22 April 2024
Seplat
Energy PLC ("Seplat" or "the Company")
Publication of 2023 Annual Report and Notice of AGM
Seplat Energy PLC confirms it has
today published its Annual Report & Accounts for the year ended
31 December 2023. In the report we have adopted for the first time
and ahead of requirement, the IFRS Sustainability Standards,
improving the level of non-financial disclosures. We also publish
the notice of the Company's eleventh Annual General Meeting ("AGM")
and forms of proxy. The Company will hold its AGM at 11:00am
(WAT) on Thursday, 16 May 2024 virtually. The virtual meeting link for the AGM is https://www.seplatenergy.com/agm-2024/
In accordance with Listing Rule
14.3.6 copies of the Company's Annual Report and Accounts for the
year ended 31 December 2023, the Notice of AGM and proxy forms have
also been submitted to the FCA for publication through the document
viewing facility of the National Storage Mechanism and will shortly
be available for inspection at
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
In accordance with Disclosure
Guidance and Transparency Rule ("DTR") 6.3.5R(3), copies are
available on the Company's website, https://www.seplatenergy.com
The Company's audited financial
statements and extracts of the management report were included in
the Company's Final Results announcement on 29 February 2024.
That information, together with the Appendices to this
announcement, which contains the following additional information
that has been extracted from the 2023 Annual Report, constitutes
the material required for the purposes of compliance with DTR 6.3.5
only:
· the
Directors' Responsibilities Statement;
· a
description of principal risks and uncertainties that the Company
faces; and
· related
party transactions.
This announcement should be read in
conjunction with and is not a substitute for reading the full 2023
Annual Report. Page and note references in the text below
refer to page numbers and notes in the 2023 Annual Report and terms
defined in that document have the same meanings in these
extracts.
Enquiries:
|
Seplat Energy Plc
|
|
|
Emeka
Onwuka, Chief Financial Officer
|
+234 1 277
0400
|
|
Eleanor
Adaralegbe, Chief Financial Officer, Designate
|
|
|
James
Thompson, Head of Investor Relations
|
ir@seplatenergy.com
|
|
Edith
Onwuchekwa, Director, Legal & Company Secretary
|
|
|
Chioma Afe,
Director External Affairs & Social Performance
|
|
|
FTI Consulting
|
|
|
Ben
Brewerton / Christopher Laing
|
+44 203 727 1000
seplatenergy@fticonsulting.com
|
|
Citigroup Global Markets Limited
|
|
|
Tom Reid /
Peter Catterall
|
+44 207 986 4000
|
|
Investec Bank plc
|
|
|
Chris Sim /
Charles Craven / Jarrett Silver
|
+44 207 597 4000
|
About Seplat Energy
Seplat Energy PLC (Seplat) is
Nigeria's leading indigenous energy company. Listed on the Nigerian
Exchange Limited (NGX: SEPLAT) and the Main Market of the London
Stock Exchange (LSE: SEPL), we are pursuing a Nigeria-focused
growth strategy in oil and gas, as well as developing a Power &
New Energy business to lead Nigeria's energy transition.
For further information please refer
to our website, https://seplatenergy.com/
Appendices
Appendix A: Statement of Directors'
responsibilities
The following Statement of
Directors' responsibilities is extracted from the 2023 Annual
Report and Accounts (page 167).
The Companies and Allied Matters
Act, 2020, requires the Directors to prepare financial
statements for each financial year that give a true and fair view
of the financial position of the Group at the end of the year and
of its profit or loss. The responsibilities include ensuring that
the Group:
1) keeps proper accounting records
that disclose, with reasonable accuracy, the financial position of
the Group and comply with the requirements of the Companies and
Allied Matters Act, 2020;
2) establishes adequate internal
controls to safeguard its assets and to prevent and detect
fraud and other irregularities; and
3) prepares its financial statements
using suitable accounting policies supported by reasonable and
prudent judgements and estimates and are consistently
applied.
The Directors accept responsibility
for the annual financial statements, which have been prepared using
appropriate accounting policies supported by reasonable and prudent
judgements and estimates, in conformity with International
Financial Reporting Standards (IFRS), the requirements of the
Companies and Allied Matters Act, 2020 and Financial Reporting
Council of Nigeria Act, No. 6, 2011.
The Directors are of the opinion
that the financial statements give a true and fair view of the
state of the financial affairs of the Group and of its financial
performance and cash flows for the year. The Directors further
accept responsibility for the maintenance of accounting records
that may be relied upon in the preparation of financial statements,
as well as adequate systems of internal financial
control.
