Page 18 - AfrOil Week 25

AfrOil NEWS IN BRIEF AfrOil

Financial: debt free with $15.7mn cash on hand guarantee the Libyans the continuation of sala-
at end May 2020; dividend of $2mn declared on ries and services and maintain the country’s for-
24 April 2020 payable by the end of June 2020, eign exchange reserves. It warned against dealing
bringing a total distribution in respect of FY with the country’s vital resources as war spoils,
2019 of $3.0mn, representing an annual yield of saying that the attacks were a way to blackmail
7.8% based on the closing share price of June 16, NOC and prevent it from doing its work for the
2020; Tanzania Petroleum Development Corp. benefit of all Libyans. That makes these oil facil-
(TPDC) now fully current with payments as ities a hotbed of turmoil and war that will only
of end May 2020; Tanzania Electric Supply Co. bring destruction to these vital facilities.
(TANESCO) expected to settle all remaining National Oil Corp., June 17 2020
arrears.
Wentworth’s Mnazi Bay producing gas asset:
Production over the period from January 1 to INVESTMENT
May 31, 2020, averaged 58.2 mcf per day (gross).
This period covers the traditional rainy season Intra-group transfer of
when hydroelectric power displaces natural
gas-powered electricity generation, as well as the OML 4, OML 38 and OML
decreased industrial and consumer demand as a
result of the temporary Government restrictions 41 from Seplat Petroleum
put in place to reduce the spread of COVID-19.
Demand in H2 2018 and H2 2019 was Development to Seplat West
approximately 12% higher than H1-2018 and
H1-2019, respectively. Given this historical Libya’s NOC issues Seplat Petroleum Development, a leading Nige-
context, the expected rebound in industrial rian indigenous oil and gas company dual-listed
customer demand from the lifting of COVID- statement on conditions on the Nigerian Stock Exchange and London
19 restrictions, as well as the pick-up in vol- Stock Exchange, today announces the comple-
umes in June 2020, management expects a at Sharara oilfield tion of transfer of the business activities and
significant increase in natural gas demand in assets of OMLs 4, 38 and 41 from the Holding
H2-2020. With no operational disruptions due National Oil Corp. (NOC) expresses its deep Company to its wholly owned Subsidiary Seplat
to COVID-19, the existing well stock at Mnazi concern about the continued forced-closures West. Following regulatory and partner approv-
Bay is strongly positioned to meet this expected of oil facilities, which negatively impacted the als, the transfer is effective January 1, 2020.
surge in demand. surface facilities, transport pipelines and crude This Intra-Group transfer has been planned
As previously announced, the Mnazi Bay JV oil tanks, which led to the collapse of one of the for some time and will not result in any change
Partners have agreed to a limited 2020 firm work tanks at the Sharara field. to the current business strategy for any of the
programme totalling approximately $4.6mn net In addition to the almost daily leaks of trans- assets nor will it affect the way in which the
to Wentworth. This programme will ensure that port pipes and their negative effects on the sur- Seplat Group commercially operates. Therefore,
Mnazi Bay maintains well integrity and is primed rounding environment there, NOC’s specialists the operatorship of the asset remains with Seplat
to support the growing in-country demand. predicted that dangerous consequences for the under the Joint Operating Agreement (JOA),
Katherine Roe, CEO of Wentworth, said: millions of barrels stored, as they are vulnerable as the transfer to an affiliate of Seplat under the
“The health and safety of our workforce across to explosions and mass destruction in the event terms of the JOA is permitted.
our assets and offices is our priority and I’m that the fields and ports turn into military oper- The transfer of OMLs 4, 38 and 41 out of
grateful to the entire team for their dedication ation areas instead of oil areas. Seplat Plc into Seplat West results in seven
and hard-work to ensure that our business can At this time, NOC expresses its regret for the wholly owned subsidiaries – Newton Energy;
continue to operate safely and seamlessly during militarisation of the oil facilities. It nevertheless Seplat Petroleum Development Co. UK; Seplat
this challenging time. As a result of their efforts, continues to fulfill its responsibilities, as special- East Onshore; Seplat East Swamp Co.; Seplat Gas
we have seen no impact on operational perfor- ised teams conduct many technical consulta- Co.; Eland Oil and Gas and Seplat West, with no
mance during the COVID-19 pandemic. tions, follow public safety requirements, process operating oil and gas assets directly held in the
“Despite these challenges and Tanzania-spe- safety and implement precautionary measures Holding Company.
cific reduced demand due to above average in anticipation of any emergency. Experts from The new structure of the Seplat Group is
rainfall, Wentworth continues to demonstrate NOC and its partners have concluded that there consistent with Seplat’s efforts to simplify its
business resilience with a strong balance sheet, is a need to empty all crude oil stocks and also structure and designed towards segregating the
and operational readiness and flexibility. to provide storage capacities to store condensate businesses of the Group in a more efficient man-
“In the second half of 2020, we expect to sup- associated with the produced gas so that the gas ner thereby reducing risk, cost and complexity.
ply increased gas volumes now that the rainy production does not stop after a few days. (The This is also expected to result in a simplified
season has passed and COVID-19 restrictions gas is used to generate electrical energy to all management and reporting framework for the
in Tanzania have been lifted. We look forward to regions of the country.) Seplat Group.
building on this foundation and remain commit- NOC implores all those responsible for the The outcome of the transfer will not, in any-
ted to being a leading player in Tanzania’s energy closures of its facilities to the need to keep the way, result in loss of tax revenue to the Gov-
growth and transition as it seeks to deliver uni- oil sector neutral and to the need to end the ernment or an extinguishment of liabilities.
versal access in the country by 2030.” ongoing oil facilities closure immediately and Similarly, it will not diminish shareholder value
Wentworth Resources, June 18 2020 allow the resumption of oil exports to ensure the in (and returns from) Seplat as a listed company.
achievement of the minimum revenues that will Seplat Petroleum, June 18 2020

P18 www. NEWSBASE .com Week 25 24•June•2020