Seplat Energy Plc (SEPL) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you very much for coming. Welcome to the First Capital Markets Day of the newly renamed Seplat Energy Plc. I want to welcome you all in person, on the phone lines and on the webcast. Thank you very much for coming. I'm especially grateful that people have actually turned up in person. I'm kind of expecting that this -- hoping or dreading that this will turn out like that scene towards the end of The Big Short, where everyone's phones start going ping, ping, ping. We've already had one of the team got pinged yesterday, but luckily, she tested negative today and is able to be here. But that's great. But thank you very much. Perhaps this is a return to in-person Investor Relations, which is great. Soon we'll be racking up the air miles, I think, for the road shows and everything. But thank you for joining us. As you will have seen, we released results for the first 6 months of 2021 this morning. You'll have also seen that we announced we're being joined by a new director, Emma FitzGerald. I'm delighted to say that Emma's in the audience today. She's joining us as an independent nonexecutive director. I'm also delighted to say that we're joined by Professor Ajogwu and Mr. Rabiu who've also joined recently as directors, I want to welcome them -- welcome you all to the company as we go into the next phase of our existence. On the platform today for today's presentation, you'll recognize our regular team: Roger Brown, Chief Executive; Emeka Onwuka, Chief Financial Officer; Engineer Effiong Okon, Operations Director; and Yetunde Taiwo, Director of New Energy. We'll be doing the presentation in 2 parts with a short break halfway through, just to top-up with water. And at the end of the presentation, we'll open it up to questions first from the floor and then from the online world. So if you could hold the questions until the very end, that would be great. So to open today's presentation, we have a welcome video from the Chief Executive of the Nigerian Exchange, Temi Popoola. And perhaps if you could roll that, please.

Good afternoon, distinguished ladies and gentlemen. It gives me great pleasure to welcome you all to today's Capital Market Day celebration. This event is particularly dear to me as it comes at an interesting and pivotal time in the history of the Nigerian Exchange Limited as we just concluded our demutualization in Q1 2021, joining the ranks of demutualized exchanges in the world. Today marks another significant milestone for Seplat Petroleum Development Company Plc, as it changes its name to Seplat Energy Plc. This is reflective of the vision that it has to provide an update in their corporate strategy and the efforts by the organization towards transitioning into a full energy solutions company with the goal of being a key player in promoting and operationalizing a lower carbon fuels and renewables economy. Over the last decade, Seplat Energy Plc has remained the leading Nigerian independent energy company by becoming the first energy company to be dual-listed on both the premium board of the Nigerian Exchange Limited, and the main market of the London Stock Exchange. This dual listing was facilitated by the working arrangement between the LSE and the NGX. This arrangement enables seamless cross-border capital formation between Nigeria and London, ultimately driving deeper our markets and market capitalization for Nigerian businesses. Since raising Tier 1 capital via the IPO of $535 million in 2014, the company has returned $344 million as at the end of 2020 in dividends to investors, and it has returned a 15% share price appreciation on the Nigerian boards over the last 3 years and it continues to grow value to shareholders. Seplat Energy Plc's commitment to sustainability and its strict compliance with Corporate Governance policies and code of business conduct is exemplary. Therefore, as Seplat continues to drive forward its strategy of being a low-cost energy provider, delivering reliable, affordable and sustainable energy to the young, fast-growing population of Nigeria, the NGX strongly commenced this drive as it will significantly impact environmental, economic and social benefits that support the United Nations' sustainable development goals. The NGX will continue to support and encourage the activities of Seplat in achieving its strategic initiatives. Finally, on behalf of the Board and management of the Nigerian Exchange Limited, I commend the management team of Seplat Energy Plc for a successful Capital Market Day event, and I thank you and the distinguished audience who has struggled to grace this event in person and online.

Thanks very much. I now like to welcome Chief Executive, Roger Brown to the stage.

Thank you, and good afternoon, everyone. I hope everyone as well. And it's really great to see people in person. It's very helpful. Okay. So I'm going to just kick off and run through the first section here, which is really setting the scene for us. And then what we'll then do is we'll go through -- Emeka will speak. Next, then, Effi will take us through -- Emeka will cover all the sort of financial aspects, commercial aspects of the business. And then we'll get into Effi, and then Effi will cover all the operational aspects. And then finally with Yetunde, who will cover the midstream gas and obviously the new energy side of the business. So if we -- am I controlling it? I think I am. Okay. So Seplat Energy, obviously, operates in Nigeria. And when you look at Nigeria and you look at the opportunity set within Nigeria, it is enormous. This is Africa's largest population. It's got 200 million people, slightly over that today. It's rapidly growing. I think the average female has 6 children, and it's the seventh largest country in the world. And within the next 30 years, it's going to be the third largest country in the world, with somewhere between 400 million and 450 million people. So the population is going to double in the next 30 years. It's actually the second largest democracy, it will be. So it's a very material country that needs a lot of infrastructure, and we'll run you through some of the opportunities. Interesting factor, more children are born every day in Nigeria than children born in the whole of Europe. Every -- I think it's every 10 years, the population size of the U.K. will be added in Nigeria. So it is very rapidly growing. If you then look at its resources, it has abundant energy resources. It's got 37 billion barrels of liquids, which currently is estimated to last the next 40 years without any additions. And average day production is 1.6 million barrels a day for 2021. It's been above that in the past. But Nigeria is not -- it's known for an oil province, not an oil province. It's actually a gas province. There's more gas in Nigeria than there is of oil. So there's 203 Tcf of gas. Reserves at the minute is actually estimated to probably be 3x that. And it's current production of gas is only 8 Bcf a day, and about half of that is exported through LNG. Some part is reinjected and some parts flared. And so a very -- a fraction of that, probably 1/8, is actually utilized within the country. So there's huge potential there. And if we took all the flared gas and put it into energy, it would give us 5,000 megawatts or 5 gigawatts. Reinjected gas will be 15 gigawatts. So it's a huge amount of money -- of gas reinjected. Solar is under electrified from a solar perspective. And then you can see the potential in the hydro is 14 gigawatts. So it's a huge renewable potential in country. Sorry, I should probably cover off just some of the GDP. It's estimated at more $600 billion (sic) [ $468 billion ] , the highest GDP in Africa. And it's second -- probably second in GDP, but it's projected to be top 10 globally by 2050. So it's huge urbanization and efficiency, but it needs a huge amount of infrastructure. Then look at 2040 -- 2020 versus 2040. A lot of this source of information is from Wood Mackenzie. We commissioned a study. And you can see there the projected growth of GDP, population. So you can see growth in every aspect in there. Today, just slightly more than half of the population of Nigeria has access to energy. What we mean by that is it has access to electricity. The predominant energy source in country is biomass. So it's cutting down trees for wood for cooking. That's about 80% of the energy use in country. Of electricity there and we're talking about slightly less than -- or slightly more than half have got access to that energy. And the capacity is about 26 gigawatts. That's forecast to grow on the chart there. If you add all those boxes on the right-hand side, it gets up to about 73 gigawatts. So there's a tripling of demand over the next 20 years, and we think it's actually that's understated. I think it's much more than that. If you look at the generating capacity, 20 to 25 is diesel generation. So that's importing diesel into very small-scale generators, which are hugely inefficient, high in CO2 and lots of noise, a bit more than everything else. So what I'm trying to say here is there's huge potential of actually changing the transition of the mix of energy in country and actually saving a lot of money. And we've got some slides to deal with this as we go through the slide deck. What are the impediments? So as for the Wood Mac study, the estimated cost of that diesel is $0.52 a kilowatt hour. It's one of the most expensive, if not the most expensive, power in the world. The average on-grid cost of electricity globally is about $0.14 a kilowatt hour. So it's more than 3x, 3 to 4x that. And it's this diesel generation that needs to be displaced and dealt with. Low access to energy, we talked about. Lack of grid infrastructure, especially in rural areas. And despite the 12 almost 13 gigawatts of installed capacity, only 1/3 of that reaches customers. 