Seplat Petroleum Development Company Plc, a Nigerian indigenous oil and gas company dual listed on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), has announced the completion of transfer of the business activities and assets of Oil Mining Leases (OMLs) 4, 38 and 41 from the Holding Company to its wholly owned Subsidiary Seplat West Limited.
The transfer is effective January 1, 2020, following regulatory and partner approvals, the firm said in a filing on the NSE. This Intra-Group transfer had 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 Group commercially operates.
Therefore, the operatorship of the asset remains with Seplat under the Joint Operating Agreement (“JOA”), as the transfer to an affiliate under the terms of the JOA is permitted.
Seplat now has 7 Subsidiaries
The transfer of OMLs 4, 38 and 41 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 Group is consistent with 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.
The outcome of the transfer is not expected to diminish shareholder value in and returns as a listed company. The transfer is also not expected to impact the ratings of the Group.