Investor Presentaiton
GAS DELIVERS MULTIPLE CASH FLOW BENEFITS
Long-term visibility of revenues with higher drop-through of cash
ADVANTAGES OF GAS FOR GROUP CASH FLOWS
1. Gas pricing de-couples revenue from oil price volatility
2. 10-15 year off-take agreements deliver long-term revenue visibility
3. Superior earnings quality from higher cash drop-through
4.
Lower royalties paid on gas (7% vs 20% on oil)
5.
Lower tax rate applies to gas profits (30% vs 85% Petroleum
Profits Tax)
6.
VOLUMES ALREADY VISIBLE OUT TO 2035
900
800
700
600
500
400
300
200
100
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Already contracted (MMscfd)
Gross capacity (MMscfd)
Possible allocation of gas costs to oil operations, where permissible
7. Because Seplat meets its Domestic Supply Obligation it can
contract with "willing buyers" at more than the guaranteed
$2.50/MMscf DSO price
8. No reconciliation losses (unlike oil, up to 12% losses)
9.
No transportation tariffs, gas sold at wellhead prices
Existing contracted off-takers
Domestic Supply Obligation (DSO)
Volume
Duration
(MM scfd) (years)
Take
or Pay
Sapele Power Plant
50
Geregu Power Plant
80
110
Yes
Yes
Nigeria Gas Corporation (NGC)
50
10
.
• Firm*
<140
10
110
Yes
No
•
Variable
New Gas to Power Projects
.
Industrial
Industrial
•
Other**
1220
116
15
Yes
30
10
Yes
10
Yes
<150
5-15
10. Gas pipelines less prone to vandalism, assuring higher uptime
• Azura Power
28 SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | INVESTOR PRESENTATIONView entire presentation