GBOLABO AFUWAPE
Having met the requirements including payment if $25.9 million renewal bonus, the federal government has renewed Seplat Petroleum Development Company Plc’s Oil mining licenses (OML) 4, 38 and 41 for the next 20 year’s.
The Oil firm announced the renewal notice Thursday in a press statement by its chief financial officer, Mr Roger Brown.
The statement had it that President Muhammadu Buhari and the Minister of Petroleum Resources, Dr Ibe Kachikwu have given consent for the renewal of OMLs 4, 38 and 41 to a new expiry date of 21 October 2038.
Seplat holds a 45 percent working interest in OMLs 4, 38 and 41 and 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 has paid in full a Renewal Bonus of US$25.9 million, thus ensuring all conditions for license renewal have been met.
The Company is now working with the Department of Petroleum Resources to obtain the updated title deeds in connection with the renewal.
Commenting on the license renewal Austin Avuru, Seplat’s Chief Executive Officer, 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”.
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