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Tag: Mrs. Eleanor Adaralegbe

  • ESG, Regulatory Frameworks Driving Energy Investments In Africa – Seplat CFO

    ESG, Regulatory Frameworks Driving Energy Investments In Africa – Seplat CFO

    Environment, Social and Governance (ESG) standards and regulatory frameworks in African countries significantly shape oil and gas investments in the continent, as they influence costs, compliance requirements, and project risk profiles.

    The Chief Financial Officer, Seplat Energy, Mrs. Eleanor Adaralegbe, said this during a panel session at the Africa Oil Week (AOW) Conference & Exhibitions in Cape Town, South Africa.

    Eleanor, whilst speaking on the theme ‘ESG Investing: What strategies make African deals attractive in 2024?’, said to ensure compliance and manage ESG-related risks effectively, companies should conduct thorough due diligence, align with international standards, engage with stakeholders, implement robust policies, and maintain transparent reporting.

    “Clearly, ESG standards and regulatory frameworks in African countries significantly shape oil and gas investments. So, we need to take the right actions now. These actions not only mitigate risks but also create opportunities for enhanced stakeholder trust, improved financing options, and long-term project success,” the Seplat Energy CFO stressed.

    According to her, investors assess potential projects by screening them against ESG benchmarks, and projects that fail to meet minimum ESG standards are often excluded.

    She said: “Comprehensive due diligence is conducted to identify ESG risks, including environmental impact, community relations, and governance practices. Investors may use frameworks like the Equator Principles or International Finance Corporation (IFC) Performance Standards. In this regard, Seplat Energy is ahead, proactively setting up to ensure readiness very much aligned with Strategy.

    “Seplat Energy has shown commitment, which is driven by the top board, the special board committee on ESG matters, and the sustainability management committee chaired by the CEO.”

    Eleanor advocated the need for operators in the energy space to building a sustainable business through social development, focusing on environmental care and reporting as well as maximizing returns for shareholders. With a mission to deliver the energy transition in Nigeria through upstream, midstream and new energy pillars, she identified the roles of strong governance and HSE, as is the case with Seplat Energy’s operations in Nigeria.

    Investors, she explained, are increasingly pushing for energy transition projects, such as natural gas developments that serve as a bridge to renewable energy; with also a growing interest in carbon offset initiatives linked to oil and gas operations, which could help mitigate climate impacts.

    “ESG criteria are integrated into the investment process through rigorous screening, due diligence, and ongoing monitoring, with a focus on environmental impacts, social responsibility, and governance practices. Investors in African oil and gas projects are particularly concerned with climate impact, community relations, regulatory compliance, and transparency,” the Seplat CFO maintained.

    She added: “ESG considerations significantly influence the structuring and valuation of oil and gas deals in Africa by affecting perceived risks, financing options, and project attractiveness. Strong ESG performance can lead to favorable financial terms, and key to long term viability of any business while poor ESG practices can result in reduced valuations, higher costs, and a limited pool of potential investors.

    “ESG standards and regulatory frameworks in African countries significantly influence investments by shaping the operational requirements, risk profiles, and overall attractiveness of projects. Companies must navigate a complex landscape of varying regulations and expectations related to environmental protection, social development, and governance to ensure compliance while managing ESG-related risks effectively.”

  • Seplat Energy recognised as Best in Sustainability Reporting at ICAN/NGX RegCo Awards

    Seplat Energy recognised as Best in Sustainability Reporting at ICAN/NGX RegCo Awards

    Seplat Energy Plc has emerged winner of the Best in Sustainability Reporting Award at the maiden Corporate Reporting Award, organised by the Institute of Chartered Accountants of Nigeria (ICAN) and NGX Regulation Ltd (NGX RegCo).

    The recognition was announced at the ICAN/NGX RegCo Awards ceremony held in Lagos. It was a platform to recognise the top 30 most capitalised companies listed on the Nigerian Exchange Ltd (NGX) for the 2022 financial reporting year.

    The awards underscored ICAN and NGX RegCo’s shared commitment to fostering transparency, accountability, and international best practices within the private sector. The evaluation criteria included financial reporting, corporate governance, and sustainability reporting.

