Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, announces that its Incorporated Joint Venture (“IJV”), the ANOH Gas Processing Company (“AGPC”), has successfully raised US$260m in debt to fund completion of its ANOH Gas Processing Plant (“ANOH”).
The 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (“NGC”), a wholly owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”). Seplat and NGC have previously provided a combined US$420m in equity funding and the project is now fully funded.
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At a period loans to the oil industry are non-performing, Nigerian banks still continue to pump credit into the oil market, with the latest beneficiary being Seplat Petroleum, which recently raised $260 million from six Nigerian banks and two foreign lenders.
Seplat Petroleum raised the capital to fund its incorporated joint venture, ANOH Gas Processing Company (AGPC), which is equally owned with Nigerian Gas Company (NGC), a subsidiary of Nigerian National Petroleum Corporation (NNPC).
The list of Nigerian banks that participated in the fundraising organised by Seplat Petroleum includes RMD Nigeria Limited. Nigerian banks involved in the fundraising are Stanbic IBTC, UBA, Zenith Bank, Union Bank of Nigeria and FCMB Capital Markets Limited. Two foreign banks, Mauritius Commercial Bank Limited and FirstRand Bank Limited also took part.
Crude oil prices have risen incredibly in 2021 amidst global vaccination, lockdown easing and sustained OPEC+ production cuts.
Analysts all over the world were beginning to speak about a supercycle for oil. Brent crude was gearing towards $70. Big banks in the US like Goldman Sachs and Morgan Stanley all made predictions of a $70 – $75 oil at some point in 2021. Christyan Malek, JP Morgan’s Head of Oil and Gas stated,
“We could see oil overshoot towards, or even above, $100 a barrel.”
On Friday, 19th March 2021, Brent crude settled at $64 and WTI at $61 after a slump of about 7% last week Thursday – basically erasing all the gains made when OPEC+ sustained cuts in early March.