Seplat eyes $700 million to develop Imo state’s oil field

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LONDON, April 24 – Nigerian oil company Seplat said on Wednesday it had taken a final investment decision to develop gas fields in the country’s Imo state and would raise $700 million for the venture in partnership with state-owned NNPC.

Seplat Chairman and co-founder A.B.C Orjiako told Reuters during a visit to London a decision had been taken to develop the Assa north and Ohaji south gas fields. He said the company was deepening its operations in the sector.

The company, which has dual listings in Lagos and London , is focusing heavily on gas investments, drilling and acquisitions to boost its gross output with the aim of tapping into demand for electricity. It now supplies around 30 percent of the gas required for power generation in Nigeria.

Orjiako said Seplat’s gas production stood at 525 million standard cubic feet (scuf) per day from 90 million scuf nine years ago.

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In 2013, Nigeria, which is plagued by blackouts, started selling parts of its moribund state electricity firm in a privatisation aimed at improving power supplies and attracting billions of dollars in investments, neither of which happened.

Most of the plants sold in that privatisation were gas-fired, operating below capacity due to inadequate gas supply.

Orjiaku said Nigeria had one of the highest cost per kilowatt of power but it produces less than 10 percent of its requirement. The bulk of electricity produced comes from diesel generators which is expensive and unreliable.

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Despite holding the top spot among Africa’s oil producers, Nigeria’s power generation and electricity grid are plagued by a lack of investment and poor infrastructure which leaves many people dependent on diesel generators.

Orjiaku said the sector could thrive once government relinquished its tight control on power generation.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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