Seplat Petroleum’s oil and gas production experienced a slight reduction from first quarter to second quarter 2018, largely on account of shut ins caused by leakages in the Trans Forcados Pipeline.
Gross liquid output dropped from 61,150BOPD in 1Q 2018 to 52,262BOPD in the 2Q.
Gross daily Gas Production was 351MMscf/d in 1Q, declining to 337MMscf/d in 2Q 2018.
In equity terms, Seplat produced 27,306BOPD of hydrocarbon liquids and 158MMscf/d of natural gas in 1Q , but these had declined to 23,266BOPD and 152MMscf/d in the 2nd Quarter.
The reason was the disparity in the length of time that actual production took place.
Production in Q1 stood at 82% with average reconciliation losses of 7.3%; but by the end of the first half, the company reported production uptime in the period was 76% while reconciliation losses were around 8%.
There was, in an instance, two weeks of production shut in during the second quarter, whereas the highest number of days of shut in during the first quarter was four days.
Seplat has concluded plans to move into alternative evacuation facility whenever the TransForcados line is shut in, but could not execute those plans in the period under review.
Although 1H 2018 equity production averages at 25,286BOPD (Liquids) and 155MMscf/d, the company needs to keep an eye on its “working interest production guidance (before reconciliation losses) for FY 2018”, which is 24,000 to 29,000BOPD and 148 to 158MMscf/d.
This “equates to 48,000 to 55,000 BOEPD and is predicated on there being no further prolonged force majeure event”, Seplat itself says.