Seplat Strikes 19m Barrels of Oil, 157 Bcf of Gas in Imo

Seplat Energy has announced the discovery of oil and gas deposits in commercial quantities through its Aku-01 exploration well in onshore Imo State, under Oil Mining Lease (OML) 53.
The discovery, which was not part of the company’s original exploration programme, is estimated to contain 19 million barrels of oil and 157 billion cubic feet (bcf) of gas, according to preliminary assessments contained in its latest unaudited earnings report released on Thursday.
Seplat said the well was being completed as a potential future production well, with plans to connect it to existing infrastructure to facilitate early commercialisation of the discovered resources.
The company added that the discovery had also reduced exploration risks associated with four nearby prospects, one of which it plans to test during the next phase of exploration.
Encouraged by the initial results, Seplat said it was considering commencing the second phase of exploration in the oilfield as early as next year. Five reservoir intervals were identified during the discovery.
Seplat holds a 40 per cent participating interest in OML 53, which it acquired from Chevron in 2015, while its joint venture partner, NNPC Limited, owns the remaining 60 per cent.
The discovery comes as Nigeria intensifies efforts to raise crude oil production to three million barrels per day by 2030, from the current level of about 1.72 million barrels per day, including condensates.
The Federal Government has introduced several measures to attract investment into the oil and gas industry, including deep offshore tax incentives, more transparent oil block licensing rounds and the implementation of a drill-or-drop policy.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, recently disclosed that the regulator had approved field development plans valued at more than $57 billion over the past two years to help advance projects towards final investment decisions.
Meanwhile, Seplat recorded a 12.5 per cent increase in revenue to N3.8 trillion in the first nine months of the year, compared with the corresponding period of the previous year, driven by improved crude oil sales.
Its profit before tax rose by more than 50 per cent to N1.3 trillion, while profit after tax increased to N355.6 billion from N146.6 billion in the same period last year.
However, the company’s total assets declined by 6.3 per cent to N8.2 trillion, compared with N8.7 trillion at the end of last year.