The Nation Newspaper

Tag: Seplat

  • Okowa commends Seplat over good community relations

    Delta State Governor Dr Ifeanyi Okowa has commended Seplat Petroleum Development Company for the giant strides it is making in the development of its host communities in Delta and Edo State.

    Okowa spoke at the commissioning of eight projects embarked upon by the NPDC SEPLAT Joint Venture in the Ugborhen community of the Sapele Local Government Area of the state.

    The Seplat projects commissioned by Okowa include: the 3.6km Elume-Ugborhen road; 3.4km Ugborhen-Ugbukurusu road; 3.76km Ugborhen-Ikeresan road; 1.09km Okuovu-1 community road; Concrete drainage system/road protection in Ugborhen; Ugborhen Housing Scheme; Ugborhen Solar Powered Water Scheme; Two blocks of 4-Classrooms and Science Laboratory at Adaka Grammar School; Ugborhen Ultra-modern town hall and Civic centre.

    The governor noted that investments by companies like Seplat in the development of host communities was bound to enhance the confidence of indigenes of oil producing communities while  encouraging peace in the Niger Delta and the country as a whole. He urged other oil prospecting companies to emulate Seplat’s consistent effort at developing their host communities.

    Okowa said: “I am glad to see partnerships like this between oil prospecting companies and their host communities. The job of government will be much lighter if oil companies and communities partner in this manner to develop our communities. I congratulate Seplat for the good work that it has done since it came into operation. I also congratulate the community for working together with the company as I look forward to seeing more oil prospecting companies engaging in this kind of positive relationships.”

    The governor thereafter donated the sum of ten million naira to the community for the furnishing of the town hall and civic centre. He also promised to construct an examination hall at the Adaka Grammar School, Ugborhen.

    Speaking earlier, Chief Executive Officer of Seplat Petroleum, Mr. Austin Avuru who thanked the Governor for honoring Seplat’s invitation explained that the welfare of members of the communities hosting the company’s operation would always remain its priority.

    He explained that Seplat was committed to the all-round development of citizens of these communities and that this influenced the decision to periodically embark on development projects affecting the health education and general wellbeing of the people as contained in the global MOU Seplat signed with its host communities in 2010.

    Also speaking, the Orodje of Okpe Kingdom, His Royal Majesty, Major Gen. Felix Mujakperuo (Rtd), Orhue I commended Seplat for the various projects with which it is transforming the landscape of  host communities. He called for peace amongst communities in the area and urged Seplat not to relent in its effort to develop the area.

    Dignitaries at the event included Deputy Governor, Barr Kingsley  Otuaro, Speaker and Delta State House of Assembly, Rt. Hon. Monday Igbuya, among others.

  • Seplat targets gas to cushion flagging oil revenue

    Seplat Petroleum Development Company Plc is focusing on growing its gas business to boost performance and moderate the impact of flagging crude oil production and falling revenue.

    At a media interactive session after the annual general meeting yesterday in Lagos, chairman, Seplat Petroleum Development Company Plc, Dr. Ambrosie Orjiako, told shareholders that the company has stepped up investments in its gas production business to mitigate the adverse effect of the decline in the price of the crude oil in the international market.

    According to him, the company had in mid-year 2015 successfully completed and commissioned its Oben gas plant phase I expansion, which saw the company’s overall gross processing capacity double to 300 MMscfd.

    He said the Oben gas plant phase II expansion is underway with additional processing modules ordered noting that once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 MMscfd.

    “Alongside the significant increase in gas production, the positive financial impact of Seplat’s gas business was evident as revenues from gas sales increased 185 per cent year-on-year to $77 million,” Orjiako said.

    In his remarks, chief executive officer, Seplat Petroleum Development Company, Mr. Austin Avuru, added that the company has taken its gas business across a transformation threshold with further expansion still to come.

    He explained that the company had acted quickly and decisively in response to weak oil price environment by adjusting its work programme and cost structures.

