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Seplat Energy sues co-founder, A.B.C Orjiako, for operational breaches

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Seplat Energy has sued its co-founder, A.B.C Orjiako, and his firm, Amaze Limited, for breaching its operational guidelines.

Amaze Limited served as a consultant for Seplat Energy, but the oil company accused the former of taking actions that put it at risk of liability.

In a statement dated March 23, 2023, and obtained by Ripples Nigeria on Thursday, Seplat alleged that Amaze Limited and Orjiako used its letterhead without the board’s approval.

In order to protect its shareholders and directors from potential liability arising from the conduct of Orjiako and Amaze Limited, Seplat terminated the consultancy agreement between both parties.

The company has also commenced legal action against Orjiako and Amaze Limited at the Federal High Court, Abuja, to seek appropriate legal remedies.

The statement read: “Seplat Energy Plc (Seplat Energy or the Company) announces the termination with immediate effect of the Consultancy Agreement between the Company’s wholly-owned subsidiary and its co-founder, Dr. A.B.C Orjiako, acting through Amaze Limited. Under the Consultancy Agreement, Dr. Orjiako was obliged to provide defined assistance with certain external stakeholder engagements following his retirement from the Board after the 2022 Annual General Meeting in May 2022.

Read also:NNPC delays completion of Seplat’s ANOH gas plant

“The termination follows the suspension of the Consultancy Agreement on 13 February 2023, as unanimously approved by the Board of Directors, following repeated warnings about breaches of a material nature, such as unilaterally making significant commitments on Seplat’s letterhead without prior Board authority or knowledge.

“This course of action was necessary to protect the Company and its Shareholders, Directors, and Officers from potential and increasing liability arising from the conduct of the Consultants, Dr. Orjiako, and Amaze Limited.

“The Company has commenced legal action against Dr Orjiako and Amaze Limited at the Federal High Court in Abuja, to seek appropriate legal remedies.

“Seplat Energy reiterates its commitment to high standards of corporate governance across all areas of its business. The matter is now sub judice and awaiting resolution by the court.”

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