Seplat Chief Executive, Engineer Effiong Okon, Outlines Key Strategies For Independent Oil & Gas Players To Optimize Assets Value, Boost ROI

Seplat Chief Executive

 

OpenLife News reports that Chief Executive Officer of Seplat Energy, Engr. Effiong Okon, says independent oil and gas players in Nigeria must get asset integrity right, fix operational obsolescence and pursue asset life extension to optimize value and boost returns.

Okon stated this during Panel Session 2 of the 49th Nigeria Annual International Conference and Exhibition, NAICE, organized by the Society of Petroleum Engineers, SPE, in Lagos.

The theme was “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape”.According to him, equipment reliability is non-negotiable.

“Critical equipment must be maintained at top quartile performance of 95 per cent. Meaning that 95 per cent of the time, equipment should be running. When you do all that, you drive down unscheduled deferment,” he said.

He added that operators must take an end-to-end view of assets.

“In fact, you must follow your oil and gas molecules from reservoir to export. The approach is all encompassing – you must understand your reservoir capacity, well capacity, your flow line and surface facilities. These mean a total understanding of the asset,” he emphasized.

Cost Reduction Levers

On cutting operating costs, Okon listed effective water treatment, ending routine flaring, and monetizing every gas molecule instead of paying penalties.

Other measures include reducing redundancies in evacuation routes, and building capacity around logistics and outsourcing.

Human Capital and Capital

The Seplat Energy  CEO also called for deliberate investment in human capital to deepen understanding of the sub-surface, wells and facilities.

“The right knowledge could then be driven by requisite capital raising, which ultimately drive value optimization,” he said.
He urged SPE to help close the skills gap by raising more engineers to drive efficiencies in Nigeria’s oil and gas space.

Seplat’s Gas Play

Speaking on Seplat’s commitment to shareholders, Okon said the company has returned massive value through share appreciation and dividend payouts, while balancing that with capital allocation for future growth.

He said Seplat has distinguished itself in domestic gas development, with about 12TCF of gas in its shallow water business set to be unlocked and monetized at a faster pace.

“We are indeed trailblazers when it comes to domestic gas development. We are also doing a lot of Liquefied Petroleum Gas (LPG) in the domestic market to displace biomass and contribute in addressing carbon intensity issues,” he added.