    While acknowledging that the company’s 2016 full year production expectation has been impacted by the current shut-in of the Forcados terminal, Avuru said the company is in a much better position to withstand such interruption than in previous years.

    “Our gas business takes on additional importance by providing a continuing revenue stream that is de-linked from the oil price and our enlarged portfolio offers us the scope for greater diversification. Our strong focus remains on protecting the business and managing value through effective cost reduction, optimising operations, deleveraging and strengthening the balance sheet as this will position the company to take advantage of opportunities following the current downturn,” Avuru said.

  • Seplat declares interim dividends as net profit drops by 62%

    Seplat Petroleum Development Company Plc recorded low performance in the third quarter as net profit dropped by 62 per cent to N13.6 billion.

    The board of directors of Seplat Petroleum Development Company Plc has however recommended distribution of interim dividend of $0.04 or four cent to shareholders of the upstream oil company.

    Shareholders whose names are found on the company’s register at the close of business on October 29, 2015 will be entitled to the cash benefit. Nigerian investors and others who may opt to receive their dividends in Naira will use the exchange rate on October 29 to determine the equivalent Naira value.

    The nine-month report for the period ended September 30, 2015 showed that profit after tax dropped from N35.4 billion in 2014 to N13.6 billion in 2015. Profit before tax had dropped from N35.4 billion to N13.54 billion. Operating profit also declined from N39.51 billion to N22.69 billion while gross profit slumped to N38 billion in third quarter 2015 as against N54.6 billion in third quarter 2014. The oil company’s turnover had dropped from N92.01 billion to N83 billion.

    The council of the Nigerian Stock Exchange (NSE) had recently approved application by Seplat to create a multi-million shares employee incentive scheme that will ensure periodic distribution of the equities of the oil and gas exploration and production company to employees. Seplat is listed on the NSE and the London Stock Exchange (LSE).

    With the approval, Seplat will finalise the process of establishment of an “Employee Long-Term Incentive Plan” under which more than 10.13 million ordinary shares of 50 kobo each will be warehoused and distributed to pre-qualified employees of the oil company. The approved initial shares are currently valued at about N2.48 billion. Seplat opened this week at N244.69 per share.

    The “Employee Long-Term Incentive Plan” is the final phase of a two-part incentive scheme under which the six-year old company plans to reward directors and employees, especially those executives and directors that contributed to its hugely successful initial public offering (IPO).

    After a highly successful global IPO of $500 million, Seplat had made history mid April 2014 as the first upstream company to be listed on the NSE. It also simultaneously listed its shares on the LSE. The initial offer size of the IPO was expected to raise gross proceeds of approximately $500 million, equivalent to £300.9 million and N82.5 billion. It was however oversubscribed. It subsequently increased its capital base by about N5.78 billion with the absorption of the oversubscription from the IPO by adding 10.03 million ordinary shares of 50 kobo each to its shares. The company attributed the additional shares to oversubscription and allotment that resulted from the IPO.

    The Nation had earlier exclusively reported that Seplat Long Term Incentive Plan (LTIP) consists broadly of two components including share incentives related to the company’s successful global initial public offering and annual share bonus.

    Under the global IPO bonus scheme, the company would issue bonus shares to directors and senior management staff at nominal cost to the company.

    The company will issue ordinary shares to its executive directors and senior management as a reward for their contribution to achieving a successful global offer as stated in the prospectus dated April 9, 2014. A total of 7.75 million ordinary shares qualify as global offer bonus shares out of which 3.87 million shares vest immediately but will be held till 2015 and 3.873 million shares will vest after two years.

    Also, the company will also issue unspecified ordinary shares under its annual share incentive scheme.  The annual bonus scheme is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.

