Seplat Petroleum Development Company Plc has denied allegations that it failed to remit complete dues on royalty oil, gas, concessional rental and gas flare penalty from 2013 through 2017.
The company in a release to the exchange noted that it is up to date on all statutory payments to the government, vowing to “vigorously defend its position”.
Special Presidential Investigation Panel on the Recovery of Public Property (SPIPRPP) earlier accused the Nigerian Petroleum Development Company Ltd and one of its Joint Venture partners, Seplat of short-changing the Federal Government by $1.8bn and N8.8bn from 2013 to 2017
The Okoi Obono-Obla-led panel in its report said its year-long investigation revealed that the sums of money which represents the royalties on oil and gas, concessional rental and gas flaring penalty due to the Federal Government but which the NPDC and Seplat refused to remit.
A copy of the executive summary of the report stated that apart from Seplat, other JV partners operating various Oil Mining Licences had also under-remitted funds to the Federal Government.
As part of the findings of its panel’s investigation, the report stated, “Analysis of recovered records and other documents collected including statements revealed as follows:
“That NPDC has Joint Venture agreements with the following nine companies to operate Oil Mining Leases: Seplat/NPDC JV (OML 4, 38 and 41); ND Western (OML 34); Elcrest /NPDC JV (OML 40); Neconde/NPDC JV (OML 42); NAOC (Nig. Agip Oil Coy)/NPDC JV (OML 60, 63); FHN (First Hydrocarbon Nigeria)/NPDC (OML 26); Abura/Oredo/Oziengbe (OML 65, 111); Okono/Okpoho/NPDC JV; and Shoreline/NPDC JV (OML 30).
“The NPDC and its JV partners have failed to remit to the Federal Government its complete due on royalty (oil); royalty (gas); concessional rental; and gas flared penalty.”
According to the report of the total sum of $1,824,469,208.36 allegedly not remitted to the Federal Government, the NPDC owes $1,791,045,591,18, while Seplat owes $33,423,617.18.
The report added that of the N8,825,778,039.61 due to be paid to the Federal Government, the NPDC was allegedly responsible for N7,523,749,610.15, while Seplat owed N1,302,028,429.46.
The report recommended, “Recovery of $1,824,469,208.36 and N8,825,778,039.61 underpaid assets from NPDC and Seplat Nigeria Limited
The recovery of all underpaid assets from regulators and operators of OPLs and OMLs (government and private).”
The report also recommended to the SPIPRPP to follow through “on all further enquiry activities contained in paragraph 4.0 above.”
In the said paragraph, the report stated, among others, that the Department of Petroleum Resources should shed light on the outstanding royalty payments for divested assets amounting to $745,462,045.00.
It added that the Department of Petroleum Resources would also need to explain the defrayal of Nigeria Agip Oil Company’s royalty oil payments using the balance of NAOC’s ‘good and valuable’ consideration valued at $293,102,181.93
The report stated, “It is imperative for the Managing Directors of all the following regulators, and operators of OMLs to be interviewed by the SPIP and also avail the panel with records of oil and gas royalty payments; gas flaring penalty payments; and concessional rental payment for analysis, among others:
“The regulator–Department of Petroleum Resources; government Operators of OMLs – NAPIMS and NPDC; JV, PSA and PSC Operators of OMLs; NPDC and Seplat are to attend to the SPIP and agree on terms of paying the underpaid assets from 2013 to 2017 to the government.
“The Department of Petroleum Resources is required by the SPIP to shed more light on the agreement and the approval to defray Shell Petroleum Development Company’s outstanding royalty payments for divested assets amounting to $745,462,045.00 (Atlantic Lifting).
“In addition, the DPR should also explain the defrayal of Nigeria Agip Oil Company’s royalty oil payments using the balance of NAOC’s ‘good and valuable’ consideration valued at $293,102,181.93.”
Seplat, an indigenous oil and gas company, that explores, develops, and produces oil and gas in Nigeria. The company operates a portfolio of assets in the Niger Delta region, including a 45% interest in the OML 4 that covers an area of 267 square kilometers; a 45% interest in OML 38 that covers an area of 2,094 square kilometers; and a 45% interest in OML 41 that covers an area of 291 square kilometers.
OLUFIKAYO OWOEYE
