Seplat Petroleum (SEPL) has seen a tragic start to its ownership of the OML 40 onshore licence in Nigeria after seven workers died in an explosion in the area.
The accident happened on the Benin River Valve platform that is used for exporting production from the Gbetiokun field, when the workers were trying to install a ladder. Seplat said the Nigerian Petroleum Development Company (NPDC), the workers’ employer, was investigating. None of Seplat’s direct employees were involved in the accident.
OML 40 became part of its portfolio through the Eland Oil and Gas acquisition at the end of 2019.
While production has not been hit by Covid-19 - guidance has remained 47,000-57,000 barrels of oil equivalent per day - beyond some office closures and a change in shifts, the balance sheet took a major hit in the March quarter. Seplat took an impairment of $146m at the end of the period on the oil price crash, giving it a $107m loss for the quarter.
