Seplat Signs Crude Purchase Agreement with Waltersmith

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By Peter Uzoho

Seplat Petroleum Development Company Plc, a Nigerian independent energy company has signed a Crude Purchase Agreement (CPA) with Waltersmith Petroman Oil Limited (Waltersmith).

A statement yesterday, explained that the CPA was for the supply of between 2,000 and 4,000 barrels of oil per day (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.

It stated that previously, Seplat’s share of Ohaji South crude used to be 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 barrels of oil equivalent per day (boepd) for the 2020 financial year,” the statement added.

Commenting on the new deal, the Chief Executive of Seplat, Roger Brown 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.”

Seplat Petroleum Development Company Plc is listed on the Premium Board of the Nigerian Stock Exchange and the Main Market of the London Stock Exchange.

The company is pursuing a Nigeria-focused growth strategy and is well positioned to participate in future asset divestments by international oil companies, farm-in opportunities, and future licensing rounds.