By Abiodun Folarin
WorldStage— Independent oil and gas operators must prioritise asset integrity, life extension and the elimination of operational obsolescence to maximise asset value, improve returns on investment and build resilient energy systems, the Chief Executive Officer of Seplat Energy, Engr. Effiong Okon, has said.
Speaking during Panel Session Two at the 49th Nigeria Annual International Conference and Exhibition (NAICE) of the Society of Petroleum Engineers (SPE) in Lagos, Okon said sustaining high asset performance is critical to long-term profitability in Nigeria’s upstream sector.
The conference was themed, “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape.”
Okon said operators should maintain critical equipment at top-quartile performance levels, targeting about 95 per cent operational uptime to minimise unplanned production losses.
“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 line and surface facilities. These mean a total understanding of the asset,” he said.
According to him, improving operational efficiency also requires effective water treatment, elimination of routine gas flaring, monetisation of associated gas instead of paying flare penalties, streamlining crude evacuation routes and strengthening logistics and outsourcing capabilities.
Okon also underscored the importance of investing in human capital, saying the industry must develop the technical expertise required to better understand reservoirs, wells and production facilities.
He noted that improved technical knowledge, backed by adequate capital mobilisation, would enable operators to optimise asset value and enhance long-term performance.
The Seplat CEO urged the Society of Petroleum Engineers to continue producing skilled professionals capable of addressing the industry’s talent gap and improving operational efficiency across Nigeria’s oil and gas sector.
On Seplat Energy’s performance, Okon said the company has consistently created value for shareholders through capital appreciation and dividend payments while maintaining disciplined capital allocation to support future growth.
He added that Seplat remains a leader in domestic gas development, with about 12 trillion cubic feet (TCF) of gas resources in its shallow water portfolio that the company plans to accelerate and commercialise.
“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 in addressing carbon intensity issues,” he said.
Okon said the company’s investments in gas development and LPG expansion align with Nigeria’s energy transition objectives by increasing domestic energy supply while reducing reliance on biomass and lowering carbon emissions.
