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Seplat Petroleum completes inter-group transfer of OMLS 4, 38 and 41 to wholly owned subsidiary

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Seplat

THUR, JUN 18 2020-theG&BJournal- Seplat Petroleum Development Company  Plc, have completed the transfer of the business activities and assets of OMLs 4, 38 and 41 from the Seplat Petroleum Development Company Plc, the Holding Company, to its wholly owned Subsidiary, Seplat West Limited.

The Nigerian indigenous oil and gas company dual-listed on the Nigerian Stock Exchange and London Stock Exchange said today, that the 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.

‘’Following regulatory and partner approvals, the transfer is effective January 1, 2020,’’ Seplat management said.

According to Seplat’s announcement on the deal made in compliance with Rule 17.6 of the Nigerian Stock Exchange (NSE) Issuers Rule, 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,’’ and following discussions with the credit ratings agencies, the transfer is not expected to impact the ratings of the Group.

The transfer of OMLs 4, 38 and 41 out of Seplat Plc into Seplat West results in seven wholly owned subsidiaries with no operating oil and gas assets directly held in the Holding Company. The companies are 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,

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,’’ the company said.

‘’This is also expected to result in a simplified management and reporting framework for the Seplat Group.’’

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