The Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, has said that the upstream and midstream sectors of the petroleum industry are in need of critical funding if it is to develop into a world-class sector and also attract investments.
Speaking at the ongoing 2023 Nigeria Oil & Gas Conference (NOG) conference in Abuja, the Seplat CEO said that attracting funding is dependent on regulatory reforms, fiscal terms restructuring among several other policy initiatives.
Brown explained: “Nigeria needs more success stories to attract more investments to the upstream sector. We need to solve the insecurity dilemma around the country’s pipeline infrastructure, enforce clarity and separation of powers among regulatory authorities, work closer with field operators to resolve host community issues, and amend fiscal terms of PSCs/PSAs to include more incentives for asset partners.
“We also need to improve fiscal terms on gas contracts to support uptake at market reflective prices and improve efficiency and capacity of the Nigerian electricity value chain in order to aid higher uptake of domestic gas supply.”
Whilst also speaking on the things investors look out for in Nigerian companies in the quest for gas development in the country, Brown said financially strong companies with robust balance sheets, low debt, and credible access to international capital markets have an edge.
“Other factors are stock market listing and the associated need for governance, with a preference for dual-listed companies such as Seplat, where equity can be traded in liquid markets; international accountability and transparency in reporting, particularly as it relates to ESG reporting, with good commitment to sustainability; and good relationships in-country with government, regulators and local communities.”
According to Brown, the company remains committed to creating and sustaining values in the Nigerian upstream sector and has continued to do so via a strong investment work plan, host community development, partnerships with the government, and aggressive human capital development.
