Seplat CEO says Nigeria’s upstream sector needs to attract more investments

There is a severe need for funding in the upstream and midstream segment of the energy sector in Nigeria, and relevant success stories from the country will facilitate these investments, said Roger Brown, Chief Executive Officer, Seplat Energy Plc.

He said attracting the necessary funding will be dependent on regulatory reforms, fiscal terms restructuring and several other relevant policies.

The Seplat Energy CEO disclosed this at the 2023 Nigeria Oil & Gas Conference (NOG) held in Abuja, where he featured on a panel session themed, ‘The Investors Perspective: Assessing the Attractiveness of Nigeria’s Energy Sector.

Brown explained: “Nigeria needs more success stories to attract more investments to the upstream sector. We need to solve the insecurity dilemma around the country’s pipeline infrastructure, enforce clarity and separation of powers among regulatory authorities, work closer with field operators to resolve host community issues, and amend fiscal terms of PSCs/PSAs to include more incentives for asset partners

“We also need to improve fiscal terms on gas contracts to support uptake at market reflective prices and improve efficiency and capacity of the Nigerian electricity value chain in order to aid higher uptake of domestic gas supply.”

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Whilst also speaking on the things investors look out for in Nigerian companies in the quest for gas development in the country, Brown said financially strong companies with robust balance sheets, low debt and credible access to international capital markets have an edge.

“Other factors are stock market listing and the associated need for governance, with a preference for dual-listed companies such as Seplat, where equity can be traded in liquid markets; international accountability and transparency in reporting, particularly as it relates to ESG reporting, with good commitment to sustainability; and good relationships in-country with government, regulators and local communities.”

According to him, Seplat Energy remains commitment creating and sustaining value in the Nigerian upstream sector and has continued to do via a strong investment work plan, host community development, partnerships with the government and aggressive human capital development.