By Adedapo Adesanya
Following a tough 2022, Niger Delta Exploration and Production (NDEP) Plc, Nigeria’s first integrated indigenous energy company, witnessed a 44 per cent drop in its gas business as it recorded delivery volumes of 6.51 billion cubic feet (bcf) compared to 9.39bcf in 2021.
This was disclosed in its operational update contained in its unaudited disclosure about the company’s affairs for the year ended December 31, 2022, sent to NASD Over-the-Counter (OTC) Securities Exchange, where it trades its stocks.
The company said the drop in gas delivery was due to the associated gas production locked in to preserve company hydrocarbon reserves due to the curtailment of crude production because of heavy crude oil losses on the Trans Niger Pipeline (TNP).
The company explained that the total production for the year amounted to 1.44 million barrels (mmbbls) and 6.51bcf for oil and gas, respectively.
In its crude oil update, the company lifted 370,000 barrels of crude oil in December 2022, bringing the total volumes exported in 2022 to 395,000 barrels.
In its refinery business, refined delivery volumes rose 105.0 per cent to 152.84 million litres relative to 74.53 million litres in 2021. This was driven by debottlenecking the refinery production from upstream oil production and actively pursuing its monetisation strategies.
Also, NDEP’s capacity utilisation improved to 24.0 per cent from 13.45 per cent in 2021, underscoring further upside potential as well as additional opportunities that exist to further optimise the refinery business.
The company obtained a $120 million Field Development Facility (FDF) in March 2022. The FDF is to supplement the company’s available cash to fund the Ogbele Field Development campaign that commenced in September 2022.
Speaking on the year, the Chief Executive Officer (CEO) of NDEP, Mr Adegbite Falade, said, “The year 2022 has been very tough for the oil and gas industry in Nigeria. Notwithstanding, as a result of our strong, resilient and integrated business model, coupled with a focus on capital discipline and operating excellence, the business recorded notable improvements.
“We increased revenue and profit before tax year-on-year and achieved significant diversification of the revenue mix, underscored by very strong growth in the refinery business. Our four-well drilling programme commenced in Q4 2022 and is ongoing.
“We successfully consummated a few dollar-denominated refined product sale arrangements, which will aid our foreign exchange earnings profile beyond the upstream business.
“Additionally, our Alternative Crude Evacuation project is currently in the pilot phase, and we estimate that it will be fully operational in the very near future. Each of these projects has the potential to deliver material returns on capital and further strengthen our production and cashflow generation.”
Providing NDEP’s plan for the year, he said, “In 2023, we expect growth in our revenue and further revenue diversification across our various business segments,” he said.
Business Post reports that the company stocks closed flat at N190.00 per unit, a position it has held for more than one month.
