Page 9 - AfrElec Week 05 2021
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AfrElec GAS-FIRED GENERATION AfrElec
acquisition of its stake in OML 17 with a com- Oil Co., a subsidiary of Eni (Italy). Shell said in a
bination of deals worth a total of $1.1bn. The statement at the time that these two companies
largest of these deals involved the acquisition of had sold equity stakes of 10% and 5% respec-
SPDC’s 30% stake for $533mn. (The company tively in OML 17 to TNOG.
said in a statement last month that it had paid OML 17 lies in the eastern Niger River Delta
SPDC the sum of $453mn at the closing of the and is currently yielding around 27,000 barrels
transaction and would pay the balance of $80mn of oil equivalent per day (boepd). It holds 1.2bn
“over an agreed period.”) barrels of oil equivalent in proven and probable
Two other transactions involved other share- (2P) reserves, and further exploration may raise
holders in OML 17 – namely, Total E&P Nigeria, that figure by another 1bn boe.
a subsidiary of Total (France), and Nigerian Agip
Seplat closes funding for Nigerian
gas processing plant
NIGERIA NIGERIA’S Seplat Petroleum has closed financ- was a key milestone, noting ANOH’s status as
ing for the ANOH gas processing plant (GPP), national priority project. Nigeria is pushing to
which will monetise gas in the country’s Imo expand the role of gas in its economy, to capi-
State for use in power generation. talise on its 5.7 trillion cubic metres of proven
In a statement on February 1, privately owned reserves. It wants to increase gas use in electricity
Seplat said it had raised $260mn in debt from a and heating, vehicle transport and in household
consortium of IBTC Bank, United Bank for cooking, and expand gas-based petrochemicals
Africa, Zenith Bank, FirstRand Bank, Mauritius production.
Commercial Bank, Union Bank of Nigeria and ANOH is on track for first gas in the fourth
FCMB Capital Markets. Thanks also to $420mn quarter of 2021, Seplat said last October. Shell is
of equity funding provided earlier, the project is handling the necessary upstream development.
now fully funded, the company said. The project “will be a significant supplier of
The ANOH GPP will handle up to 300mn gas to Nigeria’s power sector, supporting local
cubic feet (8.5mn cubic metres) per day of gas employment and the cleaner generation of
from oilfields in the Seplat-operated OML 53 power for Nigerian homes and businesses,” the
block and the Royal Dutch Shell-led OML 21 ANOH operating company’s managing director,
block. This gas will be used to replace dirtier and Okechukwu Mba, said. “We conservatively esti-
more expensive diesel-fired power plants. mate that the gas from AGPC will be enough to
Seplat is developing the project through a generate electricity for more than 5mn people.”
joint venture with state-owned NNPC. Its overall Seplat will continue diversifying its business
cost is now estimated at $650mn, down from an and invest more in gas, its CEO Roger Brown
original projection of $700mn. said.
The company said the closure of funding
Week 05 04•February•2021 www. NEWSBASE .com P9
