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Energy

Seplat transforms to full-fledged holding company, transfers oil assets to subsidiary

The new arrangement is expected to result in a simplified management framework for the Group.

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Seplat Petroleum

Seplat Petroleum Development Company Plc, a leading Nigerian indigenous oil and gas firm, which is listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), has transformed into a full-fledged holding company with all its assets managed by its wholly-owned subsidiaries.

The indigenous oil giant has announced the completion of the 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 with effect from January 1, 2020.

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This was disclosed in a notification that was sent to the Nigerian Stock Exchange by the oil firm and signed by its Company Secretary/Chief Governance Compliance Officer, Mrs. Edith Onwuchekwa.

According to the notification, the Intra-Group transfer had been planned for some time, so it will not result in any change to the current business strategy for any of the assets, nor will it affect the way that the Seplat Group commercially operates. Therefore, the operatorship of these assets still 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.

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READ ALSO: Chipper Cash just raised $13.8 million Series A funding

The transfer of OMLs 4, 38 and 41 from Seplat Plc to Seplat West results in the creation of 7 wholly-owned subsidiaries namely: 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 company explains this new structure is consistent with its 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. It is also expected to result in simplified management and reporting framework for the Group.

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It is also stressed in the notification that the outcome of the transfer will not, in any way, result in loss of tax revenue to the Government or extinguishment of liabilities. Similarly, it will not diminish shareholder value in (and returns from) Seplat as a listed company.

The transfer is not expected to impact the ratings of the Group, according to credit rating agencies, following the company’s discussions with them.

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Patricia

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Energy

FG approves new board for NLNG, BGT

The change was necessary because the current board members had been in office since 2005.

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FG approves new board for NLNG, BGT

Federal Government has approved the newly reconstituted boards of Nigeria Liquified Natural Gas(NLNG) and Bonny Gas Transport Limited (BGT).

This was disclosed in a statement issued by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja on Monday.

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According to him, the new board, which was approved by President Muhammadu Buhari, was necessary because the current board members had been in office since 2005.

He disclosed that the new board members for the NLNG include Dr Edmund Daukoru as Chaiman, Mr Henry lkem-Obih as a Member and Dr Rabiu Sulaiman as a Member.

Other Members include the Group Managing Director of the Nigerian National Corporation (NNPC), Malam Mele Kyari and the Permanent Secretary, Ministry of Petroleum Resources, Mr Bitrus Nabasu.

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READ MORE: Africa’s richest woman has assets seized by Portugal

He also said that Daukoru was also approved as the President of the Board of BGT while Doyin Akinyanju and Abdul Abba are members.

The minister noted that Kyari and Nabasu were also members of the board.

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“I will like to use this opportunity to thank the chairman and other outgoing board members of NLNG for steering the companies to record successes, particularly the Train 7 FID.

“l wish the exiting members good health and more successes in their future endeavors.

“To the incoming members of the board, I congratulate you on this appointment; your selection is based on your experience, integrity and expertise.

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READ MORE: FG discovers crude oil in north, says there’s more 

“I, therefore,urge you to bring all these to bear in the discharge of your responsibilities in line with the progressive agenda of Mr President,” he said.

The News Agency of Nigeria(NAN) reports that some of the new board members had worked in the industry in the past.

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Daukoru was a former Minister of State for Energy and also Secretary General of the Organisation of the Petroleum Exporting Countries in 2006.

He became the Amayanabo, or traditional ruler, of Nembe Kingdom in 2008.

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Also, Ikem-Obih was a former Chief Operating Officer, Downstream of the NNPC and Rabiu a former Group Executive Director at the corporation.

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Energy

NNPC spends N535.9 billion on subsidy, FAAC in Q1 2020

Petrol subsidy gulped N101.65bn in the first three months of the year.

