Seplat Energy Plc said it has terminated with immediate effect, the Consultancy Agreement between the Company’s wholly-owned subsidiary and its co-founder, A.B.C Orjiako, acting through Amaze Limited.
Under the Consultancy Agreement, Orjiako, former chairman of Seplat Energy Plc was obliged to provide defined assistance with certain external stakeholder engagements following his retirement from the Board after the 2022 Annual General Meeting in May 2022.
In a notice at the Nigerian Exchange Limited (NGX), Seplat Energy Plc said “The termination follows the suspension of the Consultancy Agreement on February 13, 2023, as unanimously approved by the Board of Directors, following repeated warnings about breaches of a material nature, such as unilaterally making significant commitments on Seplat’s letterhead without prior Board authority or knowledge.”
“This course of action was necessary to protect the Company and its Shareholders, Directors, and Officers from potential and increasing liability arising from the conduct of the Consultants, Dr. Orjiako and Amaze
Limited,” the company said in a March 23 statement signed by its board chairman, Basil Omiyi.
Seplat said it has commenced legal action against Orjiako and Amaze Limited at the Federal High Court in Abuja, to seek appropriate legal remedies.
“Seplat Energy reiterates its commitment to high standards of corporate governance across all areas of its business. The matter is now sub judice and awaiting resolution by the Court,” Seplat said.
It made this announcement at the Nigerian Exchange Limited pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange Limited, 2015 (Issuer’s Rule).
Seplat Energy Plc is Nigeria’s leading indigenous energy company. It is listed on the Nigerian Exchange Limited and the Main Market of the London Stock Exchange.
Seplat Energy is pursuing a Nigeria-focused growth strategy through participation in asset divestments by international oil companies, farm-in opportunities, and future licensing rounds.
The Company is a leading supplier of gas to the domestic power generation market.
Meanwhile, the Senator Ikechukwu Obiorah-led Legal Advisers to Dr ABC Orjiako, the Pioneer Chairman of Seplat Energy Plc said their client’s attention has been drawn to the “so-called Law Suit filed by some obviously disgruntled persons claiming to be acting in the interest of the company”.
“He had hitherto refrained from joining them in the unfortunate affray. It has however become necessary to let the public be aware of the mischief of these individuals who have masked their personal interest over that of the wellbeing of Seplat, a company that has earned a notable repute.
“Dr ABC Orjiako, the Co- founder of SEPLAT under the written authorization of the Board of Directors of SEPLAT, had the mandate to manage certain specific stakeholders of the company in respect of the transaction which necessitated the subject communication,” the legal adviser said in a statement on Friday.
Read also: Seplat: I acted in company’s best interest – Orjiako
“Due to the misinformation and mischief intended by those publications it has also become necessary to set the record straight. The letter referenced in the publications was written following appropriate discussions and was strictly for and in the best interest of SEPLAT. Also, the authorization in the said letter expressly identifies Dr Orjiako as the Pioneer Chairman.
“The public should therefore not lay any credence on the so-called Law Suit and the sensational publications the Suit was filed to achieve. As the Pioneer Chairman and Co-founder of Seplat, Dr Orjiako laboured for over 13 years to ensure the accomplished success story Seplat has become.
“It is therefore, despicable to associate him with anything that causes value erosion or brings the company’s image to disrepute as was nuanced in the publications. If anything, the letter in question is already creating value for the Company.
“Dr. Orjiako’s lawyers have been instructed to take the necessary legal steps including seeking appropriate damages from those behind this mischief,” the legal adviser said.
