The Federal Government has urged oil and gas companies to come up with creative ways to raise money so they can increase their investment and address the many issues the industry faces, particularly by utilizing the country’s capital market.
Speaking at the Seplat Energy anniversary to celebrate its ten years of dual listing on the Nigerian Exchange Limited (NGX) and London Stock Exchange, held in Lagos yesterday, Minister of States for Petroleum Resources Heineken Lokpobiri gave his assurance that the government would continue to create an enabling environment and regulatory framework for companies to operate in a more conducive manner as prescribed by the Petroleum Industry Act (PIA).
As demonstrated by Seplat Energy, he believes that enterprises in the industry must implement strong corporate governance frameworks to draw in investors and maintain their trust.
“We need to solve our own problems; it’s time for us to develop domestic solutions to solve our energy problems,” he declared.
“Accessing capital from the West may become more challenging if Saudi Arabia and the United Arab Emirates increase their investments in oil and gas, as they possess the necessary funds while we do not.”
“So, we need to come up with some creative ways to raise funds through the stock markets. By utilizing the most advanced technologies, we are dedicated to maintaining our oil and gas production in a more responsible and environmentally friendly manner.”
In light of the current attractive pricing, he continued, the nation has to increase its production capacity. In assessing the company’s performance over the previous ten years, Roger Brown, Chief Executive Officer of Seplat Energy, stated that the energy giant produced $1.7 billion in Free Cash Flow (FCF) and contributed over $57 million to community projects, particularly in the fields of empowerment, health care, and education.
He emphasized that over the last ten years, the company has invested $1.6 billion in capital expenditures and returned $575 million in dividends.
“We have spent a total of $1.6 billion in capital expenditures as a result of our ambition to grow our business, which has been supported by our strong cash generation.”
After ten years of being listed on the exchange, he claims the company has provided tremendous value-enhancing measures in both operations and financials. He mentioned that from 2014 to 2023, the company’s petrol revenue climbed by 350% to $123.4 million.
“Since 2014, we have accomplished substantial purchases that have unlocked potential value. Seven onshore blocks make up our present portfolio; in 2016, we bought Chevron’s OML53, which was transferred and led to the creation of the ANOH gas plant; in 2019, we acquired Eland; and in February 2022, we signed an SPA with Exxon for MPNU.”
In an effort to establish itself as a significant oil player in Nigeria, the business raised $500 million in capital on the LSE and NGX. He continued by saying that from 2014 to 2023, the business gave $575 million back to shareholders as a result of the IPO.