80%, as we said earlier on, is for biomass. So deforestation, by displacing that wood for cooking, we then avoid dereforestation, that's a huge potential. Energy access will drive Nigeria's development. What does that mean? It's energy for employment, energy for food, energy for health care, education. Without energy access, Nigeria is not going to develop to a level it needs to. So what about our story? So where does Seplat sit within this story? Well, if you look at our production since 2012, we have all the charts every year. You can see there we have a growth rate. And if you take out 2016 and 2017 when we had pipeline shut-ins, and that's why those numbers are lower, you can then see a good projection of growth in both gas and oil. If you look in 2012, you can see our gas growth is quite substantial. So we made a decision 8, 9 years ago that we saw gas as being a big growth area for the business. and it's come true. So a lot of our volume now about 1/2 and 1/2, but not quite, but it's probably more like 2/3, 1/3 gas against -- sorry, oil against gas. And we have projections, we have confidence in our portfolio that we can grow this well into the future. So it's 4x increase in gas production, and increased total production by nearly 31,000 oil equivalent per day. We've also built a strong financial profile. We listed in 2014. We raised $535 million. We dual listed, the only company that's ever done it on the main board of the London Stock Exchange and also the Nigerian Stock Exchange, and now we are premium board listed there. We raised $535 million of equity at that point. And since then, we've returned over $400 million back to shareholders through dividends. So our dividend policy, and that's even -- if you adjust it for the downtime in 2016 to 2017, real confidence that we probably would have returned all of that money back to investors. So the message here is this is -- we're a dividend payer. We've always been a dividend payer from day 1, and it's a good way for investors to get their return. We've invested $1.9 billion of CapEx since IPO, raised $2.5 billion of debt and repaid $1.7 billion of debt. So our access to capital is proven, and we have quite a diverse range of banks and bonds. But Emeka will get through it in his section. And then the world-class Board and governance. So we started off from day 1 with the governance drive really to set a Board together. It's a big board and it's big on purpose because it needs to satisfy codes of the Nigerian code and the U.K. code. And you could see there, we -- obviously, we've got the Executive Chairman, the executive management who are here today, non-exec directors. So the -- Olivier at the right, he's Maurel et Prom; and Nathalie Delapalme was Maurel et Prom and now she's on our Board. And then we have independent nonexec directors, but not all of them because Dr. Emma FitzGerald is not on that. She's just anointed today. But we have Arunma Oteh. She was the Head of SEC when we first listed. Basil Omiyi, Charles Okeahalam, Professor Fabian Ajogwu and Bello Rabiu here, both in the audience here. Very experienced individuals from their expertise. And then Xavier Rolet, who was the ex-Chief Exec of the London Stock Exchange. Then we look at the leadership. So we have our senior leadership team, quite a number of them are represented in the room here. You've got 3 at the table there. Technical Director, Gary Thompson. And then you can see the Managing Directors here are to run our assets. So we have our Western assets, our Eastern assets, gas assets and Elcrest. And then we have, obviously, the other directors, which are represented in the room here today. So we have everyone represented in the senior leadership team. We meet monthly. We have asset management meetings every week, anyway. So I won't go into too much detail on that, but we've compiled a very strong balance of skill sets here. And then going to some of our real stakeholders. What have we contributed back in doing this? We're paying dividends. We're also, to Nigeria, since 2010, we have contributed $6.2 billion to revenue for Nigeria in our operation, $1.1 billion of royalties, taxes of almost $300 million. And NDDC and NCD, these are the local content development bodies, and we've put just slightly over $150 million. To communities, we are very much in health care and education. We've got $3 million into the communities in education, $2.4 million in health care and, obviously, for COVID-19 with relief packages. And then Nigerians, local contractors, we have very big representation from the local content -- contractors, and that's critical. That's very important for freedom to operate in country. And to actually employ Nigerians in our operations has been one of the mainstays of why we've been successful. That's a good -- we put it here. I won't go through every single one, but just our sustainable development goals. The reason why you put this up is because there's obviously a lot of focus on ESG, and that's very much part of where we're addressing the part of it. But for us, it's slightly different because a lot of the ESG statements are E-driven statements. And of course, we have those, and we'll run through what our plans are on that from the environment. But as importantly, if not more importantly, is the social development of our business. And we've been very active socially for the last 10, 11 years. We probably haven't talked about it enough, but we'll start to set those out in our plans and our targets. And what we've done here is just giving you how we are addressing each of the sustainable development goals from the UN. Will it be good health well-being, employment, et cetera. That's the mainstay of what we are doing. Social impacts. We have our programs and health care programs, you can see, I can see as a sort of a surgery and looking at cataracts mostly, et cetera. We've had eye surgeries, reading glasses, eye disease treatments, safe motherhood programs. COVID relief packages and then education. So these are the 3 sort of main areas. Education, scholarships. We have a scholarship program. We have a fantastic Pearls Quiz, which we've seen 45,000 students through and we have a teachers program. And then empowerment is one area that really we see multiplication from, which is the empowerment of entrepreneurs. So what Nigeria needs to do a lot more of is create these ecosystems from more and more businesses, and that will need energy. So we need energy to be able to do that. We have an empowerment program skills acquisition and vendor capacity development. And this is -- in the areas when you get wealth and prosperity in the areas that we operate, then we actually find that it's a much more peaceful place to work. Safety, essential safety. We have assessed safety culture. If we look at the man hours and this is specifically from our Western assets at the end of June this year with 20.5 million man hours without a fatality or a lost time incident, LTI. So safety is really at the heart of what we're trying to achieve as a company. I'm sure Effi will get into that in a bit more in his section. And then going back to our inorganic activity. We're the first Nigerian acquisition of a U.K. listed company when we bought Eland Oil & Gas at the end of 2019. We're well into embedding that into our business, and we're actually drilling quite a number of wells there this year in the exploration. So again, we'll get into that. But there's a superior exploration potential there, which I think is a real big value uplift. So Seplat Energy. So why change the name? What's it all about? And really, this is looking at the future of our business. We have designed -- our strategy is really about the transition journey within the country. If you look on the Venn diagram at the far right there, we're making a clear statement here that oil does remain crucial for Nigerian's development. To simply leave it in the ground is not going to develop the country at all. So we need to make sure that we're efficient in the conversion of that oil into dollars, and then we're efficient in how we reinvest these dollars. On the far right there is gas will drive the transition, and Nigeria's a gas province. That gas will then enable 2 things. One is moving off diesel-generated power today. At the same time, it's actually aligned that platform for renewable energy, which you can't really get big scale renewable energy on grid without a base load. We've got it in the U.K. without a base of power. We need that base load. That base is, in our view, is gas. And then renewables is just part of the energy mix. It's really the future, and we've got some slides. Yetunde will run through that in some detail. But actually, we look at -- it's predominantly solar that we're looking at. Nigeria's energy transition journey. So first of all, 5 points there. First point is energy access. It's critical. So you're not going to get social development without energy access. It is ridiculously low level of energy access in country today for a population that size. Second one is what we call a Just Transition. Transition is, has many definitions. And what we're saying is we want our transition to be right for Nigeria to address a number of the NDS elements. So we only use Nigeria's gas resource to displace this expensive electricity. And again, we'll show you a slide on that on what we think it costs annually, but it's a frighteningly high number. We want to increase the renewables. Abundance of sunlight, 6 maybe 8 hours a day, every day, in the sun. Reduce greenhouse gas emissions and meet the 2050 Paris objectives and Nigeria is a signatory to that. And obviously avoid the fifth one there, which is this firewood deforestation. We want to avoid that by developing LPG into cooking. Our energy transition priorities, 5 here. We want long-term growth by the optimal energy mix. That's critical, optimal. Be the national energy champions. We've been very successful in the first 10 years. We want the next 10 years to have even more success. We want to be the partner of choice for the government and anyone coming into Nigeria and really driving that transition. Social