₦airaland Forum

deji17:
Waoh.. what a fortune. Over 1,000 per cent returns on investment..

deji17:
Check with the likes of Ibori, Alamesiagha and the rest of the rogues whether they have something to show for the oil or not.

ednut1:
pipeline vandalization, lack of investment when they decided to sell it. Its been dragging on from buhari era, logistics issues etc

Isupaefugbemi00:
If it's gonna be beneficial to the common man, good luck. If otherwise, na dem sabi

airsaylongcome:
Not correct. It’s majority French owned. ABC doesn’t own as much shares as Austin Avuru

AmazingGenius:
Seplat Energy Plc has revealed plans to revive hundreds of idle Nigerian oil wells after completing its purchase of Exxon Mobil Corp’s onshore oil and gas assets in the West African nation.

A report by Bloomberg on Friday stated that the oil company is revitalizing idle wells and bringing them back into production. The report highlighted that only 200 of its 600 oil wells are currently active.

“Our immediate focus is rig intervention, short-term oil-generation activities, rejuvenating idle wells, and bringing them back to production. Only 200 of about 600 oil blocks are producing,” Chief Operating Officer Samson Ezugworie said in an interview.

On Thursday, Seplat announced the finalisation of the $1.28bn acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil.

This was after the Nigerian Upstream Petroleum Regulatory Commission approved Exxon’s sale of the assets to the independent energy supplier in October.

The deal took advantage of foreign companies exiting Africa’s largest oil producer.

The report added that the oil firm paid $800m of the purchase price this week, following an initial $128m paid when the deal was signed in 2022.

It also deferred the transfer of a further $257.5m to December 2025 due to certain decommissioning, abandonment, and joint venture costs, the company noted.

“It’s just a little over half of the EBITDA for the full year, so it pays back itself very quickly,” said Chief Financial Officer Eleanor Adaralegbe, referring to earnings before interest, taxes, depreciation, and amortization, which rose 25 per cent to $383m for the nine months through September from a year earlier.

Seplat, which is listed in Lagos, Nigeria, and London, views the acquisition as a good deal in terms of costs and returns.

The company also sees the deal doubling its production and said it boosts combined assets to 11 blocks in onshore and shallow water Nigeria, 48 producing oil and gas fields, five gas-processing facilities, and three export terminals.

Seplat’s goal is to lift output to more than 200,000 barrels a day, from about 71,000 barrels of oil equivalent daily now, Chief Executive Officer Roger Brown said in the same interview, without adding how quickly this would happen.

“In the portfolio, we have significant gas opportunities,” Brown also said. “There is a huge opportunity in LNG and the domestic gas space.”
Source: https://punchng.com/seplat-to-revive-400-oil-blocks/

axglide:
Interesting, the SEPLAT stock is already NGN5,700 per share. Insane returns 😁.

Just 2 years ago, specifically May 1st 2022, share price was just NGN543.

grandstar:
Not that high in real terms.

Using prevailing exchange rates, the increase is around 300% which is still quite impressive.

It is a buy because its shares would still go up once it begins to extract crude oil and sell. This is a stock to watch.

grandstar:
You'd have made more sense if you said Oando. Someone from the Tinubu family is there.

What you don't know is that Oando borrowed $800m to make a recent purchase.

During the Babangida and Abacha regimes, many of these oil blocks were gifted out for free. That is how Nigeria's richest woman, Mrs Alakija, made her stupendous wealth.

Konquest:
@ grandstar

Greetings again.

I have a contrarian view to that of yours on the BOLDED. I must emphasize here and NOW that many of those deep offshore oil blocks were NOT "gifted out for FREE." These deep offshore oil blocks went through open bidded by the Nigerian investors BECAUSE General Babangida (and then that other deeply corrupt dark goggled military dictator who took over from Ernest Sonekan) wanted Nigerians to get involved in the VERY risky deep offshore oil exploration as well.

Otunba Mike Adenuga was the FIRST EVER among all of them to strike crude oil in the deep offshore back in the early 1990s through Consolidated Oil (Conoil) and others soon followed. Some others such as Kase Lawal, the Nigerian-American oil and gas tycoon and President of CAMAC Group in Texas did NOT strike significant oil of commercial quantity in his deep offshore oil blocks. This is where he and others who did not fully succeed sank in a LOT of money daily with the hiring of expensive oil rigs and the old 2-D technologies we had back in the day for seismic studies.

Mrs. Folorunso Alakija certainly did NOT get her deep offshore oil blocks gifted for free as her company Famfa Oil ALSO formerly bidded for the oil blocks in partnership with some of her siblings from the Ogbara family who are indigenes of Ikorodu in Lagos. Mrs. Folorunso Alakija (unknown to a lot of these young ethnic bigots and creeps on NL and elsewhere online defaming her that she slept with IBB and Abacha to get the oil blocks) actually worked in a bank (she was a banker at the iconic IMB Plaza on Victoria Island) on her return from the United Kingdom. She had to eventually retire back in the 1980s to take care of her young kids who were still growing up and that's when she established the hugely famous "Supreme Stitches" in Ikeja which made bespoke wears and had elite clients. I'm sure you remember that IMB Plaza was made of bluish glass and shaped in the form of a pyramid on Victoria Island close to the Bar Beach. So, Alakija was born into the wealthy Ogbara family of Ikorodu and her father had even sent her and her sister to a boarding school in Wales before she clocked 10 years of age! Mrs Alakija indeed had corporate experience prior to delving into the risky oil and gas sector in the early 1990s. She had to involve other foreign oil partners in her quest to ensure that FAMFA Oil struck crude oil in the risky deep offshore which her team eventually did. It was really hard work to get crude oil flowing at the end of the day.

The BIGGEST winners who struck oil in the risky deep offshore back in the early 1990s are Otunba Mike Adenuga, the late High Chief Lulu Briggs of Moni Pulo from Rivers State, Mai Deribe, Folorunso Alakija's Famfa Oil, Authur Eze, Chief Tunde J. Afolabi of Amni Petroleum also made it after a long search, etc.

Like I said, Kase Lawal ran into serious headwinds after spending millions of USD on oil explorations in his deep offshore blocks, the MKO Abiola family also got into stormy waters, etc.

Last but NOT least, I know all these FACTS because I have official documents, business magazines, and newspapers in my archives from the early 1990s about those deep offshore oil blocks and I am fully aware of the open bidding process, licences granted and much more. There are some MISLEADING information online about those early Nigerian pioneers or investors in the deep offshore under the indigenization act.

grandstar:
Many thanks for this explanation.