What we do
How we create value
Our business model leverages our core strengths and experience to create long-term value and shared prosperity for all our stakeholders.
Inputs
Jobs created via Seplat operations
98%
of our production is Seplat operated
Unified and motivated workforce
450+
multi-discipline employees
Strong financial management and access to capital
US$333m
Cash at bank (as at 31/12/19)
Effective HSSE and risk management
0.00
LTIF
Good corporate governance
88%
Corporate Governance Rating System score
Strong relationships with host communities
US$71m
invested in our communities since 2010
Our core activities
1. Acquire
To date, we have acquired direct interests in five blocks and a revenue interest in one further block, located in the onshore and swamp areas of the Niger Delta. We will continue to pursue new acquisition and farm-in targets to help us grow reserves and production.
2. Explore & appraise
We will continue to appraise and test upside at our producing fields and also have a number of discovered but undeveloped discoveries on our blocks, some of which may be considered as appraisal targets in the future.
3. Develop
In recent years, Seplat has been one of the most active drillers in Nigeria and has successfully undertaken and completed significant facilities and infrastructure projects on a fast-track timetable and within budget.
4. Produce, process & sell
Seplat has consistently grown oil production capacity and has more than doubled gas production following significant expansion of the Oben gas processing plant. Our oil production is marketed and sold internationally to offtakers at the export terminal while our gas production is sold under a number of gas sales agreements wholly into the domestic market.
Outcome
Strong margin cash flow
- High grading of portfolio opportunities
- isciplined allocation of capital
The end result of our core activities is a profitable underlying asset base that generates strong margin cash flow and within which we have numerous organic reinvestment opportunities to selectively redeploy this cash flow. We combin this with our access to inorganic growth opportunities, for which we may need to secure additional external capital, to generate sustainable long term value for our multitude of stakeholders.
We have assembled a multi-disciplinary team that has an in-depth knowledge of the areas in which we operate, both below and above the ground. When considering both our organic and inorganic capital investment opportunities, we benchmark and high grade each option in the context of the whole portfolio so that we can be sure that each dollar of capital deployed is allocated to those opportunities that meet our technical, commercial and strategic requirements.
Value for our stakeholders
For our shareholders
- Capital growth
- Dividends
US$59m
Paid out to Shareholders in 2019
For government
- Royalty and tax revenue
- Foreign and local capital investments
US$684m
Payments and production entitlement to government reported in 2019
For Nigeria
- Infrastructure development
- Multilier effect from improved gas-to-power supply
1/3
of Nigeria’s current power generation can be underpinned by our gas production
For our host communities
- Economic empowerment
- Healthcare and aid
1,300+
Jobs created via Seplat operations
For our employees
- Training and development
- Shares awarded
71%
employees trained; 13,300 hours of training