spot_img
spot_img
25.4 C
Lagos
Wednesday, June 29, 2022

Seplat Oil Hedges Net $6.6 million Mark-to-Market Gains in H1

Must read

Seplat Petroleum Development Company said following the oil price crash at the end of the first quarter (Q1) of 2020 and in line with International Financial Reporting Standards (IFRS), it revalued its oil hedges, leading to mark-to-market gains of $6.6 million.

Seplat’s hedging policy aims to assure appropriate levels of cash flow in times of oil price weakness and volatility.

The 2020 hedging programme consists of put options at a strike price of US$45.0/per barrel protecting a volume of 4.5 million barrels (in aggregate) for the first three quarters of 2020.

An additional 1.5 million barrels was hedged for the final quarter at $30/bbl.

“The Board and management team continue to closely monitor prevailing oil market dynamics and will consider further measures to provide to provide appropriate levels of cash flow assurance in times of oil price weakness and volatility,” Seplat said.
In July Seplat hedged 1 million barrels for Q1 2021 at $30/ per barrel.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article