Our business model leverages our core strengths, relationships and experience to create long-term value and shared prosperity for all of our stakeholders.
Joint Venture (JV) receivable and future cash call funding
Seplat Energy has the Nigerian government as Joint Venture (JV) partner in significant parts of its business, and cash call funding from the government partners is the agreed modus operandi. The government JV partners are expected to continue to remain current in paying cash calls. The Company continues to manage its JV relationships very closely and actively engages the respective government partners on timely payment of cash calls.
Our investments to grow oil and gas production both organically and inorganically have also translated into a significant increase in reserves and extended the economic life of our assets. Accordingly, the value that the government will ultimately realise over the life-span of the assets through royalty and taxes has increased dramatically.
Seplat Energy has become the second largest supplier of processed natural gas to the domestic market and we can underpin around one third of the current power grid. Improved security of supply and greater electrification is a critical multiplier effect to drive future inclusive GDP growth for Nigeria.
Seplat Energy is fulfilling the Nigerian local content objective, and was one of the first indigenous Nigerian companies to directly acquire blocks from the Major IOCs. The acquisition of Eland Oil and Gas PLC is a strong statement of intent that Seplat Energy intends to be a consolidator within the independent space in Nigeria. Today, it is estimated that Seplat Energy operated around 20% of Nigerian indigenous oil production and can supply processed gas that underpins up to 1/3 of on grid Nigerian power generation. Once the ANOH project is commissioned, Seplat Energy will be in a position to underpin 3,000MW of power generation. Seplat Energy is a standout counterparty for incumbent asset owners to transact with and well positioned to capitalise on further asset divestments from the major IOCs, future licensing rounds and farm in opportunities.
Alongside our oil business, we have prioritised the commercialisation and development of the substantial gas reserves and resources identified at our blocks, positioning Seplat Energy today as a leading supplier of processed natural gas to the domestic market in Nigeria. We aim to achieve gas flare out and have commenced activities towards this. Looking ahead, we plan to commission the 300 MMscfd ANOH gas processing plant at OML 53, which will further increase our supply of processed gas, in particular to the gas-to-power sector.
Seplat Energy has built a commercially viable business that is cognisant of any energy sector reform initiatives and works constructively with all stakeholders towards a mutually beneficial and peaceful co-existence in order to create an enabling environment for Seplat Energy's operations to run safely and securely.
The settlement of outstanding JV cash calls and set up of a funding mechanism to keep cash calls current has enabled us to increase investments in oil field developments and reserves growth. Our acquisition of Eland and FID on the ANOH gas development project reinforces our confidence in investing in the sector and as we look to the future, we will seek to further realise the full oil and gas potential of the licences and continue to deliver value to all of our stakeholders.