  • Seplat gets approval to distribute 10.13m shares to employees

    The council of the Nigerian Stock Exchange (NSE) has approved application by Seplat Petroleum Development Company Plc to create a multi-million shares employee incentive scheme that will ensure periodic distribution of the equities of the oil and gas exploration and production company to employees. Seplat is listed on the NSE and the London Stock Exchange (LSE).

    With the approval, Seplat will finalise the process of establishment of an “Employee Long-Term Incentive Plan” under which more than 10.13 million ordinary shares of 50 kobo each will be warehoused and distributed to pre-qualified employees of the oil company. The approved initial shares are currently valued at about N2.48 billion. Seplat opened this week at N244.69 per share.

    The “Employee Long-Term Incentive Plan” is the final phase of a two-part incentive scheme under which the six-year old company plans to reward directors and employees, especially those executives and directors that contributed to its hugely successful initial public offering (IPO).

    After a highly successful global IPO of $500 million, Seplat had made history mid April 2014 as the first upstream company to be listed on the NSE. It also simultaneously listed its shares on the LSE. The initial offer size of the IPO was expected to raise gross proceeds of approximately $500 million, equivalent to £300.9 million and N82.5 billion. It was however oversubscribed. It subsequently increased its capital base by about N5.78 billion with the absorption of the oversubscription from the IPO by adding 10.03 million ordinary shares of 50 kobo each to its shares. The company attributed the additional shares to oversubscription and allotment that resulted from the IPO.

    The Nation had earlier exclusively reported that Seplat Long Term Incentive Plan (LTIP) consists broadly of two components including share incentives related to the company’s successful global initial public offering and annual share bonus.

    Under the global IPO bonus scheme, the company would issue bonus shares to directors and senior management staff at nominal cost to the company.

    The company will issue ordinary shares to its executive directors and senior management as a reward for their contribution to achieving a successful global offer as stated in the prospectus dated April 9, 2014. A total of 7.75 million ordinary shares qualify as global offer bonus shares out of which 3.87 million shares vest immediately but will be held till 2015 and 3.873 million shares will vest after two years.

    Also, the company will also issue unspecified ordinary shares under its annual share incentive scheme.  The annual bonus scheme is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.

    Also, as part of the global offer bonus, Seplat will issue shares to all non-executive directors who have served on its board for at least nine months as at the date of the global offer. Under this incentive, the non-executive directors are eligible to subscribe to ordinary shares of the company with an equivalent value of 200,000 pounds based on the United Kingdom’s global offer share price at the nominal value of the shares based on the global offer share price.

    According to the plan, the legal and beneficial ownership of the shares will vest in the non-executive directors from the subscription date, with a restriction on the sale of the shares, such that the directors cannot sell or encumber any of the shares until the first anniversary of the global offer at which point they may sell up to 50 per cent of the scheme shares while any of the remaining 50 per cent cannot be sold until after the second anniversary of the global offer.

    “It is the intention of Seplat to issue the LTIP shares at nominal cost to the company as part of the agreed employee incentive scheme in consideration of their services to the company over a period of time. The company will pay the cost of the shares at nominal price from its profit and allotment will be made from the company’s authorised share capital and will not be bought on the floor of the NSE,” according to the document notifying of the intention of the oil company to issue and list the shares.

    The shares would be issued from the unissued shares of Seplat at nominal price and allotted to the employees and trustees at nominal price too.

    Seplat had earlier informed the NSE of its intention to issue and list the shares. Seplat currently has 553.31 million ordinary shares listed on the NSE.

    Seplat had explained that the LTIP was approved and disclosed in the prospectus that was issued in April 2014 and the revision was made to the earlier approval in June 2014. The company stated that at its annual general meeting held in June 2014, shareholders approved the LTIP for the company’s staff.

    According to the company, the LTIP is intended to increase the employee productivity, morale and loyalty by focusing their performance more on long-term goals by tying employee performance to rewards.

