Niger Delta Exploration & Production Plc (NDEP) held its 23rd AGM on the 27th June 2018. At the AGM, shareholders received a detailed update on the activities of the Company for the year under review.
Dr. Layi Fatona, MD, in a presentation outlined the progress of the company by giving a snapshot of the past, today and what the company could look like tomorrow. In his vision for the future of NDEP, Dr Fatona saw the company ultimately transforming into a continental African Energy Company, through the Ogbele Central Processing Hub, the full growth of ND Refineries Ltd. As a new subsidiary company but more as the potent force for development beyond being a National Energy carrier, while keeping the values of the NDEP founding fathers.
Dr Layi Fatona also confirmed that this was his last AGM presenting as the MD, and formally introduced Mr Oloruntoba Akinmoladun to shareholders. Currently Toba is the Chief Operating Officer (COO) at NDEP. Describing him as a safe pair of hands, Dr Fatona detailed Mr Akinmoladun’s extensive industry experience and strong suitability for the role.
Impressive Crude Oil and Gas Production Operations
Despite the suspension of all capital investment activities during the year under review, NDPR was able to record improvements and modest growth in its production operations. With a 7% increase in crude oil production, a 27% increase in Gas production and a 10% increase in the production of Diesel. Additionally, in September 2017 NDPR, the milestone of 50BScf of Gas delivery to the NLNG was attained.
As part of the Company’s diversification strategy, the implementation of the Ogbele Mini Refinery Capacity Expansion Project continued. The first stage (Train II) will add a 1st tranche 5000 bbl/d additional processing capacity. This is scheduled for completion by end Q4 2018. A second tranche of a further 5000 bbl/d (Train III) will bring total refining capacity to 11,000 bbl/d. This is expected to be fully operational in 2019. The establishment of a new stand-alone subsidiary business unit – ND Refineries Ltd, has been created to take full and independent charge of NDPR refining activities.
The 2017 financial year recorded substantially, enhanced revenue of N34Bn, driven by a mixture of contributions from the sale of crude oil, diesel and natural gas. Profit before tax was N25.9Bn, attained as a result of strong technical performance, financial discipline and cost-cutting initiatives.
Shareholders approved a record dividend payment of N10 per share, representing a 67% increase on the previous year’s payment. This payment is NDEP’s 11th year of consecutive dividend payments.
Dr. ‘Layi Fatona, MD commented, ‘2017 was a year of strong performance, increased operational capacity and new milestones. Over the years, we have established a solid foundation for value creation and enhancement. Our impressive track record attests to this fact, as does our commitment to our partners in the host communities.’
‘As my last year of giving an account at the AGM, I am happy to bow out on a high note, leaving the Company better and stronger than we started.’