Page 9 - AfrOil Week 12 2020

AfrOil PERFORMANCE AfrOil
 Profits, it added, had increased on the back of a rise in gas processing and tolling income and reductions in non-production costs.
On the operational side, Seplat saw its work- ing interest production drop from 49,867 bar- rels of oil equivalent per day (boepd) in 2018 to 46,498 boepd in 2019, down by 6.8% y/y. It attributed the decline to the maturation of exist- ing fields and “slippage [in] the intended pro- duction drilling programme as a result of rig mobilisation delays.”
The company also noted that its average real- ised oil price had gone down from $70.13 per barrel to $64.40 per barrel, a fall of 8.2%. Mean- while, average realised natural gas prices sank by 3.4%, dropping from $2.94 per 1,000 cubic feet ($83.25 per 1,000 cubic metres) to $2.84 per 1,000 cubic feet ($80.42 per 1,000 cubic metres).
Austin Avuru, Seplat’s CEO, indicated that he expected the company to face challenges this year. Nevertheless, he struck an optimistic note, saying: “As we enter a challenging phase for the global economy, Seplat will benefit from being a resilient company built on the solid founda- tions of prudent financial management and the careful mitigation of risk. We have previously been tested by crisis. We successfully navigated the twin challenges of the 2014/2015 oil price shock, which was immediately followed by the 16-month Trans Forcados shut-in, which
drastically reduced our liquids production. Thanks to our flexibility in managing cash flows we emerged a stronger and better-funded com- pany, ready to take advantage of new opportuni- ties. Compared to those difficult periods, today’s Seplat has more cash on its balance sheet and is even more robust and diversified.” ™
Tanzanian energy minister says domestic fuel reserves are adequate
TANZANIA
TANZANIA’S Energy Minister Medard Kale- mani said last week that the country’s fuel inventories were capable of covering domestic demand for at least two months.
Speaking during a meeting with petro- leum product sellers in Dodoma, Kalemani said he did not expect the spread of the coro- navirus (COVID-19) outbreak to affect supply conditions.
“The ministry is continuing to co-ordinate the availability of fuel even if the deadly disease persists ... [We] will continue having fuel for air- crafts [and] motor vehicles as well as fuel for all economic activities, including implementation of various strategic projects,” he was quoted as saying by Tanzania Daily News.
He went on to say that the country had ample inventories of motor fuel and would continue receiving additional supplies in the near term. “As I speak, we have 235mn litres of diesel, which can serve the country for the coming 46 days, [and] an excess of 116mn litres of petrol, which can serve the country for 48 days, and we are still receiving more fuel in all the three
ports of Dar es Salaam, Tanga and Mtwara,” he declared.
Supplies of kerosene and jet fuel are also ade- quate, the minister asserted. Tanzania’s inven- tories hold 5.5mn litres of kerosene, as well as more than 20mn litres of jet fuel, enough to cover consumption at current levels for 58 days, he said. Additional jet fuel cargoes are due to arrive in Tanzanian ports later in the week, he stated.
Tanzania has also drawn up contingency plans for ensuring the delivery of petroleum products, he added. If the country’s usual suppli- ers, such as India and the United Arab Emirates, have to suspend shipments, the government will turn to other sellers so that it can maintain stock levels, he explained.
Additionally, he said, Dar es Salaam has set up a special task force to assess fuel supply con- ditions throughout the country. Members of this team will monitor existing fuel reserves and keep track of all other fuel storage facilities with the aim of determining whether inventories can be beefed up even further, he stated.™
Seplat is a leading provider of processed gas in Nigeria (Photo: Seplat)
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