SEPLAT Reports on Payments to Governments for the Year 2020


Monday, March 08, 2021 / 02:14PM / NSE / Header Image Credit: Seplat Petroleum 


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 Plc and its subsidiaries (Seplat). All payments to governments arise from operations within Nigeria.


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 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.


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.


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.


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.



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

Visit Seplat Petroleum Development Company Plc IR Page in Proshare MARKETS 

Proshare Nigeria Pvt. Ltd.

Graph - One Year Share Price Movement

 Proshare Nigeria Pvt. Ltd. 


Table:  Q3 2020 Unaudited Results

 Proshare Nigeria Pvt. Ltd. 


Related News

1.        SEPLAT Notifies of Amendment to the Ex-Dividend Rate...

2.       SEPLAT Releases Holding Statement on Pointblank Publications...

3.       SEPLAT Declares N30.7bn Loss in 2020 Audited Results SP N530.00k ...

4.       SEPLAT to Issue its FY 2020 Audited Results on March 1 2021...

5.       Court Suspends Order of Interlocutory Injuctions on Seplat s Office Building...

6.       FHC Upholds Mareva Injunction in Access Bank Case Bank to Hold Onto SEPLAT s As...

7.        SEPLAT Announces a Crude Purchase Agreement with Waltersmith Petroman Oil Ltd...

8.       Seplats Navigation of Funding Options Dual Listings Eurobond and the Cardinal...

9.       SEPLAT Releases its 2019 Sustainability Report...

10.   SEPLAT Confirms its Post Offer Intention on Eland...


Related News