NIGERIA – Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange and the London Stock Exchange, announces that its Incorporated Joint Venture, the ANOH Gas Processing Company (AGPC), has successfully raised US$260 million in debt to fund completion of its ANOH Gas Processing Plant (ANOH).
The total construction cost for the project is US$650 million, down from the originally projected cost of US$700 million. The rest of the cash will come from the AGPC venture and the project is now fully funded.
“Completing the funding of ANOH is an important milestone for AGPC. The ANOH development is one of the government’s Seven Critical Gas Development Projects [7CGDP] and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer,” said Seplat’s CEO Roger Brown.
“It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation. We are extremely proud to partner with the Nigerian Gas Co. [NGC] in this strategically important project, which will create jobs and prosperity in the Nigerian economy.”
Stanbic IBTC Bank, United Bank for Africa, Zenith Bank, FirstRand Bank (London Branch) / RMB Nigeria, The Mauritius Commercial Bank, Union Bank of Nigeria and FCMB Capital Markets made up the banking consortium. Stanbic also served as advisor.
The debt financing also provides for another $60mn accordion at the time of completion. This would be available to fund an equity balancing payment – if the company decides to take this route. Seplat had hoped to complete the funding process in 2020.
Seplat received total commitments of more than US$450 million. The company said this was a strong sign of confidence in the project.
The ANOH plant will have 300 million cubic feet (8.5 million cubic metres) per day of capacity. It will be in OML 53, in Imo State.
In October, Seplat said it expected ANOH to reach first gas in the fourth quarter of 2021. Shell Petroleum Development Co. (SPDC) is handling the upstream side of things. SPDC agreed to push back drilling of wells from November 2020 to the first quarter of 2021, to ensure upstream gas is available when the midstream facility is ready.
While the financing has been slightly delayed, Seplat still aims to achieve first gas as scheduled.
AGPC is a joint venture involving Seplat and the Nigerian Gas Co. (NGC), which is a subsidiary of Nigerian National Petroleum Corp. (NNPC).