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| L-R: Roger Brown, Chief Executive Officer, Seplat Petroleum Development Company Plc; and Chikezie Nwosu, Chief Executive Officer, Waltersmith Petroman Oil Limited, at the at the signing of a Crude Purchase Agreement between both companies in Lagos recently. |
The CPA is for the supply of between 2,000 and 4,000 bopd
from existing working-interest production from the Ohaji South Field within
OML53, for Waltersmith’s new 5,000 bopd modular refinery at Ibigwe Field, in
Imo State.
Previously, Seplat’s share of Ohaji South crude was
primarily evacuated to the export Terminal via a third-party Crude Handling
Agreement with Waltersmith. This new agreement benefits Seplat by selling its
crude oil directly to Waltersmith for refining, thereby eliminating crude
losses and downtime experienced along the evacuation and export route. The
transaction would also boost the capacity of Waltersmith in providing its
products particularly to the immediate region of our operations thereby
supporting Seplat’s commitment to national energy security.
Seplat maintains its guidance of 48,000 – 52,000 boepd for
the 2020 financial year.
Roger Brown, Chief Executive of Seplat, said:“We are
delighted to sign this Crude Purchase Agreement with Waltersmith as it ensures
that Nigerian crude will be refined locally by a Nigerian refiner. The
agreement will eliminate losses we previously experienced on the export
pipeline, meaning more revenue will be booked by Seplat for the same amount of
oil produced from the field. Waltersmith’s refinery will also benefit the
Nigerian economy by creating local jobs to refine our oil.”
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