    Seplat was founded in 2009 by Shebah Petroleum Development Company Limited and Platform Petroleum (Joint Ventures) Limited for the purpose of investing in Nigerian oil and gas opportunities. Maurel& Prom, a French independent oil company, subsequently acquired a 45 per cent equity interest in SEPLAT; this interest was later spun-off to form Maurel & Prom Nigeria S.A, which is now known as Maurel & Prom International.

     

    In July 2010, SEPLAT acquired a 45 per cent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil mining leases-OMLs 4, 38 and 41, which are located in the Niger Delta. In June 2013, the company entered into an agreement for the acquisition of a 40 per cent participating interest in the Umuseti/Igbuku marginal field area located within OPL 283 in the Niger Delta.

     

     

     

     

  • Nigeria to refine 1.2 million barrels oil daily by 2020

    Nigeria to refine 1.2 million barrels oil daily by 2020

    Given the necessary backing, the Independent Petroleum Producers Group (IPPG) on Wednesday maintained that Nigeria’s domestic oil refining capacity could hit 1.2 million barrels daily by the year 2020.

    The Chief Executive Officer (CEO) of Seplat Petroleum, Austin Avuru, after a meeting with President Muhammadu Buhari spoke with State House correspondents on behalf of 20 indigenous groups that produce natural gas and crude oil.

    Stressing that IPPG is made up of indigenous companies responsible for over 200,000 barrels of oil production and over 900 million cubic feet of gas production per day, he said that is a very significant segment of the upstream sector of the oil and gas industry.

    Speaking on private refineries, he said: “It was one of the points we raised with President, we think that by 2020 domestic refining capacity should not be less than one million barrel of oil per day in domestic refining.

    “We actually put 1.2 million barrels domestic refining capacity per day and that falls on our doorstep as indigenous operators.

    Asked how the target would be achieved, he said: “It would be achieved. Some construction is already ongoing by indigenous companies and between some others who are coming in with smaller sized refineries and in partnership with NNPC. We are confident that by 2020 we will deliver 1.2 million domestic refining capacity.

    “We thought it was necessary to engage the President, then fortunately the Vice President, permanent secretary, GMD of NNPC were all there. So it was very useful discussion,” he added

    Speaking further on the necessity of the visit to the President, he said: “Because if you watch the way the oil and gas sector is evolving, increasingly the key segments of the oil and gas industry, the onshore segment and the swamp, oil is now falling into the hands of Nigerian Independent, and which is why in the past 5 years we have made so much investment over $9billion in just acquiring these assets and over $1billion each year in work programme investment and this is growing.”

    According to him, the group is seeking ways to become a very critical partner to government in the delivery of natural gas and other products into the domestic economy.

    He said that the group called for the meeting with the President as it identified with all his policy direction.

    He said: “We realised we are very critical partners that he needed to know about and to engage with very early in the administration of the President. So we called for the meeting and he obliged us.

    “Mr President was very receptive and promised that all the help and support we need to succeed as indigenous producers we will get it. Specific requests will go to the GMD when we engage him.

    “What happened today was all parties, stakeholders and all our partners in government, which is partner to indigenous operators in government, were present at this engagement. Of course, we would now follow it up with more specifics when we meet with the GMD NNPC.

    He said that the indigenous companies don’t have to take over from the multinational but will complement each other.

    He said: “The multinational are going into some areas which we are unlikely to go into. Deep offshore, LNG, and whereas the onshore terrain and delivery of gas to domestic market, these have become our frontiers.

    On the about 200 barrel per day production, he said: “That is 10% today. Just in the past five years, up from near zero and we anticipate that in the next 5years by 2020 we will account for 30 %
    production of about 3 million barrels per day that is very significant especially when in addition to that we account for half of the total gas delivery to the domestic market. We can get as high as 7PCF per day by 2020.”

     

  • Seplat recalls N100b investment deposit

    Seplat Petroleum Development Company Plc has recalled $408 million, about N100 billion at current parallel market, from an escrow account set up for a deposit for a potential investment.

