Buhari approves 20-year renewal of 3 oil licenses for Seplat

President Muhammadu Buhari has approved the renewal of three onshore oil production licenses, the OML 4, 38 and 41 for a period of 20 years.

Seplat, which is the operator of the oil blocks on behalf of the NNPC and holds 45 per cent working interest in the three oil assets located in Edo and Delta states, announced this yesterday.

The announcement was made in a filing to the Nigerian Stock Exchange (NSE).

“Seplat Petroleum Development Company Plc, a leading Nigerian indigenous oil and gas company listed on both the NSE and London Stock Exchange, today announces that the President and Honourable Minister of Petroleum Resources has given consent for the renewal of OMLs 4, 38 and 41 to a new expiry date of 21 October 2038,” the company’s Chief Financial Officer Mr. Roger Brown said in the notice.

Brown said that the first nine months of 2018 production from the three 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 license renewal Seplat has paid in full a Renewal Bonus of $25.9 million, thus ensuring all conditions for license renewal have been met,” the notice read.

The oil blocks were sold by Shell, Eni and Total as part of a recent divestment programme by the international oil companies (IOCs).