and economic development through our operations where we operate a number of our programs. Lower-carbon world will require different products and skills. Nigeria skill set is very, as you'd expect, hydrocarbon driven. We need to look at new skills going through for new technologies. And then significant reductions in emissions. And again, we will replace diesel generators in our operations with solar as we bring down our Scope 2 to Scope 1 emissions. Okay. So strategic framework. I won't go into too much detail around this. But basically, over pinning this framework is, one is strong governance. We have value, integrity and partnership, very critical at the bottom, and then safety. So they frame our strategic framework. Then we then come out up with a strategy, and on the left-hand side is sustainable business on 3 pillars, which is social development, environmental care and financial returns, and that being quite critical, and we've demonstrated all of those. And then transition. Deliver that transition upstream by actually reducing carbon emissions in our operations, get more efficiency in the upstream. Midstream gas, we'll talk about a bit more about this, but build that out. And then define what new energy means for us and then start to access new energy opportunities for increasing access to energy. So sustainable business. Key priorities we've got 3 here, which is obviously the social development. We've got to make a positive impact to the communities. I think for the last 60 years, the communities have seen oil extraction. And we need to put more investment into those communities so they start to see real benefits from that. Access to energy, local employment, suppliers, these communities are growing rapidly, and we need to be able to give them some jobs, et cetera. And key initiatives there is community employment, local entrepreneurship, and this is really building ecosystem. So creating business parks, industrial zones where businesses can operate, entrepreneurs can function, It's very difficult to function when you haven't got energy, you haven't got power, you can't put the light on, you can't get the air conditioning. It's really difficult. And it really is holding back Nigeria. There's a high intelligence level and education. But without reliable, affordable energy, you're not going to really develop it. So that's where we see ourselves providing that energy in the long term, access to energy in local communities. Focus on environmental -- second pillar, environmental care and reporting. And again, this is we coming out with ESG targets. We'll report them in the 2021 annual report, so you'll see those in Q1 next year. So there'll be Scope 1 and 2 carbon emissions. And we're looking at scope 3 at the minute and see what we want to report around that. And then whatever framework that -- it looks like TCFD is the sensible one for us to follow. But actually reporting, we're doing data gathering at the minute, but reporting and selling those targets. And then maximize returns for all stakeholders. And that really is a fair split of the business in terms of our achievements across whether it be communities, whether it be government, whether it be employees or today also investors, to support us. So -- and to be a partner of choice. I think we have a very unique opportunity here, being an indigenous company, well run, very high level of governance, to really be that kind of home for investment where investors can come in and trust that, that investment will make a return and will be well looked after. And so looking at inward investment from all around the world and to allow Nigerians to develop these skills. And then deliver transition. So again, we'll run through this a bit more. But in our Upstream business, this is -- the key initiatives are focused on those. We've got to monetize the reserve. We've got to be lowest quartile in the global extraction of oil. We've got to look at export routes that are reliable, so we don't get downtime and losses. Bringing in some technology. I think the technology into Nigeria hasn't been as advanced as it has been in other parts of the world, in U.S., U.K., et cetera. There's a lot of technology we can bring in, smart well techniques, and I think we can really drive down the cost of our operations, decarbonizing all our field operations. Flares Out program, and Effi will run through that in his section. And clearly, setting realistic time lines for project delivery and delivering on them. On the midstream side, to date, we took a view in 2012 to invest in it. It's been a highly successful, probably the second biggest gas processor in country and when ANOH comes in stream middle of next year, we will be the biggest gas processor in country. Actually next, of course, next to government. And really, this gas value chain and growth is really going to be the very key transition tool. So looking at that is look at high utilization of our gas plants, deliver ANOH, which is the new gas plant in the East, develop new gas markets. And really, that's looking at going down the value chain a bit to reselling bulk. We actually should be looking to sell smaller parcel sizes for higher gas prices, and LPG for cooking. And CNG, it's a huge -- we're -- CNG for automobiles, but also CNG for other usage. It's pretty easy to put a compressor on a gas plant, and encapsulate CNG. And then new energy is really moving down that value chain. So we call it going from molecule into electron, going into gas to power. And then electricity really be in that bridge of where Nigeria goes into renewable energy. So solar by itself has a cyclical nature to it, it's 6 or 8 hours a day. So you really need a combination. When you look at renewable energy, you need a combination of baseload, and gas is an excellent base load battery technology well as well. So that new energy business we'll talk you through in a second. Okay. So I don't know how we're doing for time, but Carl says we're on track. So social development, driving that. These aren't just words on the paper. This is something we've done for 10, 11 years. I don't think we've talked about it enough, and we need to talk more about it. So it's this positive impact on communities. Local employment, we have a rule that provided they have the capability to do it, we will use local contractors. We have capacity building days where we train. We have workshops, so we have a rule within the business, let's start to generate a lot of employment in our areas. And we have the cases of you get to start where the contractor is doing catering in the first year and by year 5, he's built your pipeline. And it's that sort of generation of employment which has been hugely lacking in Nigeria because I think all of the assets were tightly held by a couple of companies, and I don't think it was as wide as it could be in terms of growth of jobs, et cetera. So here's our partnership with the community. We have this thing called a global Memorandum of Understanding. It sets out the rules of how we engage. It has, of course, CSR embedded in it, but it's much more than that. It's actually employing them, it's treating hosts as partners. It's what we call freedom to operate. It's not some -- it's not a group of people that we contain. It's actually people that we bring into our operations and then they help us grow our business. And so we have these. Every 5 years, we renegotiate them. And the cover, I guess, looking at it beyond employment, covers sort of 4 areas there. And you can see you've got social investment. And again, this is aligning with the SDGs. Also the Africa Union 2063 we're aligning with in terms of health, education, economic procurement, environmental care, education. I won't go into too much because I've already covered a lot of this thing. Local employment, again, have measured on that, but on purpose, it's very critical. Local entrepreneurs is really helping and kind of shaping the direction of skill sets. And then statutory interventionist agencies funding, whether we do the Niger Delta Development Commission, the NCD levy, which is then -- does a lot of local content, or Tertiary Education Tax and we have a number of teacher programs. So this is live. It's been here from day 1. We gave you the stats of what we've spent in the communities, and we will continue if we get a new acquisition, new asset onshore, even shallow water offshore or anywhere else. We come in with this GMOU, we negotiate and we get to landing, and then at least the communities know what the rules are. And then looking at environmental care and reporting. So we have 2 ratings. We got the MSCI rating and Sustainalytics risk rating. We -- MSCI, you can see we've just been upgraded. So at the end of March this year, we went from BB to BBB. And then on Sustainalytics, again, we have a very clear rating there. We're 31 of the 171 in the E&P companies. And I think confidently, by having more measurement publicly and people can now start to see in their policies, et cetera, we're confident we can actually improve these ratings quite significantly as a business. Goal. Minimize our impact on local and global environment, drive improvements where possible, commit to global standards and transparently report our progress. We've been doing that since day 1. We're the only dual-listed company. We're on the main board, the only Nigerian company on main board London, and we're obviously premium board listed in Nigeria. Transparency is key to us. So in terms of baseline in ESG, we're -- we have a team on board now. We're setting that baseline for the ESG performance. We're going to come out with targets as we said in the 2021 annual report. And that's really going to be heavily focused on 1 and 2 emission reduction targets, et cetera. And then we'll report going forward. We're going to adopt integrated reporting, and we're going to embed this much more within the business. And I will be back before the end of the slide deck, but now, I'm going to hand this across to Emeka. Thank you.