    A regulatory filing indicated that Seplat recalled the deposit through its wholly owned subsidiary Newton Energy Limited for the release of the funds from escrow that had previously been allocated as a refundable deposit against a potential investment. Seplat and Newton agreed on the release of the funds.

    The escrow account was originally set up in connection with a potential acquisition of an asset by a consortium, which Newton has an option to invest into.

    Seplat said it was recalling the funds because of material delays in the underlying acquisition and therefore it sought the consent of other parties in the consortium to release the funds.

    “The remaining $45 million of the $453 million which was allocated as a refundable deposit remains as a deposit with the potential vendors of the asset whilst negotiations between the consortium and vendors continue,” Seplat stated.

    The oil exploration and production company noted that certain recent events have led to the restart of negotiations by the consortium to secure the asset, and it would continue to work with other members of the consortium.

    Seplat added that as the process of negotiations continues, it has also placed $29 million into a new escrow account in London, pending agreement of final terms of the acquisition transaction. Newton has also agreed to pay a portion of previously incurred consortium costs totalling $11 million, with immediate payment of $3.5 million and payment of $7.5 million on a deferred basis. The remaining balance of $368 million has been returned to the group.

    According to the company, in the event that terms can be agreed for the potential acquisition of the asset by the consortium and Newton agrees to proceed with the investment, the funds in escrow will be released back to Newton. However, where Newton at its discretion decides not to proceed with the potential investment, an additional payment of $20 million will be made to other consortium members with the remaining funds in escrow released to Newton.

    The Nation recently reported exclusively that Seplat is issuing bonus shares valued at more than N3.5 billion to directors and senior management staff of the oil exploration and production company. Seplat will issue the shares under its Long Term Incentive Plan (LTIP) at nominal cost to the company and distribute the ordinary shares to executive directors, non-executive directors and top management staff.

    The LTIP consists broadly of two components including share incentives related to the company’s successful global initial public offering and annual share bonus.

    Under the global IPO bonus scheme, the company will issue ordinary shares to its executive directors and senior management as a reward for their contribution to achieving a successful global offer as stated in the prospectus dated April 9, 2014. A total of 7.75 million ordinary shares qualify as global offer bonus shares out of which 3.87 million shares vest immediately but will be held till 2015 and 3.873 million shares will vest after two years.

    Also, the company will also issue unspecified ordinary shares under its annual share incentive scheme.  The annual bonus scheme is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.

    Also, as part of the global offer bonus, Seplat will issue shares to all non-executive directors who have served on its board for at least nine months as at the date of the global offer. Under this incentive, the non-executive directors are eligible to subscribe to ordinary shares of the company with an equivalent value of 200,000 pounds based on the United Kingdom’s global offer share price at the nominal value of the shares based on the global offer share price.

    After a highly successful global IPO of $500 million, Seplat had made history mid April 2014 as the first upstream company to be listed on the NSE. It also simultaneously listed its shares on the London Stock Exchange (LSE). The initial offer size of the IPO was expected to raise gross proceeds of approximately $500 million, equivalent to £300.9 million and N82.5 billion. It was however oversubscribed. It subsequently increased its capital base by about N5.78 billion with the absorption of the oversubscription from the IPO by adding 10.03 million ordinary shares of 50 kobo each to its shares. The company attributed the additional shares to oversubscription and allotment that resulted from the IPO.

    Seplat was founded in 2009 by Shebah Petroleum Development Company Limited and Platform Petroleum (Joint Ventures) Limited for the purpose of investing in Nigerian oil and gas opportunities. Maurel& Prom, a French independent oil company, subsequently acquired a 45 per cent equity interest in SEPLAT; this interest was later spun-off to form Maurel & Prom Nigeria S.A, which is now known as Maurel & Prom International.

