Seplat’s new CEO talks growth plans & half-year earnings

Seplat Petroleum, a dual-listed oil and gas company on the London Stock Exchange and the Nigerian Stock Exchange, has undergone a change in leadership with the appointment of Roger Brown as the new CEO. The company reported a 34% decline in half-year revenue, attributed to the contribution of Eland, which was acquired at the end of 2019. In an interview with CNBC Africa, Roger Brown outlined his plans for driving growth and navigating the challenging operating environment for oil companies globally, emphasizing the need for adaptation in the face of evolving market dynamics. Brown brings over 27 years of business experience to his new role, including a financial background that provides insights into managing operations in lower-margin environments. His strategic approach focuses on enhancing operational efficiencies, reducing costs, and addressing the increasing global pressure for carbon reductions. As Seplat looks to strengthen its market position in Nigeria and London, Brown highlighted the organization's significant production capacity in both oil and gas, with a strategic emphasis on gas to stabilize revenue streams. By investing in the gas business, Seplat aims to reduce dependence on oil prices and ensure sustainable growth in line with governmental initiatives to lower operating costs. One of the key elements of Seplat's growth strategy is the development of gas projects, such as the ANOH project, which is expected to significantly impact the Nigerian population by providing clean and reliable energy sources. The project's completion is set to contribute to GDP growth and support various sectors like healthcare and business development. Brown expressed optimism about the project's potential to drive domestic gas consumption and foster economic growth in Nigeria. While the COVID-19 pandemic continues to pose challenges to the global oil and gas industry, Brown emphasized the importance of adapting to the changing landscape by prioritizing safety measures for staff and communities. To navigate the current environment of low oil prices and demand, Seplat is focusing on enhancing operational efficiency through technology adoption, including artificial intelligence, to optimize processes and drive productivity. Additionally, the company is exploring opportunities in the gas value chain, such as LNG and CNG distribution, as well as considering renewable energy options to align with evolving market trends. In conclusion, Roger Brown underscored Seplat's commitment to supporting Nigeria's energy goals and addressing the energy needs of its growing population. With a forward-looking strategy that emphasizes innovation and sustainability, Seplat is poised to navigate the challenges of the energy sector and deliver value to stakeholders.