Good afternoon, and we've had all the opportunities and the objectives of Seplat in terms of mining the opportunity in oil and gas in the country. The next thing is what does it mean in terms of return to our stakeholders. As the goal, I go beyond just equity providers. We'll manage our finances in a manner, our focus mainly on prudent financial management and other priorities that we invest for the future, we pay our taxes. We also -- apart from paying our taxes, our royalties, service our debt and then return dividend to shareholders. And Roger talked a bit about that in terms of how much we've returned our dividend since the IPO. As a company, we see ourselves having a stewardship responsibility in terms of managing the natural resources of Nigeria. And the discipline we bring to these have seen sustainable operations over the years, even in very difficult times. Roger talked about the [ fire ] of the company to get better on gas over the years. And that's [ that ] I've taken on gas side have led us to be a major processor of gas. Currently, we have almost 30% of the gas supply to the united companies in the country. If you look at level of production shown in this slide, part of the left side of that slide, you can see how our gas production has increased over the years. We just talked about 1/3 of that production today being gas and about 2/3 being oil. For [ other products ] as well, the income from gas in terms of revenue is about 20/80. And over the years, on the average, you can see how it's growing. For a lot of reasons beyond the fact that this is a natural hedge for us because of the volatility in crude oil prices, the stability in gas prices, but these are used for the local market. Also, the fact that the gas prices locally are indexed in dollar but received in naira also help automatic foreign currency risk on our balance sheet. So completely, we [ risk about ] 80% of our revenue in foreign currency and just 20% in naira, and that's helped us to manage our balance sheet very, very tightly. Our targets also have been to manage our cash in a way that we always have cash on our balance sheet. In the past 4 years, we have a minimum of $200 million on our balance sheet. As at end of June, results which are announced today, we're about $209 million on our balance sheet. And if you look at how the net debt have been trending downwards over the years as well. Our operation is very nimble and that allowed a flexibility in terms of CapEx spend. When we said volatility in terms of crude prices, [ I will have enough for ] CapEx, we're in a position to scale down our CapEx spend for each of the years. And that has helped us. I'm going to talk about the way we manage our cash generation, which sits on 3 legs: revenue assurance, cost reduction and flexible capital allocation. On revenue assurance, focus on asset, integrity and safety. Roger talked a lot about the community relationship that we have. When you have FTO, freedom to operate, it doesn't come very casually. Because the communities have to welcome you in their community, and allow you to operate safely, which is a challenge that probably [ the outsiders have had ] over the year. But we've been a leading indigenous company, and it's our major focus to make sure we're settled within the community because that assures our revenue to ensure we continue to operate in those areas. And of course, if a question which is very important to us as well because those pipelines as well suffer a lot of [ loss ] on new pipelines, but we listen to the communities, and the new pipeline are sustained to continue to evacuate our products. We talked about 80% of our revenue coming from crude, and that's coming from -- that's in foreign currency. And that also helps us to ensure that we'll continue. We need to have good resources to fund our operations. In terms of cost reduction, we're a low cost provider. Today, we're looking at about OpEx of about $9 per barrel. Breakeven is about $15.5, and that allows us to continue to operate even a very low oil prices. In terms of flexible capital allocation, I talked a bit about that in terms of we've been in a position to adjust our CapEx depending on how -- what kind of cash flow that we're seeing as a company. On capital allocation priorities, it's to continue to focus on low-risk opportunities to generate very good revenue for the business. We talk about the gas investment we're making and also in terms of gas processing, Roger talked about the open investment made over the years. The ANOH that's going to come on stream and the separate gas plant that we also invested in. We're going to comment by first quarter 2020. But I think Effi will talk more about that. We'll continue to drill more and more gas wells to feed the demand that we have for gas in the country and focus on developing a low-risk field, particularly for Nigerian asset that we'll have on our Western asset. In terms of return to investors, we have a paid dividend. I will talk about the quarterly dividend we paid over the year, but also consistent in making a dividend payment. Currently, we just moved to quarterly dividend payment policy. So we intend to continue to maintain dividend payouts. And when we didn't have stable flow back from the gas business, we may consider a progressive dividend policy. We had significant retained earnings, about $1.1 billion as at end of June to continue to fund the dividend payment irrespective of the fluctuation we have in business, particularly the oil and gas [ complicated ] kind of opportunity from time to time. Our balance sheet is very, very, very strong. I won't talk about the results for this year -- for this half year. I'll speak more as to where we are currently. More likely, leverage within acceptable limits. We have a leverage of -- in terms of net debt to EBITDA on that 2%. As a matter of fact, about 1.7% at the end of June. This past half year, we refinanced our bond that we issued previously at about 9.25% for refund and 7.75% by [ 350 ] million of bond that we issued at the end of first quarter this year. And we used that to repay our RCF completely. On our Eland assets, we also funded Eland by restructuring -- by refinancing the RBL and also getting a secondary trader facility to support the operations of Elan. Currently, we enjoy very high credibility with our financial partners. I believe that over the years, with the quality of governance management and capacity in terms of operation of the business, we've kept our promises in terms of making sure we meet our obligation, financial obligations, and that has, over the years, given us the credibility to continue to raise capital that we need from time to time. We are looking at opportunities, value-creating M&A in our space. The IOCs are migrating out of onshore shallow water into deepwater, and that creates opportunity for acquisition. We'll look at those opportunities as they unfold, but we'll be guided by our interest in gas drilling as we continue to buy assets or give out more gas to dominate the gas space. We intend, over the years, to continue. You will see from material representation to extend our investment along the gas value chain to be able to take advantage of other opportunities that we have in that space. I will say we have significant firepower, financial firepower today to drive our operations and to take advantage of opportunistic M&As that may come to play. Today, we have $299 million cash on our balance sheet. RCF of about $350 million are largely -- are not drawn at all. And so we have about $650 million of liquidity available to us. And our bond is trading very well. We're pointing to tap into the bond. And we also have on the RCF in case we need to get money very quickly from the market. I talked about our credibility and our track record as a company in terms of financing partners. Seeing the IPO brought about $2.4 billion, and we paid out $1.7 billion, about 69% of what we borrowed over this period. I talked about our net debt position. This morning, we released our results for half year June 2021. We'll continue to show very strong performance. Our production was within guidance at about 50,000 barrels per day of oil equivalent. And on the back of that, and the current upswing in the price of crude, our revenue went up by -- revenue of this half year by 32%. I talked about our cost of production at $9.7, net debt of $456 million. The operating profit of about $100 million and our pre-tax profit was $62 million. And our PBT was about [ $6 million ] for this quarter. The business run well this year, and we believe that we'll meet our expectation in terms of the guidance and the -- if you will talk more about that. And we believe that the price of crude will be sustained largely for this period. Thank you. I think we'll take a break at this time. I'll hand you over to Carl. Thank you.

Thank you. We're actually quite a way ahead of time. Do you want to take a break? Or should we just carry on -- we scheduled a 10-minute break in, but if...

I think it's worth to have a break.

Okay. So let's take a break now until 4:00. We're a little bit ahead of time, but it just gives you 10 minutes to have a glass water or hopefully a cup of tea. So reconvene at 4:00. Thank you. [Break]

Okay. Thanks very much, everyone. So welcome back to the second half presentation. In this half, we'll be talking about the upstream business, the midstream gas business. and our plans for new energy and then there's plenty of time for questions afterwards. So I will now hand over to Effiong to talk about the Upstream business.

All right. Good afternoon, everyone, again. I think it's nice seeing everyone. Since the -- is it 2019, we had the last -- 2018, 2019. And like Roger mentioned, I hope you're all staying safe. So what I'm going to do in this session is run through the upstream part of the story. Whether we like it or not, the upstream has been really the core, the foundation on which the legacy has been established for Seplat. And often is still going to be a material part of our future in as much as you already talked about the opportunity, you talked about the potential in the country and then also the very strong legacy we have been able to establish over the last, I think, 10 or 11 years now. And then Emeka talked about lots of cash -- we're given -- we've given back a lot of cash to all our investors and all our stakeholders. But underpinning that very strong extraordinary performance is just the upstream business, right? So -- but before I start, I want to say I would extremely, extremely grateful to all of you in this room, investors, communities, we always like to put on the major resource holder face to the government of Nigeria. It's always a privileged place to be when you have all these assets. It doesn't come easy. So the government remains a major resource holder. We really want to say we're really delighted and really blessed by the rich portfolio we have and we've also added value over the years. And so and that's the right to -- based on our performance and also big thanks to all our communities, giving us the right to operate. Roger talked about the LTO, license to operate or freedom to operate. Without peace in the community, there's no way we can operate these assets. Very, very challenging part of the portfolio. And also to our very strong, wonderful Board, management team and the bigger Seplat organization. So I just want to open with that really deep sense of appreciation. Thank you. So what I will do, I'll talk about 4, 5 key items around the upstream part, but the goal for us in upstream business, we all -- we don't want all to bring the ground. If you look at all the forecasts, there's a concern around it's better have the oil on surface to lay down in the ground. So on the upstream side, our goal really is to develop our upstream business really, really aggressively to accelerate monetization of the portfolio by selectively expanding our asset base, optimizing that balance within gas and oil. Roger talked about gas remaining in the transition in fuel. And also driving production, optimizing costs, driving down costs through very strong operational excellence and also doing this in a very responsible way, cleaner away, reducing our carbon intensity. We all know the whole story business around decarbonization. And then driving our revenue up as well. And also giving the market that assurance, we have done it. And I strongly believe looking forward the legacy we've established is propelling us to the future. And also diversifying route to the market, which has been one of the biggest operational challenge we faced as a company with all the issues around the export route. But I'll show what we're doing about that major risk. So Niger Delta is one of the most prolific Delta basin in the world. I worked in the U.S., in Europe and the Middle East. You look at a few big basins like this. Brunei, Niger Delta, part