Seplat Petroleum Development Company, has disclosed that it paid a total of $564.1 million to various arms of the Nigerian government in the form of fees, taxes and royalties in the 2020 financial year.
The payments made by Seplat the government arose from activities involving the exploration, prospection, discovery, development and extraction of minerals, gas processing, oil and natural gas deposits and or other materials.
A breakdown shows that Seplat made $111.63 million in payments to the Department of Petroleum Resources (DPR) as royalties for oil mining lease (OML) 4, 38, and 41, 40, 53 and 56 and a further $18.37 million was paid as fees to DPR.
Royalty payments are for the rights to extract oil and gas resources, typically at a set percentage of revenue less any deductions that may be taken.
The Nigerian National Petroleum Corporations (NNPC) was paid $389.5 million as production entitlement by Seplat, the Nigeria export supervision scheme $579,361, the Niger Delta Development Commission $17.93 million, Nigerian Content Development and Monitoring Board $4.82 million, and Federal Inland Revenue Service $21.23 million.
The information was released to comply with the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom and was prepared in accordance with Directive 2013/34/EU (the EU Accounting Directive (2013).
Seplat Petroleum Development Company Plc is a Nigerian indigenous energy company listed on the Nigerian Stock Exchange (NSE: SEPLAT) and the Main Market of the London Stock Exchange (LSE: SEPL).
Seplat is pursuing a Nigeria-focused growth strategy and is positioned to participate in future asset divestments by international oil companies, farm-in opportunities, and future licensing rounds.
The Company is a leading supplier of gas to the domestic power generation market.