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Despite COVID Seplat’s ANOH Gas Processing Plant Project Progresses

 The ANOH Gas Processing Plant development at OML 53 will comprise a 300 MMscfd midstream gas processing plant in its first phase. The contractors for the civil foundation works, plant roads and drainages have mobilized to site with work progressing as planned according to the released unaudited report by Seplat Petroleum Development Company Plc .

 The report further stated that the fabrication of the gas process modules has slipped slightly due to effects of COVID-19 and a recovery schedule has been put in place to close the gap to completion in line with the original work plan. Having reviewed the construction schedule and progress on the OB3 gas pipeline, the project completion date has been revised from Q1 2021 to Q4 2021, as previously reported. The Company has assessed the effect of COVID-19 on equipment delivery and at present,  do not believe it will delay the revised first-gas date of Q4 2021.

 The company has concluded plan to collaborate with an upstream operator Shell Petroleum Development Company (SPDC) to spud the first ANOH well in November as planned, to ensure the upstream first-gas target is in alignment with the midstream project delivery schedule. The total ANOH project cost is budgeted at US$700 million and NGC and Seplat have already made equity investments of US$150 million and US$180 million respectively.

The final equity injection of a further US$90 million (including US$30 million due from Seplat) is expected in the second half of 2020. The accompanying debt funding of US$320 million was launched in April to a range of potential lenders and the response has been strong. Seplat   expects all the lenders to complete their credit committee approvals in August, with documentation to be fully signed and conditions precedent to be satisfied in Q4 2020.

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