of New Orleans. It's also a [ Delta exciting ]. The Nigerian portfolio ranked, really, top quartile in terms of very, very high-quality reservoir rock, light oil, very high permeability. And that's why the [ chances people ] say, below ground, Nigeria is blessed, massive opportunity. And we know all the aboveground issues. So on that basis, Seplat has got a really robust portfolio. If we go through the slides, key assets. We started from the Western asset, which is basically OML 4, 38, 41 in the West 10, 11 years ago. And then we then moved on to the Eastern asset. That's where we're building the ANOH plant. Yetunde will talk about the ANOH project, which brings in material gas to the market and makes us the leading domestic gas player in the country. It will also come with condensate as well, very rich gas. And then from 2015, 2016, our latest baby, Ubima Elcrest, which is the southern part of that picture. You're seeing a very close -- sorry, the -- what you call the North, pardon my geography, northwest part of the picture. And that's where you have the [ chunk ] of Ubima, it's the acquisition we made in 2019. So it's a very rich portfolio, in terms it's quite diverse. People think our portfolio is single Niger Delta, not really. You've got a mix of oil and gas. We've got multiple fields, different production facilities, and also multiple export routes across the portfolio. So the first big one is our production to Forcados Terminal, which is where we started in 2010 post-acquisition from Shell. That terminal is operated by Shell. And then we also worked on alternative route to the Warri Refinery, which was very helpful during the 2016/'17 sabotage on the Shell export route pipeline. And we're working on the AEP, the Amukpe-Escravos Pipeline. I will talk a bit about it. I know there's quite a lot of questions around that project. But that was one main part of how we then diversify export of crude production from the Western asset. We -- that line should be on production before the end of this quarter. We're looking at September, but I'll talk a bit more about it much later. And then OML 40. We're also looking at -- sorry, before that, we're also working on getting the potential option to build an export route, the [ goes ] offshore shallow water to an FSO. I will talk about that in my subsequent slide. And finally, OML 40 comes through from [indiscernible] production coming to the Trans Escravos Pipeline to the Forcados Terminal. So that's basically what the portfolio looks like, very rich. And then if you look at the left-hand side of the slide, that shows a 5-year outlay in terms of capital investment program where we'll be drilling lots of wells going forward, as part of that, accelerating the development and the depletion of these reservoirs so we can monetize these assets as quick as possible. And then in that 5-year plan, we're looking at primary number of wells split per asset. So the western asset takes the bulk of that portfolio, and then they move on to the OML 40/Ubima. Opuama and Gbetiokun we'll also do a lot of well -- new well drilling, and I already talked about Sibiri. I'll come back to that later. If Sibiri's successful, it's a near-field exploration opportunity. If it's successful, we'll also hook it up to the existing flow station at Opuama. So it's not -- we don't have to waste time to build a new facility. It's a straight hook-up, and you start monetizing that production within the first 1 to 2 years. Then next is OML 53, Ohaji South and also Jisike where we'll also do some new well drilling, and also, the NOLs are also part of that block and then [ OPL 283 ]. So in summary, today, we're at roughly around 33,000 barrels of oil out of our oil portfolio. In the next 5 years, we will drill those wells to address decline in production, at the same time, bring incremental growth above the current plan to production, which is same, and that's underpinned by the very rich reserves portfolio of just under 2 -- 241 million barrels. Okay. So that's a bit about the oil story. I'll flip on down to the gas. So gas has also been a big part of our portfolio. So we sit on a very rich gas reserves base, roughly about 1.5 Tcf of gas. In terms of -- on the right-hand slide, in terms of that portfolio distribution, I think what that slide shows is the 3 main core centers for our gas processing, starting from Oben somewhere. I wish I could use -- I can't use the pointer here. But just at the center of the -- on the northern part of that slide, you see that circled in colors Oben. Oben, we've got 5 new trains built by Seplat post the acquisition from Shell, expanded. There were 2 old trains, and we'll build 5 new trains, and each train is about 75 million of gas per day. The Shell old trains are 45 million standard cubic feet of gas per day. So collectively, 5 times 75 plus 45 times 2 is what we'll have in Oben now. So we can bring in gas from anywhere processed in Oben. The next one is Sapele. We're building -- we're upgrading the Sapele gas plant from -- to 85 million scf of gas per day. That project is on stream hopefully, sometime around early 2023 is what we're looking at. Then on the lower part is ANOH. Yetunde will cover ANOH. ANOH is a pretty much unitized asset with Shell and ourselves, and the NGC is also in that mix under the AGPC SPV, and that asset should come on production next year. So in total then, if you look at our gas business, I think was also earlier mentioned by Emeka as well. We're moving towards roughly almost 800 million scf of processing capacity next year gross, and that takes us close to our ambition to be 1 bcf of gas processing capacity company per day. So overall, I think the other strategy part of this gas reserve is actually around major demand centers, which means that with those major demand centers, you can usually hook up any other gas fuel to those process trains we've already -- which we've built already in Oben and then the new ones coming on Sapele and also ANOH next year. So OML53 really is one of the largest greenfield gas and condensate development in Niger Delta, and I'm sure we talked a lot about that last -- during our last Capital Market Day. The investment we're making there, and how this will be powering Nigeria's economic transformation going forward as far as gas is concerned. So that's the gas story. So we're proud to be part of that past and also the future as we go through the energy transition. In terms of investment, I think Emeka talked nicely around how we've been able to -- the flexibility we have to principally scale back, scale down and scale up. So last year, if you all recall, we had plan to spend quite a massive CapEx program until COVID struck sometime in March, and we had to scale down in terms of capital investment. And then looking forward now, we have built a very strong program for this year based on that, factoring the potential oil price scenario in this year. And then on the 5-year business plan, we're looking at somewhere just under $1 billion to $1.2 billion going forward, covering wells to bring in new production, also facilities. So we are building -- apart from ANOH, you all know about our Sapele gas plant. We're also building a new liquid process facility in Amukpe, so we can process water in-situ and then inject water, and that way we don't have to spend all the money in Forcados to process water. We're trying to get to a world where we take off our water in-situ dehydration, and only dry crude gets to terminal. That has a massive saving for us from an OpEx point of view. So part of what you see in terms of our forecast in the next 5 years is to build out a liquid treatment facility in Amukpe. Sapele also, we'll put a brand-new compression station for gas lifting to support the Sapele development and also a new water treatment facility as well. And finally, our decarbonization program is also heavily underpinned by a part of the CapEx investment we're looking at, and I will talk a bit about that shortly. So overall, a very robust 5-year outlook to drive a lot of the financial aspiration and ambition we have as a company. So solid portfolio, solid investments. And so I then move on to -- if you look at then -- that's all around discovered portfolio, which is my earlier point around we want to drive accelerating, monetizing these assets with a very disciplined approach underpinned by clear strategy around capital allocation to gas, to oil, and the mix. And then we'll keep driving operational excellence. Ambition is to become top quartile in all areas of operational excellence that will then put us world-class where you're looking at how we operate the asset, how we deliver new projects and also how we drill new wells. We did a lot of benchmarking. We've had actually a lot of [ rational ] benchmark, also Mackenzie benchmark. We know clearly where we stand today as an organization in terms of those key operational metrics, and we've got a very clear road map on how to close that gap to potential. In some areas, we're actually top quartile, but the areas where we're not top quartile, and it's how we close that gap to potential. For the new projects, we also joined new 2C contingent resources to 2P, which is part of -- today, we sit on almost 500 million barrels of oil equivalent, 2P and 2C. So part of that investment we'll move the 2C to 2P in that bucket. Then you go to the next bucket -- sorry, 600 million barrels of oil. That covers 2C and 2P as the 500 is [ exhausted ] to 2P. So that differential. Part of that investment is actually mature a lot of the 2C to 2P. We then have a big exploration portfolio. It's actually -- people talk about Nigeria as -- I just showed a slide of 37 million barrels of oil and 200 Tcf of gas, right? But the undiscovered portfolio in Nigeria is actually more than the discovered portfolio, which people don't really talk a lot about. And we do have a share of that undiscovered portfolio, and what that shows is if you look at all our assets, from western assets to the eastern assets to Eland, there is material prospectivity portfolio having, therefore, leads some prospects. So we will be doing quite a number of exploration drilling going forward. I will start by end of this year with the Sibiri exploration well that -- to test that prospect on the right most part of the table, which is about some 4 million barrels and then risk to about 30. That's a major material play for us in the history of Seplat. But it all shows you also on the western asset and on eastern asset, we do have material prospects. And, albeit, if these prospects are successful, we don't have to invest a lot on CapEx, just hook them up to Oben or Amukpe or we'll have all the processing. This is a very, very attractive, very rich and near-field exploration potential, which will see us bidding to put up our money now to open up that space, to open up the play, look at the deeper play as well in that process. So huge, huge, huge opportunity. We'll go at the pace in which you -- so that we can still get all the cash out on time. So I want to talk about export routes. I did mention it earlier on. This has been one of the biggest challenge we faced historically over the years. But at the same time, if you look at the history of the company in the past 10 years, we have been able to work up options, and I'll start with the western asset, which is where, I would say, 70% to 80% of our cash comes out of the western asset. Historically, we always exported through the showtime in our Forcados through that TFP line. TFP line, we've talked about -- a lot about the uptime of that line, the integrity of the line. There's been, first, a lot of sabotage, a lot of challenges and also went into the AEP project. So AEP project, the line has been laid, just to give everyone an assurance. That line was fully laid, hydro tested, dewatered and -- in 2019. And then what was remaining was there was just the scope around the Chevron terminal. And then COVID struck early last year, and then Chevron, -- of course, every company hunkered down, stopping their project activities. So AEP was also impacted by COVID-19. But the good news, we've been back to the Chevron terminal. We went back there in Q1. We started drilling the remaining scope. So all the scope within the Chevron terminal, IPC pipe large installation for our gas system. A lot of the mechanical work is pretty much done. We're going to integration now and working all that interface with Chevron. And our plan is by -- in September, we will introduce hydrocarbon into that line. So our first offtake will then happen sometime in Q4. So I'll say good news, and we will pop champagne this year [Foreign Language]. On the Warri refinery, that's something we also did put out as a potential option if we have a major outage on the export route. I talked about Escravos terminal. And then on the Brass terminal also for the eastern asset. Jisike flows through Brass and also the OPL 283 throughout