The Chief Executive Officer of Seplat Energy, Engr. Effiong Okon, has identified asset integrity, life extension and the elimination of operational obsolescence as critical pillars for independent oil and gas companies seeking to maximise asset value, improve investment returns and build resilient energy systems.
Okon made the remarks during Panel Session Two of the 49th Nigeria Annual International Conference and Exhibition, NAICE, organised by the Society of Petroleum Engineers, SPE, in Lagos.
The conference was themed, “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape.”
Speaking on operational excellence, the Seplat Energy CEO stressed the need for operators to maintain critical equipment at top-quartile performance levels of about 95 per cent uptime to minimise unplanned production losses and optimise efficiency.
He said operators must adopt an integrated approach that tracks hydrocarbons from the reservoir to export terminals, ensuring a comprehensive understanding of reservoir performance, well capacity, flow lines and surface facilities.
“When you do all that, you drive down unscheduled deferment. In fact, you must follow your oil and gas molecules from reservoir to export. The approach is all-encompassing—you must understand your reservoir capacity, well capacity, your flow lines and surface facilities. This means having a total understanding of the asset,” he said.
On improving operational efficiency and reducing costs, Okon advocated effective water treatment, the elimination of routine gas flaring, monetisation of every gas molecule rather than paying flare penalties, streamlining evacuation routes and strengthening logistics and outsourcing capabilities.
He also called for sustained investment in human capital development, noting that a deeper understanding of subsurface resources, wells and production facilities would enhance operational performance.
According to him, such technical expertise, backed by adequate capital mobilisation, would ultimately drive value optimisation across the industry.
Okon urged the Society of Petroleum Engineers to intensify efforts in producing more skilled engineers to bridge the industry’s skills gap and improve efficiency across Nigeria’s oil and gas value chain.
Speaking on Seplat Energy’s commitment to creating shareholder value, he said the company has consistently delivered strong returns through share price appreciation and dividend payouts while maintaining disciplined capital allocation to support future growth.
He added that Seplat has continued to distinguish itself in domestic gas development, noting that its shallow water assets contain about 12 trillion cubic feet, TCF, of gas, which the company plans to unlock, accelerate and monetise on a larger scale.
“We are indeed trailblazers when it comes to domestic gas development. We are also doing a lot of Liquefied Petroleum Gas (LPG) in the domestic market to displace biomass and contribute to reducing carbon intensity,” Okon said.