Nothing has come to the attention of
the Directors to indicate that the Group will not remain a
going concern for at least 12 months from the date of this
statement.
Signed on behalf of the Directors
by:
B. Omiyi
R.T.
Brown
Chairman
Chief Executive Officer
FRC/2016/IODN/00000014093
FRC/2014/
PRO/DIR/003/00000017939
29 February
2024
29 February 2024
Appendix B: Principal risks and
uncertainties
The following principal risks and
uncertainties table is extracted from the 2023 Annual Report and
Accounts (pages 79 to 83).
The implementation of our strategy
can be hindered by various risks and uncertainties. The risks that
the Board considers most significant are described here.
|
Operational risks
|
|
|
|
Risk:
|
|
Field operations and project deliverability
|
|
Mitigation:
|
Focus on risk management at planning
phase and mitigation plans activated. Compulsory 'peer-to-peer'
review for high-value projects and better project management
techniques. Protracted land acquisition, preparation and
rig startup have been contributory factors which have received
focused attention and significant process improvements and improved
communications with JV partner and approving regulators to
mitigate
delays. Use of smart/intelligent wells to improve recovery and
improved
rig performance monitoring and reporting to manage Non
Productive
Times (NPTs).
|
|
Definition:
|
|
Failure to manage operational
activities in line with planned expectations can lead to production
misses, project delays and cost overruns, high production costs and
earlier than expected field decommissioning.
|
|
|
|
Links:
|
|
KPI/Performance metric
Net working interest
production
Operating costs per boe
|
|
Trend:
|
Steady. We continue to redefine our
project management approach for improved speed of delivery and
efficiency; Aqcuired the ISO 55001 Asset Management System
certification for Asset Integrity, successfully preserved the
certification by passing two follow-up surveillance Audits,
consolidate performance across board, maximize production, maintain
a strong balance sheet, and strategically position the company for
future growth.
|
|
Strategy
|
3/4/5
|
|
Material issues
|
1/2/3/4/5/6/8/9/11
|
|
Assessment
|
High
|
|
Risk:
|
|
Third party infrastructure downtime
|
|
Mitigation:
|
Amukpe to Escravos pipeline (AEP)
since commissioning in Q3 2022
has continued to compliment the Trans Forcados Pipeline in the
event
of a shutdown of the latter. The company continues to explore other
export options via barging and crude trucking as a back-up option
in extreme cases. All associated Upgrades of existing Amukpe
Flowstation & LTF Facilities which were embedded in the Amukpe
LTF Upgrade Project Scope shall
be individually reviewed and progressed (if necessary) as part of
Amukpe Facility Development.
|
|
Definition:
|
|
An over-reliance on third party
operated transportation infrastructure can expose the Company to
extended period of production being shut-in.
|
|
|
|
Links:
|
|
KPI/Performance metric
Net working interest
production
Days downtime
EBIT
|
|
Trend:
|
Steady. The Forcados export system
recorded significant downtime during the year - however the AEP
since coming onstream has provided evacuation support for the
business and helped enhance bottom-line liquidity. Risk trend is
kept at steady with the AEP availability providing support in the
event of an outage of the TFP.
|
|
Strategy
|
3/4/5
|
|
Material issues
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2/4/5/6/9
|
|
Assessment
|
Very
high
|
|
Risk:
|
|
HSSE risks
|
|
Mitigation:
|
Deployment of an HSSE Management
System in line with best practices. Monitoring and reporting of
HSSE performance scorecards at management and Board levels. Our
HSSE systems and process are subjected to independent review and
identified improvement initiatives are deployed. Continual focus on
HSSE training and initiatives on incidence prevention. Emergency
Response plan set for any eventuality and comprehensive Incident
Review panels to identify and channel lessons learnt to improvement
activities. Focus on the delivery on projects earmarked to reduce
and or eliminate gas flaring as spelt out under the company's "gas
flares out roadmap" and new energy transition plan.
|
|
Definition:
|
|
Oil and gas activities carry
significant levels of HSSE risks which must be properly managed. As
activity levels continue to increase there is a strong focus on
preventing major environmental (including the emerging Climate
Change - GHG emissions risk), health or safety incidents
|
|
|
|
Links:
|
|
KPI/Performance metric
HSE scorecards
LTIR
TRIR
|
|
Trend:
|
Steady. Though the risk is inherent,
we will continue to deploy our HSSE
risk management in line with best practices and with strong
emphasis
on prevention.
|
|
Strategy
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1/2/3/4/5
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|
Material issues
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2/4/5/6/7/8
|
|
Assessment
|
Very
high
|
|
Operational risks (cont.)
|
|
|
|
Risk:
|
|
Climate-related risks
|
|
Mitigation:
|
The company has identified a number
of projects to deliver on projects earmarked to reduce and or
eliminate routine gas flaring as spelt out under the ""gas flares
out roadmap"; projects include (i) delivery of the LPG projects at
Sapele and Oben, (ii) Installation of booster compressors, and
(iii) the commissioning of the Sapele integrated gas plant
project.