that Newton Pillar asset investment well. And that's actually quite a reliable line if you look at uptime, and loss is quite low. And then Bonny terminal as well will flow Ohaji South to and also the OML 55 crude that's Belema. And then there's a whole lot of refinery coming up now in the country. In the east, we do have the Waltersmith Refinery, which sits very -- just next to Ohaji South, and we will put some crude through the refineries as part of our diversification strategy. And also, OPAC is also building in a refinery, which is also very close to OPL 283. That's the Newton Pillar asset. So in summary, you can see how we're working the derisking the export route. We'll continue to look at options, working this collaboratively with other operators, other opportunities, a lot of looking out for synergies as well as [indiscernible] and backing on these sales. So -- and that will kind of drive uptime across our assets. So that's the Amukpe-Escravos pipeline, which I earlier talked about, just talk a bit more around what's happening on this space. So if you look at Forcados, TFP line has suffered downtime of roughly about 18% in 2021 And historically, it has always been somewhere between 20%, 25%, and I think last year, it went down with a lot of improvement around the security surveillance. The line is not operated by Seplat. It's operated by a company called Heritage Oil and Gas. And then you also have losses on that line because of the sabotage. Now the beauty about AEP is that it's buried to about 15 meters depth, so it's very hard to access the pipeline, the very real pipeline installed in Nigeria at 15 meters depth. So this is going to be one of the very few new ways with HDD technology to bury the pipeline, so it's then difficult to sabotage access. And that's why we're very confident around when that line comes on stream, we should be looking at the uptime for the western assets in the 90% neighborhood as against 80% or 70% or so on the TFP. So the other good thing about the AEP is that it gives us access to the Chevron terminal and also to the NPSC terminal, which is just next to the Chevron terminal. At the same time, we're going to tee off before the Escravos terminal to go to Otumara and then to Forcados. So that gives us almost like 3 potential options around the AEP, building a lot more flexibility and robustness around how we drive that top-quartile availability for the asset. Our assets normally run at about 95% availability, 5% scheduled downtime on the schedule. It probably also has been with the top-party interferes. That's why we see that 21%. Otherwise, we run those assets at really, really top-quartile benchmark, above 90%, if we take out all the export route issues. So hopefully, with that cluster with Gbetiokun Opuama, with a new line that's going to be laid connecting Gbetiokun to the Adagbassa pipeline to the TEP coming into Escravos and then to Forcados. We have a very robust set of export route now to support that whole OML40, OML4, 38 and then 41. And hopefully, when we report end-of-year performance, we'll see how that -- this whole project will have transformed uptime factor for the western asset. So it's a big one for us. I know it's always one of the areas we get lots of questions on. We're almost there, almost there. I then move on to the next part of our operational excellence. So driving production up and then reducing cost, which is quite key to be competitive. In the western asset, I talked about how we're doing around taking our water in-situ. In the past, we said about 30,000 barrels of water to Forcados. You can then do how much that then cost us, $30 million, $40 million per annum. With the progress we've made around the liquid treatment facility, that saving has been banked now because our system is now working, and we're taking our water in-situ and injecting that water. We also have a new project that will even further enhance the performance of the LTF and also do a lot of reliability work, bringing in new plants, life extension. You have to realize that these assets are quite old. Some of these assets are 40, 50, 60 years old from Shell. So a lot of what we do since we acquire the asset is to put in a lot of money in life extension of the asset, asset integrity assessment and getting those assets back so they can still run for another foreseeable future. So that's really western asset. Then on the eastern asset, we kicked our production in Ohaji South with a leased facility, 15,000 barrels of oil per day. And we are also doing some appraisal around Owu. The whole idea is we would like, going forward, to build -- install a new CPF, which will process about double the capacity we have now as part of that, monetizing that asset deals, as shared earlier on, and hopefully, build out production in the next couple of years. And then on the Jisike, which is a very old asset, just next to [indiscernible], we are doing a lot of debottlenecking, installing compression to help with the vertical lift performance but the wells they're also quite old. And Eland, the acquisition, we're doing Gbetiokun 3 wells, very big wells, 3,500 barrels per day. The Gbetiokun 3 fresh wells come on production between August and December. At the back end of that campaign, we'll then do Sibiri well. The Adagbassa pipeline will help us take out the cost around the budging cost now which we do budging from Gbetiokun to BRVS manifold at a major cost-reduction activity around the Eland assets and the same with water as well, trying to drive down. So hopefully, if you put all that together, forward-looking, as part of that 5-year plan, we will be taking down costs significantly, unit operating cost from the asset. I think we sometimes get a bit conservative, right? We don't talk a lot about some of the good stuff, like -- or I just talked about during the comments, but there's a whole [ lower ] doing asset as well, just to give you that assurance that we're not just driving investment in production, but we're looking at how we can be very competitive. Listen, our common enemy are the Arabs and the Russians. Maybe if we can get our production cost down to under $4, $5 per barrel. So in terms of technology, I think it was also earlier mentioned, yes, we've been slow with technology deployment. But we did a lot now actively, process in place as a clear framework around technology, screening, what is in the R&D space or it's off the shelf. We have deployed quite a lot of technology in the past couple of years. We have -- for example, now you don't -- operators don't have to go to the wellhead on their screen. They can look at well performance and intervene in terms of surveillance. And then we've actually modeled our assets, so we'll get better predictive capability around the future performance of the asset. We can monitor and predict the performance of every oil and gas molecule from reservoir to export. And that's what is Seplat virtual asset management technology is all about. On the right-hand side, you see a whole range of technology, I'm not going to go through all of that, whether it's by remote surveillance. We're doing Big Data analytics, predictive analytics, where you can look at compressors, temperature, vibration and pressure data and be able to predict when you have a failure, so you can intervene before the compressor fails, and that you don't have downtime from the machine. And then we were pushing all those equipment towards top-quartile performance. So top quartile is somewhere between 90%, 95%. So running -- so that drives production automation, internal [indiscernible], artificial intelligence, integration on a whole set of new technology. And a bit about -- companies like ourselves, we do have to -- we don't have a big -- we don't have to invest in a big research R&D organization because all these vendors are just after ones like these. They come and offer us -- we had a very successful technology week a few months back where a lot of vendors came in to showcase their technology. And for us, it was like going to restaurant, look at the menu list and pick, pick what you like to eat, and that, for us, gives us a lot of flexibility. So -- to look outwards a lot more as against being inward looking at insular. So that's one we would drive, and we'll be talking to the market time to time about how we're making huge progress on the technology space. So the other one is about decarbonization. Flares, I think the flaring accounts for over 90% of our carbon footprint today. We've done a very, very good baseline, scanning all the assets using the latest technology, IR, infrared and we know where all those emissions are from the assets. It's very, very clear also in addition to the flares. So Scope 1, Scope 2, very much mapped out, and we have a very clear road map of how we're going to end flares or end of routine flaring. Let me quantify that because you really can't be 0 flares. You have to offset -- process offset still have to blow down your facility and then burn some gas. But our target is by 2024, we will end routine flaring. And that gives us a lot of that advantage in the sense that we didn't monetize that flared gas, which we're flaring today. It's good for the environment. And also, we're going to become responsible operator and pretty much lies with this whole desire by the world for low-carbon world. So that's the first part. In terms of projects, these projects are all being studied, well-scoped in execution. So Oben now, we will take out the flares down, convert that to LPG, which fits nicely what we already talked about. LPG then goes into the local economy to replace some of those biomass we talked about, and then driving uptime of our existing compressors and also installing new compressors for the low-gas produce system. And then the Sapele gas plant, then really one of the last big projects on the Oben LPG in 2023, and hopefully, all that will then take out all that flares and drive down cost for us because for now you do pay penalty for gas flaring. I love the story around end of routine flares. And once we're done with flares, then we now tackle the remaining 5%, 10% of our GSG by looking at our equipment, how we're changing some of the -- [indiscernible] talks about. If you look at our field operations today were driven by electricity, gas or diesel. So there are some machines or pumps that are driven by diesel, some are driven by electricity and some are driven by gas. So a lot actually driven by gas. So you still have some components that are driven by diesel. For example, when you have a plant trip, you need to go through a process you call it black start, an emergency start, and that's where diesel tends to come in. We're working on now as how do we replace that diesel with LPG and even LNG or CNG, and that we don't need to have diesel gen as back up. And that helps us with driving down the whole carbon footprint. So we're very clear in terms of the road map. And then we're looking at how we can also bring in solar and other main -- other more environment-friendly energy sources to support those equipments. Overall, that's the plan in terms of how we want to drive emissions apart from the flaring discussion. Asset integrity. I did mention that these assets are quite old, but we have worked a lot around bringing these assets almost at new state. So 2010 to 2018, we've had a road map in terms of the awareness, status and then actually been -- the regulators have aptly given us a lot of support. In 2019, we're driving a lot of improvement across meeting minimum standards. 2021, we'll see the results playing out in terms of uptime and a lot of investments still going into how we drive down our maintenance life extension on quite a number of the portfolio. And then our ambition is by 2023, we will be ISO 55001 certified, which is really one of the top standard when it comes to asset integrity in the industry. So overall, this is going to have a big impact on our operational excellence, driving down our performance to top quartile, increase asset life span, and then reduce deferment, and then also reliability across the portfolio. This is something that's very close to -- right from Roger to myself when I keep my eye on almost on a daily basis on what the weekly cadence just tracking performance. And the team has been very, very, extremely very, very engaged and very excited about how we can give these assets really long life. I think that's it for me. So in summary, I hope I've been able to paint a very confident story around how we've established our legacy with upstream business, very strong historical performance, and that's going to be -- upstream is going to be key to driving the future and then -- and all the initiatives around driving down, monetizing those asset acceleration, giving back cash to investors, decarbonizing our portfolio, and then improving project delivery, well delivery and operational excellence. Thank you very much.

