Nigerian producer Seplat cuts 2019 oil output target
Oct 31,2019 S&P Global PlattsNigerian producer Seplat Petroleum Wednesday said it has cut back its 2019 production target to 48,000 b/d of oil equivalent from the previously stated 55,000 boe/d, after output declined for a second consecutive period this year.
Seplat's net oil production dropped by 6.2% year-on-year to 47,163 boe/d in Q3, with output down by 6% year-on-year to 48,004 boe/d in the first half of the year.
The company said production dipped "as a result of slippage to our drilling program," following the delay in securing the four rigs it had planned to deploy to bring on stream additional wells during the period.
"Full-year average working interest production guidance has consequently been revised downwards to 45,000-48,000 boe/d, from 49,000-55,000 boe/d," Seplat said.
The company's operations had been buffeted by the frequent sabotage attack on the 250,000 b/d Trans Forcados pipeline, which transports Nigeria's gasoil-rich sweet crude Forcados blend to the export terminal.
Seplat, however, said plans to use an alternative export facility, the 160,000 b/d Amukpe to Escravos, have suffered further delays.
The pipeline had previously been expected to start up by Q4 of this year, but is now scheduled to be operational during Q1 2020, Seplat said.
Seplat produces oil from five assets: OMLs 4, 38, 41, 283 and 53, all located in the Niger Delta.
The company announced October 15 it was buying fellow independent producer Eland Oil & Gas for an agreed GBP382 million ($480 million), in a deal that will push Seplat's combined oil and gas production to 64,000 boe/d.