Seplat Petroleum Development Company Plc has announced the signing of the Shareholder Agreement and Share Subscription Agreement with the Nigerian Gas Processing and
Transportation Company (NGPTC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (NNPC). The agreement is to expedite the development of a project aimed at delivering about 3.4 billion standard cubic feet of gas per day by 2020.
NGPTC will subscribe for fifty percent of the shares in Assa North and Ohaji South (ANOH) gas development scheme, ANOH Gas Processing Company Limited (AGPC), a company that was incorporated in 2017, for the purpose of processing future wet gas production from the upstream unitised gas fields at OML 53 & OML 21, which is operated by Shell. The signed Shareholder Agreement will govern Seplat’s and NGPTC’s respective interests in the AGPC incorporated joint venture.
Other commercial agreements with NNPC and the Nigerian Gas Marketing Company (NGMC) were also executed during the signing ceremony held at NNPC headquarters in Abuja today. The agreements are an important precursor to the Final Investment Decision (FID) for the ANOH project which is expected in Q4 2018.
Commenting on the signing of the Shareholder Agreement, Austin Avuru, Seplat’s Chief Executive Officer, said:
“We are delighted to have entered into an Incorporated Joint Venture with our government partner, NGPTC. The execution of the agreements today is an important step as we head towards taking FID on the ANOH project later this year. ANOH is one of the largest greenfield gas and condensate developments in Nigeria which will supply critical and much-needed gas volumes to be internally consumed in the country into a growing domestic market”
Recall that the Nigerian Content Development and Monitoring Board (NCDMB) had ordered Seplat Petroleum Development Company Plc to suspend work on its ANOH Gas Plant project in Oil Mining Lease (OML) 53 for violating the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 by using a UAE firm for the engineering and fabrication as well as tenders for other integration and construction work without the approval of the agency. A claim the Oil company had vehemently denied.
Seplat incorporated a new subsidiary, ANOH Gas Processing Company Limited in 2017, the major activity of the subsidiary is the processing of gas from its OML 53. It is described as one of the largest greenfield gas condensate development projects in Nigeria.
Seplat Petroleum Development Company Plc was incorporated on 17 June 2009 as a private limited liability company and re-registered as a public company on 3 October 2014.
The company is listed on both the Nigerian Stock Exchange and London Stock Exchange. Its shares traded ₦650.00 on the floor of the Nigerian Stock Exchange today, with a 41.67% one-year return.