So thank you, Effi, and good afternoon, ladies and gentlemen. Of course, you all know that without the upstream, there cannot be a midstream. So that's why I'm saying thank you to Effi. I'll be taking you through the midstream gas business as well as the new energy pillar, and I will start briefly with the new -- with the midstream. So the goal of our midstream business really is to develop the huge gas resources that the country has. It is mainly to accelerate the replacement of diesel and biofuels and support economic growth through the supply of reliable and low-cost energy. Our midstream model really is to supply, gas-to-power on baseload to electrify the country and to support renewables. So that's basically the goal of the midstream gas business. If I take you to the next slide. Like Roger said, Emeka says and Effi also mentioned, Nigeria has a very large gas reserves base, about 200 Tcf, and it's about 37% of the total gas reserves that we have in Africa. But there's a challenge. There's a challenge with gas utilization, and that's basically because there is infrastructure underdevelopment. And that has really impacted the access to electricity. So if you look at the chart -- I hope this works. Okay. If you look at the chart on the left, you will see that out of the total gas that is produced, gas export, gas reinjection and flared gas make up almost 80% of what comes out. So which means that we are not really utilizing the gas that gets produced. In fact, the amount of gas we flare is almost equal to the gas that we used to produce electricity. So that has always been the basis. I mean if you think about the flared gas commercialization program that the federal government has embarked on, it's mainly to harness the flared gas and convert it into power and convert it into usable income. So that has always been one of the key objectives of the midstream gas. So we have -- may have looked for options of capturing the gas, the flared gas and converting that into usable economy. If you also look at the National Gas Policy of 2017 and the declaration of gas -- the decade of gas by the government as well, you will see that everything is going towards the path of gas. Gas is pretty much the transition fuel for the future. Wood Mac, in the study that they carried for us, have said that gas-to-power market will grow from 5 gigawatts -- from the current capacity of 5 gigawatts to almost triple at 13.6 gigawatts by 2040. Okay. If we look at the -- okay. Seplat is doing an excellent job in the gas domestic market, and we'll be doing more in building market strength. And we are looking to utilize the Oben gas processing plant as a hub and mainly to keep the capacity full so that we can increase the ability to use it as a processing hub. So what we've done is to address or try and gather and mop up all the gas assets that we have within the Oben area so that we can keep the gas capacity full. We also, together with ANOH, we would -- we will -- ANOH comes on stream in the first quarter of 2022. It will increase our processing capacity to 765 million scf of gas per day. We also have the OB3, which is still in the pipeline, and it will allow us to expand gas supply to Abuja and beyond when it's completed later this year. As we talked about, the 75 million scf Sapele Gas Plant project, that is expected to come on stream in 2023. So if you look at all the pipeline, the gas processing projects we have in the pipeline, we are getting close to our 1 bcf processing -- capacity processing, which has always been the target at which we communicated to all our investors. Gas provides a natural hedge against oil price volatility, and you will see that for the past 5 years or thereabout, average gas price has been relatively flat even in areas or periods where we've had very low oil price like we experienced in 2016 and in 2020. We see that, that hasn't affected our gas price. Gas returns very good and very steady earnings, basically due to the lower taxes and the lower royalties on the gas and also the fact that there is less disruption to the gas pipelines. In terms of revenue, you will see that we've had an increase in our gas revenue year-on-year, except for 2020, where we were really affected by the COVID pandemic. 2021 outlook is likely going to put us back on the path of increase based on our Q -- first half performance. Okay. So I'll talk about ANOH. ANOH is really a flagship project for both Seplat and for the government. It's a critical gas project, which was initiated for the actualization of the gas master plan, and it's on its way to be delivered by next year. So since FID was taken in Q1 2019, we've been able to get full funding for the project. In terms of the physical project, the manufacturing of the plant and the balance of plants have been completed, and the shipping is underway. We're expecting that by the end of this month, most of the shipped equipment, especially the rotating equipment and the process equipment, will be delivered in-country. The upstream wells are currently also being drilled by Shell, who is the upstream operator of the plant. So still on ANOH. The ANOH model is one that provides income to Seplat from 2 sources: first, on the upstream side through the sale of wet gas from the NNPC and Seplat JV, which is operated by Shell, like I said; and through a unitized operating agreement with a 50-50 sharing formula between the Seplat JV and the Shell JV. The second stream of income comes from the plant itself, the midstream plant itself. And again, it's a split of 50%, 50% between an SPV, more or less, between Seplat and the Nigerian Gas Company. And the products from the processing in this case, the dry gas, the condensate and the LPG are shared in the same formula, 50-50, and they are returned to the shareholders in the form of dividends. So there are 2 sources really for the actualization of that. So with a decade of gas mantra by the federal government, we see scalable opportunities in the domestic market. For Seplat, we will continue to supply gas to the domestic market and capitalize on infrastructure capacity growth and secure additional markets in gas-to-power, both on-grid and off-grid and to supply gas to industries, to processing of NGLs and additional offtakers in the gas value chain, particularly in the LPG and in the CNG space. So there's very strong government and external support for this, especially the CNG. And then with the expansion of OB3 and the AKK, new demand centers are likely to open up. So there's opportunity for Seplat to partner with industrial customers, and we will be strategic partners really of choice as a result of our track record in the gas space. Okay. So I talked a bit about new markets in the gas value chain where we see potential and where we can play. So the gas-to-power is one, and we are -- we see the opportunity in the captive power sector where we can partner with others and supply power to industrial parks and also to hospitals and very large residential estates, manufacturing and so on and so forth. Wood Mac predicts that the captive market will grow from the current low base of about 0.2 gigawatts to 4 gigawatts by 2040. And possible entry strategies for us will be building or acquiring pipeline assets or getting or acquiring power plants. The CNG market is an emerging opportunity, and we are considering in particular for automotive purposes. On the gas products side, we'll focus on LPG markets as the replacement in fuel for biomass. The penetration of LPG currently is low. It's about 13%. And the aspiration of the government is that it will grow to 7 million tonnes per annum. And so that's an area that we see opportunity in the value chain, and we intend to take advantage of that. So domestic gas supply is predominantly to empower. And from our analysis, the upstream indicatively on a net back basis gets about $0.03 from the cost of grid electricity to the final consumer. So what that means, in essence, is that Seplat as a gas supplier to the on-grid market only has access to $0.03, which is about 20% of the entire gas value chain of on-grid electricity, which is priced at $0.15. And of course, with off-grid gas to power, the potential is even much higher. So Seplat can actually capture additional value along that value chain. If you look at diesel, which is estimated about $0.52 per kilowatt hour, there is a much bigger potential to displace that with gas. So that huge potential to Seplat to gain more in the gas-to-power value chain. If that is displaced, then that's a big value that Seplat is trying to go into. So going to the new energy, and that's our third pillar. And our third pillar, really, which is in renewable energies, is to achieve a world-class capability in renewables through the development or acquisition of new skills that open up new and profitable market. So solar, according to the study done by Wood Mac, will dominate the Nigeria energy outlook by 2040. And so there's opportunity for Seplat to create an off-grid solar power distribution business to supply the commercial and industrial sector through displacing diesel degeneration. Solar house systems is another area of prospects for the solar sector. In comparison to other countries in sub-Saharan Africa, Nigeria really ranks highest because it has the best regulation in support of mini grid solar. That's according to Wood Mac's study. So -- and that's because we see support from the World Bank. We see support from the government. And even the African Development Bank are all in support of the solar initiative. For Seplat, moving into this area, though, it will require a new set of skills, either acquired or developed, but it's an area that we want to explore, and we will get there. So the off-grid market in Nigeria is projected to be worth $17 billion by 2040 per annum, and this is based on back-of-the-envelope calculation between demand and the expected gas price. It's expected to grow to 20 gigawatts by 2040. And for the indicative price -- power price, solar is cheaper, much cheaper than the power generated from diesel. It's almost half that amount. So given the declining cost of solar electricity, we see a situation where it will be easy for end users to move to solar because it's more affordable, and it will also help to displace diesel. The country, if you look to the right of that slide, shows that there is some PV potential in the north. That's the red zone. And of course, we don't have pipeline access in the north at all, except for the new AKK that is just being developed. And so to electrify the north with solar is an opportunity that we see, and it's an area where, already, we've seen the markets being developed. We've seen companies, renewable energy companies, citing mini grids in the north and expanding it to the rural areas. So it's an area that we will look at. For now, we have looked at where areas of interest are, and we will develop that as time goes on. So I think that gives a bit of context to where Seplat is going in terms of the midstream gas and the renewables. And I think Roger will come to finish it off.

