Seplat Petroleum Development Company  Plc said it has no plans to diversify its business as it intensifies effort to boost revenue from gas production. The Managing Director/Chief Executive Officer, Seplat Petroleum Development Company Plc , Mr. Austin O Avuru, disclosed this shortly after the company’s Annual General Meeting, AGM held in Lagos, stressing that the company has made efforts in gas development strategy by the expansion of its gas processing  facility in Oben.

According to him “We will continue in our oil and natural gas production and will not diversify into other areas but will focus on maximizing hydrocarbon production and recovery from our existing assets, acquiring and farming into new opportunities in the onshore and shallow water offshore areas in Nigeria.”

The company in the 2014 financial year recorded decline in revenues as a result of the impact of the global oil price in the second half of 2014.  The global oil price has negatively

impacted on the group as it realised oil price with an achieved average price of US$97.2 billion .Revenue for 2014 was US$775 million, a decrease of 12 per cent from 2013.  The company’s Chief Executive Officer, however , reassured shareholders that it is committed to enhancing shareholders value with strategic investment in natural gas and crude oil processing and development.

According to him “The company had invested 300 million dollars in gas business, noting that the investment would boost its revenue and increase shareholders value in 2015 financial year.”

Continuing he said “In order to reduce the impact of volatility of oil prices in the future, the board is considering various possible hedging strategies that could be employed in the coming years. Gross profit for the years was US$459 million, a decrease of 16$ on the prior year 2013 which was US$549 million. This principally reflects the decline in revenue, primarily attributed to the oil price and also increased field activity together with the increase

in the rate of DD&A.  2014 was not without its challenges.  We saw headwinds to growth in the form of an abrupt decline in oil price e during the second half of the year.”

In his briefing to newsmen, he said “Management  is aware of the need to operate as efficiently as possible in the current low oil price environment whilst maximising the production and cash flows from existing assets.”  Avuru, assured shareholders that following the abrupt decline in oil prices during the second half of 2014 and continued weakness in 2015, Seplat will prioritise  the allocation of capital to production and development opportunities that offer the most robust economic returns.”