Other mitigation include (1.) seek
alternative options for cleaner energy, (2.) Participate in all
industry discussions and initiatives aimed at the introduction and
deployment of Carbon-emissions trading schemes in a developing
carbon-trading oil and gas economy.
|
|
Definition:
|
|
IFRS S2 defines climate risk as the
potential negative effects of climate change on an entity. These
risks are categorised as climate-related physical risks and climate
related transition risks.
|
|
|
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Links:
|
|
KPI/Performance metric
HSE scorecards
LTIR
TRIR
|
|
Trend:
|
Steady. The risk trend is being kept
at steady following the company's focus continued drive and
commitment to deliver all key projects towards reducing and or
eliminating routine gas flaring as spelt out under the ""gas flares
our road map. Additionally, the company has developed climate
change and sustainability/ESG policies.
|
|
Strategy
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1/2/3/4/5/6
|
|
Material issues
|
1/2/3/4/5/6/9/10/11
|
|
Assessment
|
Very
high
|
|
Risk:
|
|
Sustaining Exploration and Appraisal (E&A)
programme
|
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Mitigation:
|
Strict compliance with reservoir
management guidelines. Building internal capacity with skilled
sub-surface expertise. Drill a minimum of two exploration wells, as
well as continuous M&A work to secure available opportunities
at the right price
|
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Definition:
|
|
Exploration and appraisal activities
carry significant levels of subsurface risk. Sustained E&A
drilling failure will impact the Company's ability to organically
replace reserves and production.
|
|
|
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Links:
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KPI/Performance metric
Reserve replacement
|
|
Trend:
|
Steady. High grading our exploration
portfolio through a thorough prospect screening exercise. In the
near term, plan is to commence exploration drilling campaign in the
West.
|
|
Strategy
|
4
|
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Material issues
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1/2/3/7/9/11
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|
Assessment
|
Very
high
|
|
External risks
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|
|
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Risk:
|
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Niger Delta stability and security
|
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Mitigation:
|
The Company, working with other
industry players in the region, continue
to put pressure on government to find a lasting solution to Niger
Delta restiveness and the current security measures put in place by
the facility operators, consolidated with government's strategy of
dialogue with stakeholders in the region seems to be
working.
|
|
Definition:
|
|
Seplat Energy's core operations are
located in the Niger Delta region of Nigeria and that comes with
significant risks. Historically, the Niger Delta has always been a
high-risk environment with security incidents such as kidnappings,
vandalism and criminal attacks on O&G installations.
|
|
|
|
Links:
|
|
KPI/Performance metric
LTIR
TRIR
Security incidents
Operating cashflow
|
|
Trend:
|
Steady. Efforts by the Govt and
industry pressure groups, aimed at enhancing security in the region
seems to be paying off as the business recorded zero occurrence in
militant attacks, similar to the previous year 2022. Our monitoring
of the response plans/mitigation actions, remains top
notch.
|
|
Strategy
|
1/2/3/4/5
|
|
Material issues
|
1/2/3/4/5/6/7/9/10/11
|
|
Assessment
|
Very
high
|
|
Risk:
|
|
Stakeholder management relationships
|
|
Mitigation:
|
Ensure consistent delivery of CSR
Initiatives (as well as full compliance with the terms of the GMOU)
across all operational areas. Sustain local content development
with priority to community contractors. Tailored CSR programmes,
capacity building and infrastructure developments with the host
communities. Organisational focus and clear strategy to deliver
shareholder value pursued by the Board and management.
Implementation of the new PIA (Petroleum industry Act) - inclusion
of impacted communities as a driver for annulling community
agitation from our immediate host communities (GMOU vs PIA).
