NDEP, Nigeria’s first integrated indigenous energy company has provided this information in recent press release of its unaudited update on trading of the Company for the year ended 31 December 2022.  According to the company’s update, in March 2022, the company has commissioned front-end studies towards the further development of the Ogbele Field. This culminated in a four-well drilling campaign that began in September 2022, and is expected to be completed in Q4, 2023.

The Company has also commenced the implementation of its Alternative Crude Evacuation (ACE) project. The objective is to ensure that there are value realisation avenues beyond the traditional Trans Niger Pipeline (TNP) and the refinery business.  To operationalise the ACE, the maiden voyage for crude oil delivery to the Bonny Terminal, through the mother vessel, was completed in December 2022, and we expect steady state full operations by Q2, 2023.

The appointment of Ms. Patricia Simon-Hart to the NDEP Board as an Independent Non- Executive Director was taken effective from the 4th of November 2022. Her appointment is in continuation of the Company’s ongoing, forward-looking preparations for the new challenges of growth and transformation as the emerging leading African energy Company.

 “The year 2022 has been very tough for the oil and gas industry in Nigeria.  Notwithstanding, as a result of our strong, resilient and integrated business model, coupled with a focus on capital discipline and operating excellence, the business recorded notable improvements. We increased revenue and profit before tax year-on-year and achieved significant diversification of the revenue mix, underscored by very strong growth in the refinery business. Our four-well drilling programme commenced in Q4 2022 and is ongoing. We successfully consummated a few dollar-denominated refined product sale arrangements, which will aid our foreign exchange earnings profile beyond the upstream business. Additionally, our Alternative Crude Evacuation project is currently in the pilot phase and we estimate that it will be fully operational in the very near future. Each of these projects has the potential to deliver material returns on capital and further strengthen our production and cashflow generation, “The Chief Executive Officer of NDEP, Mr Adegbite Falade, commented.

In 2023, we expect growth in our revenue and further revenue diversification across our various business segments. “Mr. Falade added.

Operational Update

NDEP closed the year 2022 without any significant safety-related issues, recording a total of 16.14 million manhours with zero time lost due to incident (LTI). Total production for the year of 1.44mmbbls and 6.51bcf for oil and gas respectively.   

The Company lifted 370.00kbbls of crude oil in December 2022, bringing the total volumes exported in 2022 to 395.00kbbls. Gas delivery volumes of (6.51bcf); 44.0% lower than 2021 (9.39bcf).  This was due to the associated gas production locked in to preserve company hydrocarbon reserves due to the curtailment of crude production because of heavy crude oil loses on the TNP.

This was the focal point for realising value in 2022. Refined delivery volumes rose 105.0% to 152.84mmlitres relative to 74.53mmlitres in 2021. This was driven by debottlenecking the refinery production from upstream oil production and actively pursuing its monetisation strategies. 

Capacity utilisation improved to 24.0% from 13.45% in 2021; underscoring further upside potential as well as additional opportunities that exist to further optimise the refinery business.

In June 2022 the Company formally commenced its digital transformation journey through the implementation SAP S/4 Hana, and the integration of other digital tools across its entire operations.

Financial Updates

To ensure adequate capital for the 2022-2023 drilling campaign, NDEP obtained a US$120 million Field Development Facility (FDF) in March 2022.  The FDF is to supplement the Company’s available cash to fund the Ogbele Field Development campaign that commenced in September 2022.

The Company successfully closed a NGN10 billion bond issue in December 2022, part of a NGN20 billion bond series.  Relevant regulatory requirements and processes are being met and ongoing, and the proceeds from the issue will be used to fund the Ogbele Field Base upgrade, among other works.

NDEP 2023 oil hedges were for 3.5kbbls/day at US$2.20/bbl. (strike price of US$55/bbl.) which runs until August 2023.

NDEP Plc is an innovative, integrated energy company with interest in multiple oil and gas assets, and its business spanning the upstream, midstream, and downstream value chain of the oil and gas industry. The Group is committed to minimising its carbon footprint and has successfully eliminated routine gas flaring at its Ogbele Facility since 2012, when its 100MMscf/d Gas Processing Plant was commissioned.

Ogbele is NDEP’s flagship upstream asset, and it is in Rivers State. Oil production commenced in November 2005 and the field has developed into a fully integrated oil and gas producing asset, comprising a crude oil processing facility with a 20,000bbls/d capacity flow station, a 100MMcf/d capacity gas processing plant and a modular refinery, with an increased expansion to 11,000bbls/d, from 6,000bbls/d. The Plant is to enable the Company to develop and monetise its Gas Resources in the Ogbele Field. In addition, a 12’’ x 20km Gas Delivery Pipeline was constructed to deliver gas processed from the Plant to the Bonny NLNG.

In 2012, the Company, along with three other partners acquired the 45% interests of the Shell, Total and Agip in the OML 34 Joint Venture (in the Western Niger Delta) with a total flow station processing capacity of 100mbp/d. OML 34 has three gas processing plants: two in Utorogu Field (NAG-1 and NAG-2) with 360 and 150MMScf/d capacity respectively, and the third in Ughelli East Field with 90MMScf/d capacity.

The Company also acquired a 100% stake and operatorship of the Omerelu Field in 2014 from the NNPC/Chevron JV located in OML 53 about 42km North-West of Port Harcourt in Rivers State, Nigeria.