    Speaking at the ceremony, the president of ICAN, Dr. Innocent Okwuosa, lauded NGX RegCo for ensuring better disclosures and reporting among listed companies.

    Okwuosa noted that corporate reporting over time had evolved, as there was a shift from a primary focus on financial reporting to the increasing request to incorporate social and environmental disclosures. He stated that the latter had evolved and had been differently propagated, including but not limited to environmental, social, and governance (ESG) disclosures and late sustainability disclosures.

    The ICAN boss explained that good corporate reporting must reflect the best elements of corporate governance, financial reporting, and sustainability reporting, adding that the maiden edition of the award is limited to 30 companies listed on the NGX for ease of administration but will be extended to all the listed companies in the future.

    The CEO of NGX RegCo, Mr. Olufemi Shobanjo, in his address said that transparency is one of the key drivers of any economy. Shobanjo stated that transparency ensures full disclosure of information by entities and that such information is easily accessible to members of the public to make informed decisions.

    The award was received by the CFO-Designate, Seplat Energy Plc, Mrs. Eleanor Adaralegbe, and the Director, External Affairs & Social Performance, Mrs. Chioma Afe.

    In 2021, Seplat Energy unveiled a new corporate strategy based upon two ambitions, to Build a sustainable business and Deliver energy transition. Clearly each of these has sustainability at its heart, and each is made up of three pillars in which Seplat Energy defines its business strategy in terms of specific initiatives that promote sustainability across our business activities. “Now, for Seplat Energy, sustainability is embedded at all levels and across all operations”, Adaralegbe said whilst commending ICAN and NGX RegCo for the recognition and sustained display of professionalism.

  • Seplat Energy Achieves 2.3 million Hours Without LTI in Q1 2024

    Seplat Energy Achieves 2.3 million Hours Without LTI in Q1 2024

     Seplat Energy PLC, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has announces its unaudited results for the three months ended 31 March 2024, declaring US 3 Cents dividend per share for the period.

    For the period under review, production averaged 49,258 barrels of oil equivalent per day (boepd), down 4.8% on prior period (3M 2023: 51,720 boepd), but 5.7% above Q4 2023 production, and towards the upper end of 2024 guidance (44,000 boepd – 52,000 boepd).

    Seplat Energy also achieved more than 2.3 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1 2024.

    The Company also applauded the progressive moves taken by President Bola Tinubu and the industry regulators, following the signing of the executive orders that will provide fiscal incentives in Nigeria’s gas and midstream businesses. In addition, an executive order was signed and gazetted into law, which has potential to materially improve our contracting process and bring the right level of efficiency that will support costs reductions. This can drive the much-needed efficiency gains across our industry.

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently lifted the domestic gas price to $2.42/Mscf supporting revenue generation and re-emphasising the government’s commitment to develop Nigeria’s gas resources, a factor aligned with Pillar 2 in our strategy.

    According to Seplat Energy, the message to investors on the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited (MPNU) is unchanged. Dialogue between key parties is active and constructive, and the company remains confident that a conclusion will be reached on the transformational acquisition.

    Operational highlights

    • Production averaged 49,258 boepd, down 4.8% on prior period (3M 2023: 51,720 boepd), but 5.7% above Q4 2023 production, and towards the upper end of 2024 guidance (44,000 boepd – 52,000 boepd).

    • ANOH gas plant pre-commissioning works ongoing. Seplat maintains its first gas target in 3Q 2024.

    • Sibiri-1 on stream a few weeks after FDP approval, work ongoing to commence production from Sibiri2.

    • Discovery of hydrocarbons in previously untested deep reservoirs at Sapele-37 and Okporhuru-9.

    • Carbon emissions intensity: 29.4 kg CO2/boe (3M 2023: 26.4 kg CO2/boe). End of Routine Flaring (“EORF”) projects are on track, with EORF expected in H2 2025, these will deliver a material reduction in emissions intensity.

    • Achieved more than 2.3 million hours without Lost Time Injury (“LTI”) at Seplat-operated assets in Q1 2024.