Corporate governance, transparency and proactiveness in dealings
with regulators and JV partners.
|
|
Definition:
|
|
Failure to manage stakeholders can
result in business disruptions and interference. The Company
prioritises the effective management of relationships with all
stakeholders including host communities, JV partners, government,
regulatory bodies and shareholders.
|
|
|
|
Links:
|
|
KPI/Performance metric
Net working interest
production
LTIR
TRIR
Host community incidences
|
|
Trend:
|
Steady. We continue to enjoy good
working relations with all stakeholders
of the business.
|
|
Strategy
|
1/2/3/4/5
|
|
Material issues
|
1/2/3/4/5/6/7/8/9
|
|
Assessment
|
Very
high
|
|
External risks (cont.)
|
|
|
|
Risk:
|
|
Geo-political risk
|
|
Mitigation:
|
Scenarios and response options plan
set. Crisis management team in place for high alert political
periods. Continue to partner/network with security stakeholders and
share intelligence regarding security. Business continuity plans
actioned in light of current geo-political situation.
|
|
Definition:
|
|
Nigeria has at times in its history
faced political uncertainties and threats such as terrorism aimed
at de-stabilising and undermining the orderly and effective rule of
central government.
|
|
|
|
Links:
|
|
KPI/Performance metric
Occurrences of civil unrest and
terrorism
|
|
Trend:
|
Steady. During the year 2023, the
company recorded no incidents of terrorism and secessionist
agitations. As a mitigation strategy, the company continued to
monitor Niger Delta geo-political developments and issued regular
reports to management, as well as partnered with security
stakeholders in the sharing of intelligence regarding
security.
|
|
Strategy
|
1/2/3/4/5
|
|
Material issues
|
1/11
|
|
Assessment
|
High
|
|
Financial risks
|
|
|
|
Risk:
|
|
Oil
price volatility
|
|
Mitigation:
|
Hedging continues to be our price
risk management tool. We conduct price sensitisation on project
economics and enforce cost discipline for capital projects
sanctioning. Aggressive focus on cost reduction.
|
|
Definition:
|
|
Oil prices have exhibited a history
of volatility and can fluctuate sharply in line with external
factors.
|
|
|
|
Links:
|
|
KPI/Performance metric
Realised oil price
Operating cashflow
|
|
Trend:
|
Steady. Seplat's risk management
strategy is to protect itself against adverse
oil price movements through our oil price hedging policy, which
targets hedging c. 6 months in advance via out-of-the-money puts
(i.e., "disaster protection insurance"). In the year 2023, we kept
focus on our price risk management policy to protect the company's
cash flow stream from downside scenarios. We will also continue to
take hedge positions and apply cost reduction strategies. Hedging
has been important to several stakeholders, including our bond
investors, our banks and our rating agencies.
|
|
Strategy
|
3/4
|
|
Material issues
|
1
|
|
Assessment
|
High
|
|
Risk:
|
|
Changes to tax status and legislation
|
|
Mitigation:
|
Perform evaluation of business plan
and performance metrics exclusive
of tax benefits. Project economics were conducted to ascertain the
impact
of the new PIA on the company's bottom line. All Impact
assessment
of potential tax legislation is monitored at the Board
level.
|
|
Definition:
|
|
If the tax regime/legislation under
which the Company operates its assets were to change (e.g. new PIA
tax regime), profitability may be impacted.
|
|
|
|
Links:
|
|
KPI/Performance metric
Effective tax rate
Tax status
|
|
Trend:
|
Steady. The company is participating
in all ongoing engagement with stakeholders including community
leadership for a better understanding/implementation of the PIA
mechanism.
|
|
Strategy
|
3
|
|
Material issues
|
1/2/3/4/5/6/9/10/11
|
|
Assessment
|
Medium
|
|
Risk:
|
|
Availability of capital
|
|
Mitigation:
|
Emphasis on compliance with
requirements of the JV operating
agreement for effective/strict JV partner concurrence. Board
review
and approval of financial strategy and debt portfolio
management
with strong banking relationships.
|
|
Definition:
|
|
The oil and gas industry is highly
capital intensive. Significant amounts of capital are required to
continue development activities and fund M&A. Non funding of
cashcalls by JV partners impacts activities and
liquidity.
|
|
|
|
Links:
|
|
KPI/Performance metric
JV receivables
CAPEX
New M&A activities
|
|
Trend:
|
Decreasing. JV partners continues to
remain current in paying cash calls.
|
|
Strategy
|
3/4/5/6
|
|
Material issues
|
1/2/4/5/6/10/11
|
|
Assessment
|
Very
high
|
|
Financial risks (cont.)