    In July 2010, SEPLAT acquired a 45 per cent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil mining leases-OMLs 4, 38 and 41, which are located in the Niger Delta. In June 2013, the company entered into an agreement for the acquisition of a 40 per cent participating interest in the Umuseti/Igbuku marginal field area located within OPL 283 in the Niger Delta.

  • Seplat to distribute N3.5b bonus shares to directors, others

    Seplat Petroleum Development Company Plc will issue bonus shares valued at more than N3.5 billion to directors and senior management staff of the oil exploration and production company, according to a document obtained yesterday.

    Seplat will issue the shares under its Long Term Incentive Plan (LTIP) at nominal cost to the company and distribute the ordinary shares to executive directors, non-executive directors and top management staff. Seplat’s share price opened yesterday at N336.05 per share.

    The LTIP consists broadly of two components including share incentives related to the company’s successful global initial public offering and annual share bonus.

    Under the global IPO bonus scheme, the company will issue ordinary shares to its executive directors and senior management as a reward for their contribution to achieving a successful global offer as stated in the prospectus dated April 9, 2014. A total of 7.75 million ordinary shares qualify as global offer bonus shares out of which 3.87 million shares vest immediately but will be held till 2015 and 3.873 million shares will vest after two years.

    Also, the company will also issue unspecified ordinary shares under its annual share incentive scheme.  The annual bonus scheme is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.

    Also, as part of the global offer bonus, Seplat will issue shares to all non-executive directors who have served on its board for at least nine months as at the date of the global offer. Under this incentive, the non-executive directors are eligible to subscribe to ordinary shares of the company with an equivalent value of 200,000 pounds based on the United Kingdom’s global offer share price at the nominal value of the shares based on the global offer share price.

    According to the plan, the legal and beneficial ownership of the shares will vest in the non-executive directors from the subscription date, with a restriction on the sale of the shares, such that the directors cannot sell or encumber any of the shares until the first anniversary of the global offer at which point they may sell up to 50 per cent of the scheme shares while any of the remaining 50 per cent cannot be sold until after the second anniversary of the global offer.

    “It is the intention of Seplat to issue the LTIP shares at nominal cost to the company as part of the agreed employee incentive scheme in consideration of their services to the company over a period of time. The company will pay the cost of the shares at nominal price from its profit and allotment will be made from the company’s authorised share capital and will not be bought on the floor of the NSE,” according to the document notifying of the intention of the oil company to issue and list the shares.

    The shares would be issued from the unissued shares of Seplat at nominal price and allotted to the employees and trustees at nominal price too.

    A source in the know said that Seplat has already informed authorities at the Nigerian Stock Exchange (NSE) of its intention to issue and list the shares. Seplat currently has 553.31 million ordinary shares listed on the NSE with a market value of N185.94 billion at the opening of the market yesterday.

    Seplat had explained that the LTIP was approved and disclosed in the prospectus that was issued in April 2014 and the revision was made to the earlier approval in June 2014. The company stated that at its annual general meeting held in June 2014, shareholders approved the LTIP for the company’s staff.

    According to the company, the LTIP is intended to increase the employee productivity, morale and loyalty by focusing their performance more on long-term goals by tying employee performance to rewards.

    After a highly successful global IPO of $500 million, Seplat had made history mid April 2014 as the first upstream company to be listed on the NSE. It also simultaneously listed its shares on the London Stock Exchange (LSE). The initial offer size of the IPO was expected to raise gross proceeds of approximately $500 million, equivalent to £300.9 million and N82.5 billion. It was however oversubscribed. It subsequently increased its capital base by about N5.78 billion with the absorption of the oversubscription from the IPO by adding 10.03 million ordinary shares of 50 kobo each to its shares. The company attributed the additional shares to oversubscription and allotment that resulted from the IPO.

