Media Publications

RNS Number : 5871Q

Seplat Petroleum Development Co PLC

26 February 2021

 

Seplat Petroleum Development Company Plc ("Seplat" or the "Company")

Media Publications

Lagos and London - 26^th February 2021: Seplat notes some media coverage alleging improper conduct by the Company. Whilst it is Seplat's policy not to comment on press articles, on this occasion it is deemed necessary to clarify Seplat's position on the contents of the inaccurate media coverage.

PAYMENTS TO THE FEDERAL GOVERNMENT OF NIGERIA

Seplat is current on its royalties to the Federal Government of Nigeria, with a record of increased royalties over a decade of successful production. Reference in the media coverage was made to the assets that are held by Seplat in joint venture partnership with the Nigerian Petroleum Development Company Limited (NPDC). These assets are OMLs 4, 38 and 41. In 2018, the President and Honourable Minister of Petroleum Resources approved the 20-year renewal of OMLs 4, 38 and 41 and Seplat satisfied all conditions for the license renewal, including our full payment of US$25.9 Million Renewal Bonus. Please refer to our Corporate Announcement dated 15 November 2018 for more details.

OMLs 4, 38 and 41 are amongst our various assets that continue to yield significant revenues for the Federal Government of Nigeria.

GRANT OF PIONEER TAX STATUS INCENTIVE

Seplat followed the prescribed process for applying for pioneer tax incentive through the Nigerian Investment Promotion Council ("NIPC"), as the government body responsible for investment promotion. At the time of the application, Seplat was aware that, in line with the objective of the NIPC Act, the Government intended to promote indigenous participation and investment in the oil and gas industry. Consequently, Seplat was one of 15 oil and gas companies that were granted the pioneer tax incentive.

The Federal Government and the Federal Inland Revenue Service have long since recognised the pioneer tax incentive that was granted to Seplat. Indeed, after receiving the pioneer tax incentive, Seplat's royalty payments to the Government have increased from an average of US$40 Million in 2010 to US$101 Million in 2020 for all assets.

Please refer to our Corporate Announcement dated 15 May 2015, which addresses in detail the grant of pioneer status to Seplat.

CARDINAL DRILLING

Seplat is not a shareholder of Cardinal Drilling Services Limited; neither is Seplat a party to (or a guarantor of) the loan facility that was granted to Cardinal Drilling. The circumstances around the loan facility between Access Bank and Cardinal Drilling are presently before the courts for adjudication.

CORPORATE GOVERNANCE

As a dual listed Company with a strong record of compliance and fundraising, Seplat observes the highest standards of corporate governance to which its Directors, officers and employees adhere. The details of our corporate governance practices are available on our website and our annual reports.

- ENDS -

For: Seplat Petroleum Development Company Plc

MRS. EDITH ONWUCHEKWA

Company Secretary and General Counsel

Enquiries:

Seplat Petroleum Development Company Plc
Emeka Onwuka, CFO	[phone]
Chioma Nwachuku, GM External Affairs and Communications
Edith Onwuchekwa, Company Secretary and General Counsel
FTI Consulting
Ben Brewerton / Sara Powell	[phone]
	[e-mail]

Notes to editors

Seplat Petroleum Development Company Plc is a leading indigenous Nigerian energy company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange ("LSE") (LSE:SEPL) and Nigerian Stock Exchange ("NSE") (NSE:SEPLAT). Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds.  For further information please refer to the company website, http://seplatpetroleum.com/

 

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