    Financial highlights

    • Revenue $179.8 million, down from $331.0 million in 3M 2023 (after adjusting for underlift and overlift oil volumes, 3M 2024 adjusted revenues of $236.3 million, against $255.6 million in 3M 2023).

    • Average realised oil price $86.17/bbl (3M 2023: $82.32/bbl); average realised gas price $3.11/Mscf (3M 2023: $2.88/Mscf).

    • Unit production opex of $9.6/boe, (3M 2023: $9.0/boe).

    • Cash generated from operations of $16.8 million, primarily due to timing of liftings, $95 million received in April for volumes lifted in March, down from $145.0m in Q1 2023. Capex invested of $47.1 million (3M 2023: $44.7 million)

    • Balance sheet cash down to $335.8 million (YE 2023: $450.1 million), $128 million MPNU cash deposit not included.

    • Net debt at end March increased to $385 million (Dec 2023: $305 million), a further $19.3 million of RBL borrowings were repaid in the quarter. Net Debt to EBITDA was 0.9x.

    • Q1 2024 dividend declared of US3.0 cents per share.

    Corporate Updates

    • On 1st April 2024, Mr. Udoma Udo Udoma became Independent Non-Executive Chairman and Mr. Bello Rabiu became Senior Independent Non-Executive Director of the Seplat Energy Board.

    • On 1st May 2024, Mrs. Eleanor Adaralegbe will join the Board of Seplat as an Executive Director and will succeed Mr. Emeka Onwuka as Chief Financial Officer on 21st May 2024.

    • Full year guidance unchanged. Production 44,000-52,000 boepd, capex $170 million – $200 million.

    • Working with NNPC and government to conclude the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited (“MPNU”). We remain confident that President Tinubu’s administration will approve the transaction.

    Post-reporting period events

    • NMDPRA increased the domestic market gas price to $2.42/Mscf from $2.18/Mscf, effective 1 April 2024. New pricing will be applied to approximately 30% of gas volumes.

    • On April 14th, 2024, after approximately 2 years of outage, Zone-6 of SPDC operated Trans Niger Pipeline (“TNP”) resumed operations, four months ahead of management’s expectations.

    Commenting on the results, Roger Brown, Chief Executive Officer, Seplat Energy Plc, said: “Seplat Energy continued its trend of strong operational performance in the first quarter. Oil production on OMLs 4, 38, 40 and 41 outperformed expectations, benefitting from low pipeline losses and deferments, which were ahead of plan. Cash flow was down in the first quarter, but this is largely due to timing difference of lifting oil from the terminals. The business remains strong, production is firmly on track this year and price realisations remain supportive of cash generation.

    “In our FY 2023 results we outlined several growth opportunities for 2024. The first of these to start generating revenue for Seplat is Sibiri, which came on stream just a few weeks after the FDP approval was received from NUPRC. At Abiala (a marginal field within OML 40), the drilling programme is on track to start during 2Q. We were delighted to see resumption of operations on the Trans Niger Pipeline in April, approximately four months ahead of plan. Access to the pipeline will enable us to increase production from OML53, as well as providing the primary export route for condensate from AGPC, which remains on track for first gas in 3Q 2024.

    “Looking further forward, we are pleased to share that we discovered hydrocarbons in deeper reservoirs than had previously been tested at Sapele-37 and Okhorpuru-9. The initial results are promising, again highlighting the world class quality of the geology in Nigeria.

    “In Nigeria, we were pleased to see more progressive actions taken by President Tinubu and the industry regulators. In March, the President signed executive orders that will provide fiscal incentives in our gas and midstream businesses. In addition, an executive order was signed and gazetted into law, which has potential to materially improve our contracting process and bring the right level of efficiency that will support costs reductions. We applaud the change, which can drive much needed efficiency gains across our industry. More recently NMDPRA lifted the domestic gas price to $2.42/Mscf supporting revenue generation and re-emphasising the government’s commitment to develop Nigeria’s gas resources, a factor aligned with Pillar 2 in our strategy.

    “Our message to investors on MPNU is unchanged. Dialogue between key parties is active and constructive, and we remain confident that we can reach a conclusion on this transformational acquisition.”