Seplat Energy PLC on Tuesday announced the completed conversion of certain onshore assets to the Petroleum Industry Act fiscal regime.
Also, Seplat announced on Monday that a would-be independent non-executive will no longer be joining the firm, and has instead accepted a chief executive appointment with a Nigerian regulator.
The Nigeria-focused energy supplier said its subsidiaries, Seplat West Ltd and Seplat East Onshore Ltd, have converted their operated onshore assets to the PIA regime, which replaced the Petroleum Profit Tax regime in 2021 and changed the administration and payment of taxes, fees and levies relating to Nigeria’s petroleum industry.
‘The PIA supports increased investment, production growth, and improved operational efficiency, all aligned with Seplat’s strategy,’ the company said.
The converted assets were formerly held under oil mining leases 4, 38, 41 and 53. In the first nine months of this year, Seplat said these OMLs averaged working interest production of 42,591 barrels of oil equivalent per day or around 31% of Seplat’s total production.
Seplat and its joint venture partners have now completed all technical and regulatory requirements with the Nigerian Upstream Petroleum Regulatory Commission, following the execution of conversion contracts complying with the PIA in early 2023, the company said.
Seplat added that new petroleum mining lease and petroleum prospecting license numbers have been issued, and that it expects operations under the PIA to start from January 1.
‘Conversion to the PIA fiscal regime has been an important focus for Seplat and we are delighted to have delivered, along with our respective JV partners, the conversion of our onshore operated assets to the PIA regime within the timeline outlined at our recent Capital Markets Day,’ Chief Executive Officer Roger Brown commented.
He continued: ‘We recognise the enhanced value creation opportunities that we can benefit from, post conversion. PIA conversion was factored into our recent medium-term guidance and lays a path to improved profitability and cashflow margins in our onshore business.’
Seplat said it continues to target the conversion of its offshore assets to the PIA by 2027.
Also, on Monday, Seplat announced that Saidu Aliyu Mohammed, who it named last week as an incoming independent non-executive director with effect from January 1, has now withdrawn his acceptance of the appointment.
Mohammed, Seplat said, has been appointed by the Nigerian government as CEO of Nigerian Midstream & Downstream Petroleum Regulatory Authority. Consequently, he will no longer be joining Seplat’s board ‘due to the resulting conflict of interest’.
‘The company congratulates Engineer Mohammed on his appointment and fully supports this national assignment,’ Seplat said. ‘We acknowledge the honour of serving in such a capacity and believe his appointment will bring valuable contributions to the industry.’
Seplat Energy shares were 3.6% higher at 259.90 pence in London at around midday on Tuesday.
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