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Seplat witnesses a profit jumps 9-month by 144% to N34 billion amid oil price boom

by Radarr Africa
written by Radarr Africa

Nigeria’s biggest quoted oil and gas company Seplat Energy Thursday posted a net profit of N34 billion ($618.6 million) for the year to September, 144 per cent stronger than the figure reported a year ago in a period during which crude prices averaged $108.3.

Revenue grew to N258.7 billion from N182.7 billion, 86.5 per cent of that contributed by crude oil sales and the rest by gas.

Yet, the quarter from July through September was a kick in the teeth for Seplat, given that turnover shrivelled by 36.5 per cent as operations took a battering from damage and theft in a period CEO Roger Brown described as “unusually challenging.”

Seplat is listed on the Nigerian Exchange as on London Exchange.

Cost of sales for the nine months rose 12.5 per cent to N140.2 billion, while general and administrative expenses soared by more than a half to N33.2 billion.

The corporation committed $110.3 million to capex, with earnings before interest, taxes, depreciation and amortisation (EBITDA) climbing 27 per cent to N141.3 billion.

“We remain confident that our transformational acquisition of MPNU will be approved and are working closely with all the relevant stakeholders to achieve a successful outcome for all parties,” Brown said.

“The acquisition will add significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.”

Seplat announced late September it had successfully refinanced its existing $350 million revolving credit facility (RCF) expiring in December 2023, with a new $350 million RCF of a three-year tenor falling due in June 2025.

Profit before tax for the review period scaled up to N77.5 billion, 101 per cent higher than a year earlier. Net profit improved by 143.7 per cent, standing at N33.9 billion.

Seplat said in a separate document seen by PREMIUM TIMES it will pay an interim dividend of US2.5 cents per share to stockholders whose names appear in the register of member as of the close of business on 10 November.

It will bring its total payout so far this year to US7.5 cents per share equivalent to a cumulative dividend of $44.1 million paid for the period January to September.

Source: Premium Times

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AfricaAFRICA NEWSBusinessEnergyNewsNigeriaOil & GasWestern Africa

Seplat denies ExxonMobil deal cancellation, says they have not received notification

by Radarr Africa
written by Radarr Africa

Seplat Energy, on Thursday, said it had not received any official notification from the Federal Government of Nigeria reversing its proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited.

The company also said it was seeking clarification from relevant authorities regarding the claims that the President, Major General Muhammadu Buhari (retd.), who doubles as Minister of Petroleum Resources, had withdrawn his ministerial approval for the deal.

“Seplat Energy has become aware of a news report claiming that ministerial approval of the company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited has been withdrawn,” the oil firm stated in a statement issued by its Chief Financial Officer, Emeka Onwuka.

It added, “Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities.”

The move puts the Presidency on the side of the Nigerian National Petroleum Company Limited which had earlier declined the $1.3bn transaction.

A statement by the Special Adviser to the President on Media and Publicity, Femi Adesina, had announced on Monday that Buhari consented to the acquisition of Exxon Mobil shares by Seplat Energy.

According to the Presidency, Buhari authorised the move in his capacity as Minister of Petroleum Resources as a way to attract Foreign Direct Investment to the country.

This was, however, contested by the Nigerian Upstream Petroleum Regulatory Commission, as the Chief Executive, NUPRC, Gbenga Komolafe, said the regulator would not and did not endorse the transaction.

Reacting to the development on Wednesday, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, stated that Buhari had reversed the decision and that the misunderstanding was because the “agencies involved in (the) decision had not coordinated well among themselves.”

ALSO READ: Buhari reverses approval of Seplat’s acquisition of ExxonMobil asset

Responding to claims on the reversal of ministerial approval, Seplat stated on Thursday that it had not received any official notification on the decision.

The oil firm, however, noted that it “will continue to work with all parties to achieve a successful outcome to the proposed acquisition and will provide an update in due course.”

It said the “announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).”

Source: Punch

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AfricaAFRICA NEWSBusinessEnergyNewsNigeriaOil & GasWestern Africa

NUPRC rejects sale of ExxonMobil’s assets as approved by Buhari

by Radarr Africa
written by Radarr Africa

The Nigerian Upstream Petroleum Regulatory Commission(NUPRC) has rejected the sale of ExxonMobil’s assets to Seplat Energy as approved by President Muhammadu Buhari.

