Nigeris’s president Muhammadu Buhari, who also doubles as minister of petroleum resources Thursday gave his consent for a 20-year renewal of Seplat Petroleum Development Company Plc (SPDC) OMLs 4, 38 and 41.
Seplat, in a statement filed with the Nigerian Stock Exchange (NSE) noted that the new expiry date of the license is 21 October 2038.
SPDC is an oil and gas company listed on both the Nigeria Stock Exchange and London Stock Exchange. It holds a 45 percent working interest in OMLs 4, 38 and 41.
The company noted that “in the first nine months of 2018 production from the licenses accounted for 92 percent of Seplat’s total oil production and 100 percent of Seplat’s gas production.”
In connection with the license renewal, Seplat said it has paid in full a renewal bonus of $25.9 million, thus ensuring all conditions for license renewal have been met.
“The Company is now working with the Department of Petroleum Resources (DPR) to obtain the updated title deeds in connection with the renewal,” the statement added.
Commenting on the license renewal Austin Avuru, Seplat’s CEO, said: “We are delighted to have concluded the early renewal of our core producing licenses, OMLs 4, 38 and 41. With the extension of the license to 2038 secured, we can now invest with confidence long into the future as we seek to further realise the full oil and gas potential of the licenses and continue to deliver value to all of our stakeholders”.
Seplat’s shares however closed at N652.70 observing no change from previous closing price as at the end of Thursday’s trade