SEPLAT PETROLEUM TRANSFORMS TO FULL-FLEDGED HOLDING COMPANY
Seplat Petroleum Development Company Plc, has transformed into a full-fledged holding company with all its assets managed by its wholly-owned subsidiaries.
The company announced 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.
The Company Secretary/Chief Governance Compliance Officer, Seplat Petroleum Development, Mrs. Edith Onwuchekwa in a notice to Nigerian Stock Exchange (NSE) said the holding company was possible following regulatory and partner approvals, the transfer is effective January 1, 2020.
In her signed statement, “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.”
The company explained that rationale for the transfer of assets that include, the transfer of OMLs 4, 38 and 41 out of Seplat Plc into Seplat West results in seven wholly owned subsidiaries – Newton Energy Limited;
The company explained added that, “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 extinguish 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.”