REG - Seplat PetDevCom Plc - Report on Payments to Governments for 2020

Seplat EnergyAnnouncement

08/03/2021 08:40

RNS Number : 4634R
  
Seplat Petroleum Development Co PLC
  
08 March 2021
  
 

Seplat Petroleum Development Company Plc
("Seplat" or "the Company")
 
REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR 2020
Lagos and London, 08 March 2021
Introduction
The following information is included to comply with the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom and it is prepared in accordance with Directive 2013/34/EU (the EU Accounting Directive (2013).
BASIS FOR PREPARATION 
Reporting entities           
This Report includes payments to governments made by Seplat Petroleum Development Company and its subsidiaries (Seplat). All payments to governments arise from operations within Nigeria.
Activities
Payments made by Seplat to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals, gas processing, oil and natural gas deposits or other materials (extractive activities) are disclosed in this Report. It excludes payments related to refining, natural gas liquefaction or gas-to-liquids activities. When payments cover both extractive and processing activities and cannot be split, the payments have been disclosed in full.
Government
Government includes any national, regional or local authority of a country to which Seplat has made payment related to these regulations, and includes any department, agency or entity that is controlled by such authority.
Project
Payments are reported at project level except for payments that are not attributable to a specific project, these are reported at entity level. A project is defined as operational activities which are governed by a single contract, license, lease, concession or similar legal agreement, and form the basis for payment to government. However, if multiple of agreements are substantially interconnected, this shall be considered as a project.  Indicators of integration include, but are not limited to, geographic proximity, the use of shared infrastructure and common operational management.
Payments
The information is reported under the following payment types.
Production entitlements
These represent the government's share of production in the reporting period arising from projects operated by Seplat. It comprises of crude oil and gas attributable to the Nigerian government by virtue of its participation as an equity holder in projects within its sovereign jurisdiction (Nigeria). 
Production entitlements to the government are lifted independently by the relevant government agency.
Royalties
These are payments for the rights to extract oil and gas resources, typically at a set percentage of revenue less any deductions that may be taken.
License fees, rental fees, entry fees and other considerations for licenses and/or concessions
These are fees and other sums paid as consideration for acquiring a license for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to obtain access to extractive resources, are excluded. Also excluded are payments made in return for services provided by a government. 
Corporate taxes
Corporate taxes are charges based on taxable profit which are payable to the government. Examples of corporate taxes in Nigeria include Petroleum Profit Tax (PPT), corporate income tax (CIT) and education tax.
Corporate income tax (CIT) is a tax imposed on profit of a company from all sources. Gas operations are liable to CIT.
Petroleum profit tax (PPT) is a tax applicable to upstream operations in the oil industry in lieu of corporate income tax. Oil operations such as oil mining, prospecting and exploration leases are liable to PPT.
Education tax is tax applicable to both oil and gas operations based on assessable profit. Assessable profit is the profit derived after deducting all the allowable expenses. 
Other types of payments that are required to be disclosed in accordance with the Regulations are the following:
·      Dividends
·      Signature, discovery and production bonuses
·      Infrastructure improvements
However, for the year ended 31 December 2020, there were no such reportable payments made by Seplat to government that were above the materiality threshold as determined below.
Materiality
For each payment type, total payments below £89,934 (€100,000, $122,760) whether made as a single payment or as a series of related payments, to a government agency are excluded from this Report. 
Reporting currency
Payments in this report have been disclosed in US Dollars. Where actual payments have been recorded in a currency other than US Dollars, they have been translated using the annual average exchange rate.
REPORT ON PAYMENTS TO GOVERNMENTS 2020
Government and Expense Report (In USD)
 




 


Production Entitlement


Royalties 


Fees


 
Taxes


Total




GOVERNMENTS


 


 


 


 


 




Nigerian National Petroleum Corporation


389,575,992


 -   


 -   


 -   


 389,575,992 




Department of Petroleum Resources 


-


 111,632,919 


 18,376,189 


 -   


 130,009,108 




Nigeria Export Supervision Scheme


-


 -   


 579,361 


 -   


 579,361 




Niger Delta Development Commission


-


 -   


 17,934,968 


 -   


 17,934,968 




Nigerian Content Development and Monitoring Board


-


 -   


 4,826,290 


 -   


 4,826,290 




Federal Inland Revenue Service


-


 -   


 -   


 21,239,383 


 21,239,383 




 
Total


389,575,992


 111,632,919 


 41,716,808 


 21,239,383 


 564,165,102 




 
Project and Expense Report (In USD)




 


Production Entitlement 


Royalties 


Fees


 
Taxes


Total




PROJECTS


 


 


 


 


 




OML 4, 38 and 41


 326,107,787 


 75,617,803 


 35,400,094 


 9,551,123 


 446,676,808 




OML 17


-


 -   


 1,002,000 


 39,645.77 


 1,041,646 




OML 40


-


 29,915,648 


 736,144 


 10,589,779 


 41,241,571 




OML 53


 63,468,205 


 5,750,039 


 4,292,293 


 -   


 73,510,536 




OML 56


 -   


 349,429 


 286,277 


 1,058,835 


 1,694,541 




 
Total


 389,575,992 


 111,632,919 


 41,716,808 


 21,239,383 


 564,165,102 




 
 
- ENDS -
 
Enquiries




Seplat Petroleum Development Company plc 


 




Emeka Onwuka, CFO


+44 (0) 203 725 6500




Carl Franklin, Head of Investor Relations
 
 
 


 
 




Ayeesha Aliyu, Investor Relations


+234 (0) 1 277 0400




Chioma Nwachuku, GM - External Affairs and Communications


 




 


 




FTI Consulting


 




Ben Brewerton / Sara Powell
 


+44 (0) 203 727 1000




 


seplat@fticonsulting.com 
 




 


 




Notes to editors
Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange ("LSE") (LSE:SEPL) and Nigerian Stock Exchange ("NSE") (NSE:SEPLAT). 
Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds.  For further information please refer to the company website, http://seplatpetroleum.com/
 

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