|
|
|
|
Risk:
|
|
Cost control risk
|
|
Mitigation:
|
Comprehensive budgeting process
approved by the joint venture partner and the Board. Clear cost
management targets. Grading of portfolio opportunities and project
ranking for capital allocation. Focus on reducing drilling costs at
well design phase. Cost monitoring and periodic reporting. Focus on
effective contracting strategies for cost reduction.
|
|
Definition:
|
|
Cost reduction remains central to
the Company's current operating strategy. High operating cost and
ineffective capital cost control negatively impacts operating cash
flows and profitability.
|
|
|
|
Links:
|
|
KPI/Performance metric
Operating cost per boe
EBIT
CAPEX
Well costs
|
|
Trend:
|
Steady. Cost discipline remains key
focus of the business
|
|
Strategy
|
3/4/5
|
|
Material issues
|
1/3/4/5/6/7/9/10/11
|
|
Assessment
|
High
|
|
Risk:
|
|
Liquidity
|
|
Mitigation:
|
Manage liquidity risk by ensuring
that sufficient funds are available to meet commitments as they
fall due. Uses both long-term and short-term cash
flow projections to monitor funding requirements for activities and
to ensure there are sufficient cash resources to meet operational
needs. Cash flow projections take into consideration the Company's
debts and covenant compliance. Surplus cash held is transferred to
the treasury department which invests in interest bearing current
accounts, time deposits and money market deposits.
|
|
Definition:
|
|
Liquidity risk is the risk that the
Company will
not be able to meet its financial obligations as
they fall due.
|
|
|
|
Links:
|
|
KPI/Performance metric
Operating cashflow
CAPEX
|
|
Trend:
|
Decreasing. The combination of the
AEP and the Trans-Forcados Pipeline assisted Seplat's liquidity
position significantly in the year. We manage liquidity risk by
ensuring that sufficient funds are available to meet commitments as
they fall due, using both long-term and short-term cash flow
projections to monitor funding requirements for
activities.
|
|
Strategy
|
3
|
|
Material issues
|
9/10/11
|
|
Assessment
|
Medium
|
|
Risk:
|
|
Foreign exchange risk
|
|
Mitigation:
|
The company has options to manage
its foreign exchange exposure including financial hedge instruments
such as forward exchange contracts.
|
|
Definition:
|
|
The Company is exposed to exchange
rate
risk to the extent that balances and transactions are denominated
in a currency other than the
US dollar.
|
|
|
|
Links:
|
|
KPI/Performance metric
Operating cashflow
CAPEX
|
|
Trend:
|
Rising. Historically, the Company
holds majority of its cash and cash equivalent in US dollar. Gas
contracts are indexed in US dollar. The Federal Govt Policy on FX
resulted in significant exchange rate fluctuations, impacting on
cost of essential commodities in-country.
|
|
Strategy
|
3
|
|
Material issues
|
9/10/11
|
|
Assessment
|
High
|
|
Strategic risks
|
|
|
|
Risk:
|
|
Portfolio concentration risk
|
|
Mitigation:
|
Focus on portfolio expansion
strategy from the Board level to diversify current portfolio.
Integrated long-term planning on crude oil, gas and other
renewables business.
|
|
Definition:
|
|
High dependency on a concentrated
portfolio of producing blocks and limited number of wells can leave
the Company more susceptible to declining long-term growth and
reserves depletion.
|
|
|
|
Links:
|
|
KPI/Performance metric
Successful execution of new
acquisition and farm-in opportunities.
|
|
Trend:
|
Steady. The company strategic
direction is targeted at accessing oil and gas reserves and
resources to support growth in Pillar2 (midstream) and Pillar 3
(new energy)
|
|
Strategy
|
3/4/5/6
|
|
Material issues
|
6/10/11
|
|
Assessment
|
Very
high
|
|
Strategic risks (cont.)
|
|
|
|
Risk:
|
|
Merger & acquisition (M&A) risk
|
|
Mitigation:
|
New business development unit is
always looking for the right opportunities for Seplat. Decision
review board (EXCOM) process in place to ensure deals are properly
vetted and proper due diligence is done for new opportunities:
A Structured ExCom is now in place. The Decision Review board (DRB)
process is in place to ensure deals are properly vetted and
adequate due diligence done on new opportunities. The ExCom ensures
the commercial, structural, KYC and integration risks are fully
considered and addressed with mitigation plans approved and in
place prior to deal closing.
|
|
Definition:
|
|
Growth through M&A activities is
part of the Seplat's strategy to pursue a focused acquisition and
farm-in. M&A deals and transactions come with significant risk
including structural, commercial and integration risks. There is
also
the risk of non achievement of acquisition targets due to highly
competitive landscape.
|
|
|
|
Links:
|
|
KPI/Performance metric
Successful execution of new
acquisition and farm-in opportunities.
|
|
Trend:
|
Steady. We have a robust process in
place to vet opportunities and deals.
