Independent oil and gas players in Nigeria must prioritise asset integrity, fix obsolescence and consciously pursue life extension strategies if they are to optimise the value of their assets, boost investments returns and ensure resilient systems, the Chief Executive Officer of Seplat Energy, Engr. Effiong Okon has said.
Engr. Okon made the remarks during Panel Session Two (2) of the 49th Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers (SPE) in Lagos themed “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape”.
He said critical equipment must be maintained at top quartile performance level of 95 per cent uptime to minimise unscheduled deferment. “You must follow your oil and gas molecules from the reservoir to export. The approach is all encompassing – you must understand your reservoir capacity, well capacity, your flow line and surface facilities. These mean a total understanding of the asset,” he said.
On cutting operational costs further, Okon pointed to effective water treatment, ending routine flares and monetizing every gas molecule as against paying penalties on flares, trimming redundant evacuation routes, and strengthening logistics and outsourcing capacity as measures with significant impact.
The Seplat CEO equally called for deliberate investment in human capital to really understand the sub-surface, wells and facilities. According to him, the right knowledge could then be driven by requisite capital raising, which ultimately drives value optimization. He, therefore, called on SPE to raise more engineers to cover the skills gap and drive efficiencies in the Nigerian oil and gas space.
Speaking on Seplat Energy’s commitment to advancing shareholders’ value, Engr. Okon said the company had returned massive value to shareholders in form of share appreciation and dividend payouts over the year whilst also balancing that with capital allocation targeted at further building the company for the future.
He said the company had distinguished itself in the area of gas development and performance domestically, saying that the shallow water business has got about 12TCF of gas, which will be unlocked, accelerated and monetized more than the company had ever done.
“We are indeed trailblazers when it comes to domestic gas development. We are also doing a lot of Liquefied Petroleum Gas (LPG) in the domestic market to displace biomass and contribute to addressing carbon intensity issues,” he said.
