• Thursday, March 28, 2024
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Seplat Group transfers OMLs 4,38 and 41 to Seplat West Limited

Seplat

Seplat’s Holding Company, last week effected inter-group transfers with the transfer of business activities and assets of OMLs 4, 38 and 41 from the Holding Company to its wholly owned subsidiary, Seplat West Africa Limited. The transfers were effective January 1, 2020 consequent upon regulatory approvals. The transfers will not affect tax payment to government, shareholders’ value nor its obligations to its creditors.

‘Seplat Petroleum Development Company Plc, a leading Nigerian indigenous oil and gas company dual listed on the Nigerian Stock Exchange and London Stock Exchange, today announces 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. 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”, Edith Onwuchekwa, governance compliance officer said in a statement to the Exchange.

Last week Friday, investors traded 14,754 units of Seplat’s shares worth N5.7 million to close at N428.80 per share. Year to date, its share price has returned -34.8 percent.

Due to the impact of covid 19, Seplat’s first quarter revenue for the period ended March 31, 2020 declined by 18.2 percent to $130.5 million from $159.5 million in the corresponding quarter in 2019. Operating loss was $77 million in Q1 2020 compared with an operating profit of $32.5 million in Q1 2019. Loss before deferred tax was $105.8 million in Q1 2020x as against $35.8 million in similar period in 2019.

Apart from the three OMLs transferred to its subsidiary, others within the group include OML 40; OPL 283 and OML 53. In Q1 2020, OML 40 produced 10,056 bopd and 10, 056 boepd oil equivalent. OPL 283 produced 705 bopd and 705 boepd, while OML 53 produced 2,886 bopd and 2, 886 boepd.

‘‘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’’, Onwuchekwa added.