Maximise production and cash flows from operated assets
The development stage of the upstream value chain is where the majority of capital investments are usually made. It is imperative that we do this well, maintaining strict cost control, implementing the most appropriate technical solutions and organising ourselves and our service providers so that we deliver projects on time and within budget. This enables us to generate strong margins and cash flows from our production, which in turn underpins our ability to fund our work programme. At the same time, we seek to improve operational efficiency by maximising uptime, reducing reconciliation losses, mitigating asset concentration and sole reliance on third party export infrastructure.
Move up 2C resources into 2P reserves category
Our drilling campaigns have, in addition to development wells, an appraisal component built in so that we are constantly testing upside potential at our assets, gathering and interpreting new information to allow us to maximise hydrocarbon recovery from the reservoirs and capitalise on low risk reserve addition opportunities. We also recognise the importance of exploration as a means of growing reserves. It is our intention that we will return to our objective of drilling at least one exploration well per year when oil prices and production recover and stabilise, with a focus on prospects that if successful can offer rapid monetisation, utilising our existing infrastructure where possible.
Commercialise and produce gas reserves
Nigeria has a vast natural gas resource that, to date, has barely been developed. We see the commercialisation and monetisation of Nigeria’s natural gas resource as an attractive long-term opportunity and have strategically positioned ourselves by developing the Oben facility as a core gas processing hub through which Nigeria’s greatest demand centres can be accessed and supplied whilst the acquisition of an interest in OML 53 positions Seplat as a key participant in what will be one of Nigeria’s largest greenfield gas developments. During periods of oil price weakness, the gas business takes on added importance. Gas prices are de-linked from oil price and have steadily increased to commercial levels, meaning that we can confidently plan, finance and invest in gas opportunities independent of oil price dynamics.
Pursue a focused acquisition and farm-in strategy
We see a rich opportunity set and a wide range of growth opportunities in Nigeria including further asset divestments from the Major IOCs, asset farm-in and acquisition opportunities amongst the independent E&P sector as liquidity in the secondary asset inevitably increases and future licensing awards occur. Our focus is on securing blocks in the onshore to shallow water areas of the Niger Delta that offer near-term production growth, cash flow and reserve replacement potential.
Be a highly responsible corporate citizen
Being a highly responsible and accountable corporate citizen is a key priority of ours. We recognise that minimising the effects of our activities on the environment, understanding local issues, positively contributing to our local communities, being a first-rate employer and providing our staff with a safe working environment and career development opportunities are essential enablers that allow us to achieve our goals. Underpinning all of this is a strict adherence to strong corporate governance and business integrity throughout our organisation.