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Seplat Petroleum Development Company announced today that it has taken over OML 53 and OML 55, following a judgement earlier this Friday by the Supreme Court of Nigeria delivered in its favour.

Brittania-U Nigeria Limited had filed a lawsuit against Seplat and Chevron Nigeria stopping the transfer of the oil blocks to Seplat.

In February 2015, Seplat completed the acquisition of a 40 percent interest in OML 53 from Chevron and purchased 56.25 percent share capital of Belemaoil Producing Limited, which acquired a 40 percent interest in OML 55 also from Chevron.

Although Seplat was designated operator of the oil assets, the full transfer of the assets were not completed due to the suit filed by Brittania-U, which was one of the bidders for the assets. Brittania-U had also sought the order of the Supreme Court for an interlocutory injunction restraining Chevron and Seplat from proceeding with the sale and transfer of the assets after decisions from the lower courts did not go in its favour.  

“We are naturally very pleased with today’s ruling, not least because it means we are now free to deploy our proven operating expertise to realise the significant reserve, production and value potential these blocks hold,” Austin Avuru, Seplat’s Chief Executive Officer, said today.

Founded in 2009, Seplat is a leading Nigerian oil and gas exploration and production company. The company has a portfolio of several oil assets in the Niger Delta, including OML 4, 38, 41, and OPL 283. Seplat is listed in both the Lagos and London stock exchanges.

“OML 53 fits neatly within our strategy of securing, commercialising and monetising natural gas in the Niger Delta to supply the rapidly growing domestic market and will further reinforce our position as a preeminent supplier of gas in Nigeria. OML 55 provides us with a number of attractive opportunities to boost oil and gas output, and is consistent with our strategy of prioritising assets that offer near-term production growth, cash-flow and reserve replacement potential in the onshore and shallow water offshore areas of Nigeria," Mr. Avuru further noted.   

The recoverable hydrocarbon volumes estimated for Seplat's interest in the two oil blocks are approximately 71 million barrels of oil and condensate and 767 Billion Standard Cubic Feet (Bscf) of gas (total 197 million barrels of oil equivalent).

Seplat had announced on Tuesday that its revenues for 2015 were about 22 percent lower than the company’s earnings in the 2014 full year results. Having earned $775 million in 2014, the company expects to earn between $550 million to $600 million in the 2015 full year.