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Mele Kyari, NNPC, NNPC spends estimated N33.60/litre on petrol subsidy, NNPC vows to be transparent, set to publish details of petroleum product supplies , OML 119: NNPC record 14 bids for development of oil well, This NNPC initiative aims to solve the problem of tanker explosions , Fluctuations of oil price threatening Nigerian content development — NNPC , Lagos pipeline leak contains water, not petrol- NNPC

The Nigerian National Petroleum Corporation (NNPC) spent over N535.9 billion on subsidy and Federation Account Allocation Committee in the first quarter of 2020.

This was disclosed by the corporation in its Monthly Financial and Operations March 2020 report.

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The report revealed that while the petrol subsidy gulped N101.65bn in the first three months of the year, the sum of N434.25 billion was paid to FAAC within the same period.

The national oil firm described the subsidy spending as under-recovery. This means that Nigeria is incurring an additional cost in subsidizing the price of petrol to make sure it falls within the regulated price of N143.80 per litre, even though the real market price is above this regulated rate.

READ ALSO: NNPC’s subsidiary to ship crude again after years of inactivity

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It had consistently argued that only the National Assembly was empowered to approve petrol subsidy, despite the fact that NNPC’s monthly under-recoveries were due to subsidy on petrol.

According to the report, while the corporation spent N43.31bn as subsidy on petrol in January 2020, in February, it incurred N20.68bn as under-recovery, and N37.66 billion in March as subsidy.

However, subsidy was halted in March 2020 by the Petroleum Products Pricing Regulatory Agency after the crash in global crude oil prices.

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The development, according to the PPPRA, led to the end of petrol subsidy, as the agency stated that petrol price would be adjusted in accordance to global oil prices.

READ ALSO: 2021 Budget: FG projects spending plan of N11.86 trillion and deficit of N5.16 trillio

The PPPRA has adjusted petrol price about three times since after the first adjustment in March this year.

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The NNPC report further stated that the corporation paid N434.25bn to the Federation Account Allocation Committee during the quarter under review.

It stated that in January, a total of N138.57bn was remitted to FAAC, while the committee received N148.53bn from the corporation in February 2020.

The NNPC said it paid N147.15bn to FAAC in March this year.

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Energy

COVID-19: Minister of Power instructs contractors back to site as lockdown eases

The power minister gave the directive during an inspection visit to the new Gagarawa 2.

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Minister of power, Second largest hydropower project in Africa to finally take off after settlement of legal dispute

The Minister of Power, Sale Mamman, has asked all contractors handling power projects across the country to return back to project sites following the gradual relaxation of the lockdown by the Federal Government, due to the coronavirus pandemic.

The directive from the minister was contained in a press statement by the Special Adviser to the Minister on Media and Communications, Aaron Artimas, on Sunday, July 12, 2020, in Abuja.

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The power minister gave the directive during an inspection visit to the new Gagarawa 2 by 60 Mega Volt Amp (MVA) 132/33 Kilo Volt Sub-station being constructed by the Transmission Company of Nigeria (TCN) in Jigawa.

Mamman, lamented the negative impact of the coronavirus pandemic on the power sector, pointing out that the sector was among the worst affected with the entire value chain directly or indirectly counting losses.

READ MORE: How Geregu Power became one of the best performing power plants in Nigeria – Akin Akinfemiwa

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The Minister in the statement said, ‘’I can tell you that the impact of the pandemic is huge in the power sector as a real service provider. We, however, have joined the government effort to restart the economy with the easing of the lockdown and opening of the interstate road.’’

“I direct all contractors handling power projects to return to sites and work assiduously to recover from the losses recorded during this lockdown,” he said.

Mamman said the Gagarawa Sub-station project would boost power supply in over 7 local government areas including an industrial area.

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On his part, the Jigawa State Governor, Abubakar Badaru, who was part of the inspection team, commended the power minister’s effort at ensuring completion of these projects that have been on for over 20 years.

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The News agency of Nigeria (NAN), reports that the sub-station is 99% completed and has been energized.

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The acting Managing Director of TCN, Suleiman Abdulaziz, who was also part of the inspection asked for speedy completion of similar sub-station across the country.

 

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