Recall that the President had in a statement on Monday revealed that President Buhari had approved the sale.

According to the statement, Buhari had granted assent to the deal in which Seplat will acquire a 40 per cent stake of ExxonMobil oil assets around Akwa Ibom State.

The statement cited the Petroleum Industry Act, 2021 as an incentive to drive Foreign Direct Investment and raise oil production from the assets.

ALSO READ: Buhari approves Seplat Energy acquisition of $ 1.283bn Mobil assets

But reacting to there development, the NUPRC’s Chief Executive Officer, Engr. Gbenga Komolafe, in a statement on Monday, said the Commission in line with the provisions of the PIA, 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.

Komolafe said: “As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard.

“As such the Commission further affirms that the status quo remains.

“The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector.”

Source: The Eagle Online

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AfricaBusinessEnergyNewsNigeriaOil & GasWestern Africa

Seplat Energy begins commercial injection of crude oil through Amukpe-Escravos pipeline

by Radarr Africa
written by Radarr Africa

Seplat Energy, Nigeria’s leading energy supplier has commenced the commercial injection of crude oil through the new Amukpe-Escravos Pipeline located in Niger Delta.

The company previously depended on the Trans Forcados System route to transport its crude to the export terminal, but often records disruption through vandalism and pipeline maintenance.

In a statement issued on Monday, the company said the new route is expected to plug the holes in the system.

The Amukpe-Escravos pipeline is connected to Seplat Energy’s major assets OML 4, 38 and 41.

According to Seplat, liquid from the pipeline will flow through the Chevron-operated Escravos Terminal, and has the capacity to transport 160,000 barrels of oil per day.

The statement read: “Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, is pleased to announce that it has begun commercial injection of crude oil through the new Amukpe-Escravos Pipeline.

“The 67km mostly underground pipeline is expected to provide a more reliable and secure export route for liquids from Seplat Energy’s major assets OML 4, 38 and 41, connecting them with the Chevron-operated Escravos Terminal. It has a capacity of 160,000 bbl/day, of which the Seplat Energy / NPDC joint venture is entitled to inject 35,000 bbl/day. Dewatering was completed on Friday 29 July and the Site Acceptance Test is now underway with commercial volumes.

ALSO READ: Changan CS15 Crossover SUV arrives Nigerian Market

“Until now, the Company has relied on the Trans Forcados System, which has experienced numerous disruptions in recent years due to pipeline maintenance and vandalism, which have impacted the Company’s revenues.”

Speaking on the project, the company’s Chief Executive Officer, Roger Brown, said: “The commercial launch of the Amukpe-Escravos Pipeline is a significant event for Seplat Energy and for Nigeria, offering a more secure and reliable export route that will assure higher revenues and profitability for Seplat Energy, enabling us to make a larger contribution to Nigeria’s economy.

“We commend the work that has made this possible and appreciate the efforts of our partners and all contractors involved to create this more reliable and secure export route for Nigeria’s oil.”

Source: Ripples Nigeria

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AfricaEnergyNigeriaOil & GasWestern Africa

Seplat Energy announces the resignation of Arunma Oteh as non-executive Director

by Radarr Africa
written by Radarr Africa

Seplat Energy on Thursday in a filing to the capital market, Nigerian Exchange Limited (NGX), announced the resignation of Arunma Oteh as a non-executive Director in the company.

Arunma Oteh, prior to her appointment was a Treasurer and Vice President of the World Bank. She was appointed in August 2020, but will be retiring from her position effective December 31, 2022 as disclosed in the announcement.

Her resignation comes amid a setback faced by Seplat in the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil. The deal is being blocked by the Nigerian government.

The Nigerian National Petroleum Company (NNPC) Limited plans to takeover the asset of MPNU, which is the shallow water business (crude field) jointly owned by the government corporation and ExxonMobil.

ALSO READ: Addax employees embark on strike over anti-labour practices

Despite Seplat stating that the interest of the NNPC doesn’t affect the acquisition deal it has with ExxonMobil, NNPC has gone to court to prevent the transfer of the shares, asset or property of MPNU to Seplat.