    Seplat was founded in 2009 by Shebah Petroleum Development Company Limited and Platform Petroleum (Joint Ventures) Limited for the purpose of investing in Nigerian oil and gas opportunities. Maurel& Prom, a French independent oil company, subsequently acquired a 45 per cent equity interest in SEPLAT; this interest was later spun-off to form Maurel & Prom Nigeria S.A, which is now known as Maurel & Prom International.

    In July 2010, SEPLAT acquired a 45 per cent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil mining leases-OMLs 4, 38 and 41, which are located in the Niger Delta. In June 2013, the company entered into an agreement for the acquisition of a 40 per cent participating interest in the Umuseti/Igbuku marginal field area located within OPL 283 in the Niger Delta.

  • Supreme Court bars Chevron, Seplat from selling disputed oil blocks

    Supreme Court bars Chevron, Seplat from selling disputed oil blocks

    The Supreme Court yesterday ordered Chevron not to take any step or action regarding the sale of the oil mining lease (OMLs) 52, OML 53 and OML 55 – to Seplat Petroleum Development Company pending the determination of an appeal by Britannia-U Nigeria Limited.

    Brittania-U Limited’s appeal is against an earlier ruling by the Appeal Court, Abuja, which vacated an order of interlocutory injunction by a High Court, restraining Chevron and Seplat from proceeding to conclude any deal on the two oil leases.

    A five-man bench, led by Justice Tanko Muhammad issued the order, directing parties in the case to maintain the status quo. He said: “No party is allowed to take any step that will affect the res (subject matter) of the appeal.”

    The court’s order was informed by the refusal of lawyers representing parties to give undertaking that their clients would not take steps that would affect the case.

    Appellant’s lawyer, Rickey Tarfa (SAN), had urged the court to order parties not to take further steps  on the subject of the case on realising that he would be unable to argue his application for mandatory injunction seeking to reverse steps taken by Chevron to sell the disputed oil bloc to Seplat.

    Tarfa reminded the court that it had, during last hearing date of March 24 this year, fixed yesterday, May 18, for hearing of his application for mandatory injunction.

    Seplat’s lawyer, Damian Dodo (SAN), though did not object to Tarfa’s position, but noted that the substantive appeal was ripe for hearing, urging the court to hear the main appeal rather than dissipating energy in first hearing an interlocutory application.

    Lawyer to Chevron Nigeria and BNP Paribas Securities Corp, Uche Nwokedi (SAN) and lawyer to Chevron U.S.A Inc, Hermant Patel argued in similar vein, following which the apex court ordered parties to maintain status quo pending the outcome of the appeal, which hearing it adjourned to October 6 this year.

    Crisis started when Chevron offered for sale OMLs 52, 53 and 55 and invited bids from firms. The sale of the assets became controversial after Chevron, in a bid to ensure transparency put the assets through a public bidding, failed to make a public announcement of a winner, a reserve bidder and unsuccessful bids.

    It, then, allegedly turned its back on the highest bidder, Brittania-U Nigeria Limited, and began to deal with Seplat behind the scene. Brittania-U went to court to contest Chevron’s action of not declaring it winner after it posted a $1.67 billion bid for the three assets, an amount later revised to $1.015 billion after both companies’ officials met in Houston, United States.

  • Stop that, Seplat!

    Stop that, Seplat!

    •We should not tolerate the firm’s decision to pay dividend in foreign currency

    THE decision of Seplat Petroleum Development Company Plc to pay its dividend in foreign currency is unlawful and should be stopped immediately. We also call on all other Nigerian business entities that engage in similar acts of economic sabotage to stop such conducts . Should Seplat and indeed other companies operating under the Nigerian legal regime ignore this notice, the various security agencies, particularly the Economic and Financial Crimes Commission (EFCC) should institute a probe, and where any of the companies is found culpable, the full weight of the law should be brought to bear on such irresponsibility.

