Reforms Will Boost Investment In Nigeria’s Oil Industry – Seplat CEO

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The Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, has advocated the need for regulatory reforms and other measures in Nigeria’s upstream and midstream segments of the energy sector as a strategic step towards attracting more investments into the hydrocarbon resources industry.

Brown, who made this remark at the 2023 Nigeria Oil & Gas Conference (NOG) held in Abuja, stressed that attracting the necessary funding would be dependent on regulatory reforms, fiscal terms restructuring and several other relevant policies.

Brown, who featured in a panel session with the theme ‘The Investors Perspective: Assessing the Attractiveness of Nigeria’s Energy Sector’ specifically pointed out that there was a need for success stories in order to boost the upstream and midstream investments.

He clarified: “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”, Brown added

Speaking on the things that investors are always looking out for in Nigerian companies in the quest for gas development in the country, Brown said financially strong company with robust balance sheet, low debt and credible access to international capital markets usually have a competitive edge in the drive for participation in the industry.

The industry topnotch player listed other factors as including stock market listing and associated need for governance, with preference for dual-listed companies, “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.”

Brown restated his company’s commitment to creating and sustaining value in the Nigerian upstream sector, and have continued to do via strong investment work plan, host community development, partnerships with government and aggressive human capital development.

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