Meanwhile, speaking on the resignation of Oteh, Chairman of Seplat Energy, Basil Omiyi, said, “On behalf of the Board, Management and Staff, I would like to thank Ms. Oteh, OON for her immense contributions, strategic drive and the wealth of experience she brought to the Board especially in matters relating to corporate governance.”

He further stated, “Ms. Oteh demonstrated excellent commitment and passion about positioning Seplat Energy as a pacesetter in the global energy transition agenda. We wish her great success in her future endeavours.”

Source: Ripples Nigeria

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BusinessNigeriaOil & Gas

NNPC blocks Exxon Mobil’s asset sale to Seplat

by Radarr Africa
written by Radarr Africa

The Nigerian National Petroleum Company (NNPC) Limited has won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy Plc.

A judge in Abuja granted NNPC an “order of interim injunction” on July 6, 2022, barring Exxon “from completing any divestment” in a unit that ultimately operates four licenses in Nigeria, Blomberg reported on Monday.

The Lagos-based producer, Seplat, had agreed to acquire the United States oil major’s subsidiary for at least $1.28bn in February.

The report stated that NNPC wished to block the transaction and to take over the permits itself.

Bloomberg stated that NNPC sued Mobil Producing Nigeria Unlimited on July 5, 2022, asking the Federal High Court either to order that a dispute had occurred between the parties over preemption rights, or to order them to take the matter to arbitration, quoting a statement from Seplat.

READ ALSO: IOCs to remit N400bn oil debt for July – NNPC

Seplat, which was not party to the lawsuit, said its deal with Exxon was “still valid” and the company “remains confident that the matter will be brought to a proper conclusion in accordance with the law.”

A spokeswoman for Exxon declined to comment, according to Bloomberg, while a spokesman for the NNPC did not respond to a phone call and text message.

The acquisition would give Seplat additional production of about 95,000 barrels of oil equivalent a day from shallow-water assets that Exxon operated in a joint venture with NNPC.

For more than a decade, international oil companies active in Nigeria have been offloading large parts of their portfolio across the country to domestic players, a trend that has recently accelerated.

An order from a Nigerian court had also forced Shell Plc to pause its plans to sell all off its remaining onshore permits in Nigeria.

Source: Punch

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AfricaEnergySouthern Africa

Seplat Energy announces appointment of a new chief operating officer

by Radarr Africa
written by Radarr Africa

On Thursday, Seplat Energy announced its appointment of a new chief operating officer and executive director in person of Samson Chibogwu Ezugworie with effect from July 1.

Mr. Ezugworie has experience in oil and gas spanning more than three decades, the last 25 years of which he spent with Royal Dutch Shell in Nigeria and overseas, according to the company, which is simultaneously listed in Lagos and London.

Roles held at Shell companies in Nigeria before joining Seplat’s board comprise manager geosolutions, general manger development & subsurface as well as manager land asset, a statement issued by Nigeria’s biggest energy company by market value seen by PREMIUM TIMES shows.

Mr Ezugworie also served in the capacity of director in Shell Exploration & Production Africa Limited (SEPA), Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Business Operations Limited (SNBO).

He is a graduate of Geology from University of Nigeria Nsukka, the document posted on the Nigerian Exchange Limited said.

Seplat also announced Effiong Okon, the operations director and an executive director on its board, would be relinquishing the position on July 1. In February 2018, he took office in that capacity and “has since then invested his time, experience and skills in the growth of the company”.

Mr Okon is taking up the role of director New Energy to lead that directorate of the company effective from in a bid to speed up the growth of the new energy business and further Seplat’s blueprint on energy transition.

ALSO READ; Seplat Energy appoints Omiyi to replace Orjiakor as chairman

“The Board is pleased to welcome Mr. Samson (Sam) Chibogwu Ezugworie as the Chief Operating Officer and Executive Director on the Board of Seplat Energy and wishes Mr. Effiong Okon success in his new role as Director New Energy which is a critical one for the future of the Company,” said Chairman Basil Omiyi.