    We also urge the Nigerian shareholders to exert all influence within their powers, to resist the attempt to force them to open domiciliary account, in order to receive their dividend. As they already observed, it is strange that while the shares were sold in naira, the shareholders are now asked to open domiciliary accounts to receive the dividends due to them. Accepted that Seplat is listed on the London Stock Exchange, the officials of the company must realise that in Nigeria, the company is a local company under the country’s laws.

    Indeed even without the intervention of the security agencies, we consider it strange that companies operating as indigenous companies, under the Companies and Allied Matters Act 1990, would seek to undermine our national legal tender. The company’s officials and similar culprits deserve to answer for their irresponsible conducts. If there is a loophole under which such economic sabotage is operated, then it should be plugged immediately, as Nigeria should not allow a parallel legal tender operating independently as alternative means of exchange.

    Unfortunately, because of the laxity in the enforcement of our national laws, a lot of Nigerian companies and individuals freely demand for rents and other payments in foreign currencies. They engage in such unlawful conducts because, over the years, the enforcement agencies have failed to do their work. This must stop, in the interest of our national economy, which had suffered from duplicitous conducts of our national economic managers in the past. Part of our challenge has been the application of different standards for different operators in the economy.

    One glaring outcome of this laxity is what is commonly referred to as the rent economy, for which our nation has paid dearly. Under that system, many so-called frontline businesses are run on dubious paradigms of abuse that destroy instead of grow the national economy. The result is that many operators are mere parasites, who rely on illegal benefits at every opportunity. Such economic hooliganism is made possible because the regulators are either compromised or incapable of policing the national economy. What the government must do is to set clear common national standards and insist on their enforcement.

    We urge a change of heart, both by the security agencies and the executive authority, if we truly desire change. With the impending change in the leadership of the country, it is expected that the in-coming Federal Government would live up to its slogan. We expect that the change would happen at the policy making level, and also at the implementation and enforcement levels, to wrought a new national economy that is founded on the rule of law, instead of the rule of the thumb. To allow the current duplicity as exemplified by Seplat to continue, is to dig deeper, even when our economy is already in a hole.

     

  • Seplat shuts Oben gas plant

    Seplat Petroleum Development Company Plc Joint Venture has shut its Oben gas plant to enable tie-in of its expansion unit with the existing plant.

    The company said the 10 day long shut down is scheduled for February 22nd to March 5th and will enable the company tie in its newly installed, 2 x 75 million standard cubic feet per day (mmscf/d) unit into the company’s existing gas plant.

    In a statement issued by the company, the Chief Executive Officer, Austin Avuru, said: “Post tie-in operation, SEPLAT will have a single homogenous plant consisting of 2 by 45 MMSCF and 2 by 75 MMSCF trains and will be able to deliver 240MMSCF/D West African Gas Pipeline (WAGP) specification gas post-commissioning, from the Oben node. This facility expansion and upgrades will bring the company’s overall daily gas production capacity to slightly over 300mmscf/d.”

    During the shutdown, Seplat’s current daily production of 135MMSCF, from Oben node will “not be available, however, the company will maintain gas availability of 60mmscf daily from its Sapele node.”

    The shut-down, provides the company an opportunity to enhance its current gas delivery into the national gas grid. This achievement aligns with Seplat’s short to medium term domestic gas commercialization strategy, while facilitating greater power generation in the country, Avuru said.

    Last November, SEPLAT signed a memorandum of understanding (MOU) with the Ministries of Petroleum Resources and Power, in conjunction with the Central Bank of Nigeria and the National Electricity Regulatory commission (NERC) as well as the Nigerian national Petroleum Corporation (NNPC), and Gas Aggregation Company Nigeria Limited for gas supply. Improved gas production enables the company meet its obligations and achieve its short to medium term gas objectives.

    Avuru noted that indeed “the company’s investment to develop its gas infrastructure buttresses our commitment to boost gas supply to the Nigerian Electricity Supply Industry (NESI) and support the Federal Government’s commitment to the reform of the Power Sector.”