Risk trends are steady following an ongoing strategy to acquire
more strategic assets. M&A landscape remains
competitive.
|
|
Strategy
|
3/4/5/6
|
|
Material issues
|
5/6/10/11
|
|
Assessment
|
Very
high
|
|
Risk:
|
|
Bribery and corruption risk
|
|
Mitigation:
|
Extensive training on anti-bribery
and corruption. Embedding corporate governance principles with key
focus on areas of the business which may
be more susceptible to corruption such as the contracting and
procurement process. Processes exist to guide dealings with public
officials.
|
|
Definition:
|
|
Bribery and corruption presents a
risk throughout the global oil and gas industry and represents an
ongoing risk to any oil and gas company.
|
|
|
|
Links:
|
|
KPI/Performance metric
Whistle blowing reports
Number of disciplinary
cases.
|
|
Trend:
|
Steady. Our geographical location
continues to be susceptible to corruption. However, the risk trend
is kept at decreasing following lower cases of whistle blowing
recorded during the year.
|
|
Strategy
|
3
|
|
Material issues
|
6/7/9/10/11
|
|
Assessment
|
High
|
|
Risk:
|
|
Fraudulent activity risk
|
|
Mitigation:
|
Extensive whistleblowing campaign.
Continuous monitoring and improvement of the system of internal
controls by all lines of defence with strong internal audit
activity. Automation of processes where possible to reduce manual
intervention.
|
|
Definition:
|
|
Fraudulent activity presents a risk
throughout the global energy industry and represents an ongoing
risk to any energy company.
|
|
|
|
Links:
|
|
KPI/Performance metric
Number of reported cases
|
|
Trend:
|
Decreasing. Risk is kept at High and
the Company continues to maintain a zero tolerance
policy.
|
|
Strategy
|
3
|
|
Material issues
|
6/7/8/9/10
|
|
Assessment
|
High
|
|
Risk:
|
|
Information security risk
|
|
Mitigation:
|
We monitor and regularly upgrade the
Company's information technology and security systems. The Company
has a clearly defined employee user policy and control of access
rights. Our information security framework and infrastructure have
been externally reviewed in line with requirements of ISO27001. IT
business continuity plan is in place for quick
deployment.
|
|
Definition:
|
|
Potential cyber attacks and
information technology security breaches could result in
loss or compromise of sensitive proprietary information,
communication and IT business continuity disruption across
operations.
|
|
|
|
Links:
|
|
KPI/Performance metric
Information security identification
and containment reports
|
|
Trend:
|
Steady. While cyber security
continues to hold international attention, there has not been
material IT breach on our operations. However, giving the current
norm of remote working, the company has taken steps to ensure
adequate protection/defence mechanisms are in place to avert any
external cyber attacks.
|
|
Strategy
|
3
|
|
Material issues
|
7/9/10/11
|
|
Assessment
|
High
|
Appendix C: Related Party
Transactions
The following Related party
relationships and transactions are extracted from the 2023 Annual
Report and Accounts (page 250 and 287)
37. Related party relationships and
transactions
The Group is controlled by Seplat
Energy Plc (the 'Parent Company'). The Parent Company is owned
6.43% either directly or by entities controlled by A.B.C Orjiako
(SPDCL (BVI)) and members of his family. The remaining shares in
the Parent Company are widely held.
The goods and services provided by
the related parties are disclosed below.
i.
Shareholders of the Parent Company
Shebah Petroleum Development Company
Limited SPDCL (BVI): The former Chairman of Seplat is a director
and shareholder of SPDCL (BVI).
The company provided consulting
services to Seplat. Services provided to the Group during the
period amounted to nil (2022: $916.5 thousand, ₦409.8 million).
Payables amounted to nil in the current period.
Amaze Limited: The former Chairman
of Seplat is a director and shareholder of Amaze Ltd. The company
provided consulting services to Seplat. Services provided to the
Group during the period amounted to $587.4 thousand, ₦528.3
million.
ii.
Entities controlled by Directors of the Company
Ubosi Eleh and Company (controlled
by Director Ernest Ebi): The Company provided a leasehold property
to Seplat. The amount during the period amounted to nil (2022:
$53.7 thousand, ₦24 million).