Seplat CEO Urges Oil Firms to Prioritise Asset Integrity to Unlock Value

Effiong Okon, Chief Executive Officer of Seplat Energy, has called on indigenous oil and gas operators in Nigeria to prioritize asset integrity, life extension, and the removal of outdated infrastructure. He stressed that these measures are crucial for maximizing asset value, enhancing operational efficiency, and achieving stronger returns on investment in the evolving energy landscape.

Speaking at the 49th Nigeria Annual International Conference and Exhibition (NAICE) in Lagos, Okon advocated for a comprehensive approach to asset management, essential for building resilient energy systems. He stated that maintaining critical equipment at top performance levels is key to reducing production losses and improving reliability, with a target of 95 percent equipment availability.

Okon explained that a thorough understanding of the entire oil and gas molecule's journey, from reservoir to export, is necessary. This includes understanding reservoir capacity, well capacity, flow lines, and surface facilities. He identified effective water treatment, elimination of routine gas flaring, monetization of associated gas, optimization of evacuation routes, and improved logistics management as vital measures to lower operating costs and boost efficiency.

The Seplat CEO also underscored the critical role of sustained investment in human capital. He argued that developing technical expertise across subsurface operations, well management, and production facilities is essential for unlocking greater value from existing assets. Improved technical knowledge, he believes, will strengthen capital raising efforts and enhance overall value optimization within the industry. Okon urged engineers to intensify efforts to produce more skilled professionals to address the industry's manpower gap and improve operational efficiency.

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When you do all that, you drive down unscheduled deferment. In fact, you must follow your oil and gas molecules from the 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.