We Paid FG $564m For Operating In Nigeria In 2020- Seplat

Seplat Petroleum Development Company has said that it paid $564m to the Federal Government for its operation in the country In 2020.

Seplat disclosed in a report seen by THE WHISTLER that the payment was made through the parent company and its subsidiaries.

The payments are arising from activities involving the exploration, prospection, discovery, development and extraction of minerals, gas processing, oil and natural gas deposits or extractive activities.

The recipients of the payment during the period were the Nigerian National Petroleum Corporation, Department of Petroleum Resources, Nigeria Export Supervision Scheme, Niger Delta Development Commission, Nigerian Content Development and Monitoring Board and the Federal Inland Revenue Service.

Seplat said a total of $389.57m was paid to the Nigerian National Petroleum Corporation for Production entitlements.

The production entitlements represent the government’s share of production in the reporting period arising from projects operated by Seplat.

It also revealed that it paid Department of Petroleum Resources royalties of $111.63m and fees worth $18,376,189. This totals $130m paid to DPR.

Also the Nigeria Export Supervision Scheme received a fee of $579,361 from the company in 2020.

According to the company the Niger Delta Development Commission was paid a fee of $17.93m during the period.

Based on the disclosure made by Seplat, Nigerian Content Development and Monitoring Board was paid an operation fee of $4.83m last year.

The Federal Inland Revenue Service received a tax of $21.24m from the company in 2020.

Seplat noted that license fees, rental fees, entry fees were paid for as consideration for acquiring a license for gaining access to an area where extractive activities are performed.

The company noted that, “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. “

Based on the disclosure, the $564m paid to FG was specifically spent on five Oil Mining Leases in the country.

The oil firm said it paid $446,676,808 on OML 4, 38 and 41. A breakdown showed that $326.11m was paid to FG for production entitlements royalty $75.612m $35.4m for fees and $9.5 on taxes to the FIRS.

On OML 17, the company disclosed that $1m was paid to FG as fees and $39,645.77 as taxes, totaling $1.041m.

Seplat further revealed that of the monies paid to FG, OML 40 gulped $29.92m on royalty, a fee of $736,144 was paid while tax on the OML 40 was $10.58m. This leaves the payment for OML 40 at $41.24m in 2020.

On the Oil Mining Lease 53, Seplat paid a total of $73.51m. According to the company, production entitlement paid was $63.5m, a royalty of $5.75m was paid to FG and fee of $4.29m.