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Buhari renews Seplat’s three oil mining licences



Buhari renews Seplat's three oil mining licences

President Muhammadu Buhari has given approval for the renewal of three Oil Mining Licences (OMLs) held by Seplat Petroleum Development Company Plc.

The firm stated this in a disclosure it sent to the Nigerian Stock Exchange (NSE) on Thursday, adding that the presidential consent for the renewal of the three licences – OMLs 4, 38 and 41 with a new expiry date of October 21, 2038, is consequent upon the payment of a renewal bonus of $25.9 million.

Seplat Petroleum Development Company is an indigenous oil and gas company. The company is listed on both the Nigeria and London Stock Exchanges.

The Chief Financial Officer of Seplat, Roger Brown, who signed the disclosure, said the company holds a 45 per cent working interest in OMLs 4, 38 and 41.

Brown also added that in the first nine months of 2018, production from the licenses accounted for 92 per cent of Seplat’s total oil production and 100 per cent of Seplat’s gas production.

“In connection with the licence renewal Seplat has paid in full a Renewal Bonus of $25.9 million, thus ensuring all conditions for license renewal have been met.

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“The company is now working with the Department of Petroleum Resources (DPR) to obtain the updated title deeds in connection with the renewal.”

Also speaking on the development, Seplat’s Chief Executive Officer, Mr. Austin Avuru, said the company would invest with confidence in Nigeria’s oil and gas industry after the renewal.

“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 our shareholders”, Avuru said.

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