Source: Premium Times

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BusinessEnergyOil & GasWestern Africa

Heir Holding, ND Western offers Shell final offer for $2.3 billion oil assets

by Radarr Africa
written by Radarr Africa

Shell Plc will receive two final bids for its stake in its Nigerian joint venture this week from Tony Elumelu’s Heirs Holdings and local firm ND Western Limited, Bloomberg reported Wednesday, citing people close to the heart of the matter.

The two are scrambling to procure Shell’s three-tenths holding in the JV located in the crude-rich Niger Delta region and offshore fields neighboring it.

Shell will stop welcoming bids on Friday, according to the people who spoke on the condition that their identities will be concealed, given the sensitivity of the subject.

In 2021, oil and gas consultancy research house WooMac estimated Shell’s own slice of the partnership at $2.3 billion based on a long-term oil price of $50 per barrel.

But as Brent now hovers around $121, the value of Shell’s interest is likely to be way higher.

Last year, the oil major said it was willing to divest its interest while noting that its long-term energy transition blueprint is out of tune with the operating environment in Nigeria, where oil installations and pipelines are target of vandals and where crude spills and theft are rife.

Ben van Beurden, Shell’s chief, informed shareholders last month a steep surge in attacks recently has sparked off a near-chaos situation its firm could not handle.

“In the end, we have to concede that this is beyond what we can do,” Mr Beurden said.

According to two people privy to the transaction, possible future costs linked to litigation and environmental liabilities could influence the valuation of Shell’s stake.

Seplat Energy and Sahara Group, who this February Launched non-binding bids for the stake are no longer in contention, the people said.

Exxon Mobil Corp is also walking that path having announced in February it planned to offload its shallow-water operations to Seplat for around $1.3 billion.

Total Energies is also on track to divest its 10 per cent holding in the same JV involving Shell.

Source: Premium Times

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EnergyOil & GasWestern Africa

Seplat Energy appoints Omiyi to replace Orjiakor as chairman

by Radarr Africa
written by Radarr Africa

 Seplat Energy Plc has announced the appointment of Basil Omiyi as its new independent non-executive chairman. Mr. Basil Omiyi replaces A.B.C Orjiakor whose tenure ended Wednesday.

According to a notice published by the Nigerian Exchange on Thursday and seen by PREMIUM TIMES, Seplat also appointed Charles Okeantalam as the senior independent non-executive director of the firm, a role previously held by Mr Omiyi.

The oil and gas firm said the appointment was approved following a unanimous vote by all its directors in compliance with the Companies and Allied Matters Act in Nigeria (“CAMA”).

The appointments will take effect immediately.

Basil Omiyi

Mr Omiyi has sat on Seplat Energy’s board of directors since March 2013 and became the senior independent non-executive director in February 2021.

With over 40 years of experience in the energy industry, he has held senior roles in Nigeria and Europe, including becoming the managing director of Shell Petroleum Development Company of Nigeria in 2004.

He was also the country chairman of Shell Companies, Nigeria, until his retirement in 2009.

He is the independent non-executive chairman of Stanbic IBTC Holdings, the local unit of South Africa’s Standard Bank Group, a post he has held since 2015. In 2011, he was awarded the national honour of Commander of the Order of the Niger for pioneering leadership in Nigeria’s oil and gas

Charles Okeahalam

Okeahalam became a member of the board in March 2013 as an independent non-executive director, and was chair of Seplat Energy’s finance committee as well as a member of the Energy Transition, Remuneration, and Nominations & Governance committees.

He has extensive corporate finance and capital markets expertise in addition to an expansive knowledge of African financial markets, economies and the investment industry.

“He was a co-founder of AGH Capital Group, a private equity and diversified investment holding company based in Johannesburg, with assets in several African countries,” the document said .

Before co-founding AGH Capital Group in 2002, he was a professor of Financial Economics and Banking at the University of the Witwatersrand in Johannesburg.

Other previous roles include advising a number of African central banks and government ministries, the World Bank and the United Nations.

He has held several board positions and is a former non-executive chairman of Heritage Bank Limited, Nigeria.

Okeahalam has served as the non-executive chiarman of the Nigeria Mortgage Refinance Company.

Source: Premium Times

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