so that investors would know the impact of this on our bottom-line.
“We utilized the opportunity in a very fruitful and exemplary manner for all stakeholders. We reinvested it in our gas production business and also invested heavily on our oil business. Our increased production of oil and delivery of gas added too our bottom-line.”
He added: “Gas production rose from an average of 90mmscfd to a current level of around 200 MMscfd with a target of 300 MMscfd by the end of 2015. This increase has been driven by an over US$300 million investment in gas development over the tax holiday period.
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