Okay, everyone. So it's -- we've bombarded you with slides, and I think you've managed to sit through a lot. So hopefully, it's been quite a lot of help. I just want to wrap up, and then what we'll then do is we'll get into some Q&A from the room, and then also, we've got Q&A online as well. So just concluding today. We've heard today that Nigeria has an incredibly fast-growing population that is starved of infrastructure. It needs energy to develop and deliver on such agenda. So social and economic development is critical. We can't have the scenario where 200 people become 450 million, third biggest country in the world that needs -- that has this access to energy. And really, what we're seeing ourselves is really part of that drive to actually get the energy in-country right for the Nigerian population. So it's really about energy access drive. We've got to do this. We've got to get the cost of energy down, and it's very expensive. And you heard today some of the numbers, and I'll run through those again very quickly. We've got 20 gigawatts of energy today. So the majority of energy today is diesel-generated energy at $0.52 a kilowatt hour. That, annually, we estimate is a $80 billion cost, and it's imported. Every single liter of that diesel is imported into Nigeria. So $80 billion of foreign exchange reserves are going out to import this diesel, and the Nigerian population is spending $0.52 a kilowatt hour. There is a huge drive to actually displace that diesel, which has a greenhouse gas emission capability; create more wealth in the country; and actually, more importantly, spur the social and economic development. If you look on-grid, $0.15 a kilowatt hour from Yetunde's slide, Seplat plays in $0.03. So 20% of that is where Seplat is playing today by selling its gas bulk. And what the message we're really giving here is we want to move down that value chain. We want to capture more of that, whether it be the $0.15 a kilowatt hour on-grid or even more interesting, I think, for us is the off-grid $0.29 a kilowatt hour. So we've got 10% of that. And what the commercial drive is, the alternative is $0.52 per kilowatt hour. So I think there's a huge opportunity for us to do that. So that's why we want to move down that value chain. In doing so, there is an environmental impact benefit of doing that. And we can drive improvement, and we can report transparent of our business. So we're being very clear what we want to do, and we want to look at other forms of gas value. We are currently not monetizing on LPG. So we're just selling that dry gas and then the C3, C4s, which will go into bottled gas. We'll then also go into households and commercial users, which will then displace firewood. Also, CNG and the government is driving very hard for auto gas, and that's a big market for us, and therefore, compresses onto our gas plants to look at that. And then as we follow that molecule down the value chain, we see opportunities in gas-to-power. And just to be clear on that, that is not looking to do highly regulated, big-ticket power plants, 500-megawatt plus. So it's not the market we're looking at. We're looking more in the smaller-scale, say, up to 100 megawatts or could be up to 200-megawatt gas-to-fire power plays because it's a natural home for our gas, okay? And it's really following that gas value chain down and capturing more of it. And obviously, as the baseload going into renewable energy, having solar and gas plays together is a natural bridge -- electricity bridge into a renewable future for the business. So it's all thought through in terms of the connectivity, which is really delivering that transition that we want to do within Nigeria, and it will drive down costs. It will save CO2 emissions. And it will be the right transition agenda for this country, which then hits the social at the same time as environmental. As investors, don't panic because, obviously, our big focus is on dividend payouts. It's return. We are seeing some recovery in the oil -- in share price back up with just -- in around 1 point a share. We believe there's more value than the capital growth of that. But irrespective of all that, what the dividends give shareholders is an annual -- actually, quarterly, is a regular return. And you heard today that we've returned over $400 million since IPO, and we will continue to do that in terms of our policy. And as Emeka pointed it, what we'd like to do is progressively grow that dividend, but we want to do in the back of a progressive growth in the revenue stream and the profitability of the business, and capturing more of the value chain will then enable that or facilitate a lot of that. In terms of investment, our investment CapEx is really targeted around maintenance CapEx. It's keeping our production at the levels they are, but it's also growth CapEx. So we really look to see where we're drilling a number of wells this year. The most activity is OML40, which is the Eland acquisition. We're drilling 3 Gbetiokun wells. And as Effi pointed out, those are prolific. There are 3,500 barrels a day each well drilled so in completion. So what they really do is those 3 wells should add around, in gross terms, around 10,000 a day production. And we have almost 5 of that. And then obviously, we have exploration at Sibiri, and that then we'll find out into probably Q1 next year when we get to the results of that. Our program next year will be similar to the programs we set this year. And so if you look over the sort of the next sort of 5 years, you're looking in that sort of $1 billion to $1.2 billion -- or $0.9 billion to $1.2 billion of CapEx in the roundup program. But our cash generation is ahead of that, and you can see that when you look at our numbers. In the first 6 months of this year, we have $125 million of operating cash flow. We have very strong EBITDA of almost $180 million of EBITDA for the 6 months. So this is a cash machine, this business. It's able to completely fund its CapEx program, pay its debt, return its dividends and have additional cash for inorganic opportunities and growth, and that's where our model really is to do that. So then leads into the acquire significant and attractive divested assets. This is not M&A for the sake of M&A. What we saw years and years ago when we came to the -- we were one of the pioneers of it as a company, we saw the changing of ownership of assets in Nigeria from IOC, International Oil Company, hands into indigenous hands. And that's really what Seplat started off as. I think in the last 7 years -- 11 years, it's been slower than we thought it was going to be, although there has been a lot of divestments. But I think over the coming years, but this is a nature of where the international oil companies are really focusing on the offshore plays, higher technology plays is you're going to see ownership in Nigeria transfer into indigenous hands. And Seplat is well positioned. It has an ability then to look at each asset individually or corporate activity individually. It can then assess it. And what we're really saying to you is, look, we're looking at assets that we can create value in, oil and gas and actually plugged into our future business. So I think we're well positioned. I think there will be attractive assets coming to the market, and Seplat is very well placed to capitalize on that. In terms of expanding new gas markets and infrastructure, again, that's an add-on to our business. We will do that naturally in the gas business, but we're looking at widening opportunities, and we have the market there to do it. And the last one is we talked a lot about it, but power generation. This is not Seplat jettisoning from being an upstream oil and gas company to leaving all that oil and gas in the ground and becoming a power utility. It's not at all, but it's a natural transition for our business to capture that value chain. So that's what we are really saying today. It's the first step in the communication. We'll also continue the communication. We have a summit in October. We have branding exercises beyond that. And so sort of watch this space, but we thought we'd just lay it out to you in this Capital Markets Day. So certainly, from my perspective, thank you very much for listening. Carl, do you want to come up and explain the rest? Thanks.