Seplat Makes Media Publications

Source: 2/26/2021, Location: Africa

Seplat notes some media coverage alleging improper conduct by the Company. Whilst it is Seplat's policy not to comment on press articles, on this occasion it is deemed necessary to clarify Seplat's position on the contents of the inaccurate media coverage.

Seplat is current on its royalties to the Federal Government of Nigeria, with a record of increased royalties over a decade of successful production. Reference in the media coverage was made to the assets that are held by Seplat in joint venture partnership with the Nigerian Petroleum Development Company Limited (NPDC). These assets are OMLs 4, 38 and 41. In 2018, the President and Honourable Minister of Petroleum Resources approved the 20-year renewal of OMLs 4, 38 and 41 and Seplat satisfied all conditions for the license renewal, including our full payment of US$25.9 Million Renewal Bonus.

OMLs 4, 38 and 41 are amongst our various assets that continue to yield significant revenues for the Federal Government of Nigeria.

Seplat followed the prescribed process for applying for pioneer tax incentive through the Nigerian Investment Promotion Council ("NIPC"), as the government body responsible for investment promotion. At the time of the application, Seplat was aware that, in line with the objective of the NIPC Act, the Government intended to promote indigenous participation and investment in the oil and gas industry. Consequently, Seplat was one of 15 oil and gas companies that were granted the pioneer tax incentive.

The Federal Government and the Federal Inland Revenue Service have long since recognised the pioneer tax incentive that was granted to Seplat. Indeed, after receiving the pioneer tax incentive, Seplat's royalty payments to the Government have increased from an average of US$40 Million in 2010 to US$101 Million in 2020 for all assets.

Please refer to our Corporate Announcement dated 15 May 2015, which addresses in detail the grant of pioneer status to Seplat.

Seplat is not a shareholder of Cardinal Drilling Services Limited; neither is Seplat a party to (or a guarantor of) the loan facility that was granted to Cardinal Drilling. The circumstances around the loan facility between Access Bank and Cardinal Drilling are presently before the courts for adjudication.

As a dual listed Company with a strong record of compliance and fundraising, Seplat observes the highest standards of corporate governance to which its Directors, officers and employees adhere. The details of our corporate governance practices are available on our website and our annual reports.

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