Intra-Group transfer of OMLs from Seplat Petroleum

RNS Number : 4092Q

Seplat Petroleum Development Co PLC

18 June 2020

 

Seplat Petroleum Development Company Plc

INTRA-GROUP TRANSFER OF OMLS 4, 38 AND 41 FROM SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC ("THE COMPANY" OR "SEPLAT PLC" OR "SEPLAT" OR  "THE HOLDING COMPANY") TO SEPLAT WEST LIMITED ("THE SUBSIDIARY")

Lagos and London - June 18, 2020: 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.

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.

The outcome of the transfer will not, in anyway, result in loss of tax revenue to the Government or an extinguishment of liabilities. Similarly, it will not diminish shareholder value in (and returns from) Seplat as a listed company.

Following discussions with the credit ratings agencies, the transfer is not expected to impact the ratings of the Group.

This announcement is made in compliance with Rule 17.6 of the NSE Issuers Rule.

Enquiries

Seplat Petroleum Development Company Plc
Roger Brown, CFO	[phone]
Chioma Nwachuku, GM External Affairs and Communications	[phone]
Edith Onwuchekwa, Company Secretary
FTI Consulting
Ben Brewerton / Sara Powell	[phone]
	[e-mail]

Notes to editors

Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange ("LSE") (LSE:SEPL) and Nigerian Stock Exchange ("NSE") (NSE:SEPLAT). Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds.  For further information please refer to the company website, http://seplatpetroleum.com/

 

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