Seplat Petroleum Development Company Plc, a leading Nigerian indigenous oil and gas company dual listed on the Nigerian Stock Exchange and London Stock Exchange has announced the completion of transfer of the business activities and assets of OMLs 4, 38 and 41 from the Holding Company to its wholly owned Subsidiary Seplat West Limited.
The outcome of the transfer will not, in anyway, result in loss of tax revenue to the Government or an extinguishment of liabilities, Seplat Petroleum Development Company Plc said in a statement at the Nigerian Stock Exchange (NSE) signed by its Company Secretary/Chief Governance Compliance Officer, Edith Onwuchekwa.
Similarly, the company noted that the transfer of the business activities and assets of OMLs 4, 38 and 41 will not diminish shareholder value in (and returns from) Seplat as a listed company,
Following regulatory and partner approvals, the transfer is effective January 1, 2020. This Intra-Group transfer has been planned for some time and will not result in any change to the current business strategy for any of the assets nor will it affect the way in which the Seplat Group commercially operates. Therefore, the operatorship of the asset remains with Seplat under the Joint Operating Agreement (JOA), as the transfer to an affiliate of Seplat under the terms of the JOA is permitted.
Rationale for the transfer of assets
The transfer of OMLs 4, 38 and 41 out of Seplat Plc into Seplat West results in seven (7) wholly owned subsidiaries – Newton Energy Limited; Seplat Petroleum Development Company UK Limited; Seplat East Onshore Limited; Seplat East Swamp Company Limited; Seplat Gas Company Limited; Eland Oil and Gas Limited and Seplat West Limited, with no operating oil and gas assets directly held in the Holding Company.
The new structure of the Seplat Group is consistent with Seplat’s efforts to simplify its structure and designed towards segregating the businesses of the Group in a more efficient manner thereby reducing risk, cost and complexity. This is also expected to result in a simplified management and reporting framework for the Seplat Group.
