Seplat Petroleum Development Company Plc, an indigenous energy company, says it paid (N564.17 million) N213.82billion as taxes, fees, and royalties into the coffers of the government in 2020.
This was made known in a statement sent to the Nigerian Stock Exchange and signed by the Chief Financial Officer of the company, Mr. Emeka Onwuka.
According to the company, the payments were made with respect to activities involving the exploration, prospection, discovery, development, and extraction of minerals, gas processing, oil, and natural gas deposits or other extractive materials.
The oil and gas company said the payments made to Nigerian National Petroleum Corporation (NNPC) last year as production entitlement amounted to $389.58 million.
A breakdown of the amount paid to NNPC showed that the company paid $326.12 million for projects under the oil bloc OML 4,38 and 41 and $63.47 million for projects operated by the OML 53.
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A total of $111.63 million was paid as royalties to theDepartment of Petroleum Resources (DPR) in 2020.
A breakdown of this payment indicated that $75.62 million was paid as royalties for operations in the OML 4,38 and 41 oil blocs; $29.92 million for projects executed by OML 40; $5.75 million for OML 53; and $349,429 for OML 56.
The royalties are payments to the government for the rights to extract oil and gas resources in the country.
The report stated that a total of $41.72 million was paid as fees to four government agencies.
These fees, according to Seplat, were paid as consideration for acquiring a license for gaining access to an area where extractive activities are performed.
A breakdown indicated that Seplat paid $18.38 million to DPR; $579,361 to Nigeria Export Supervision Scheme; $17.93 million to Niger Delta Development Commission (NDDC); and $4.83 million to the Nigerian Content Development and Monitoring Board (NCDMB).
The oil and gas company said that $21.24 million was paid to Federal Inland Revenue Service (FIRS) last year.
Seplat said it paid $9.55 million as tax on operations carried out on OML 4, 38 and 41; $39,645.77 on OML 17; $10.59 million on OML 40; and $1.06 million on OML 56.
Seplat, a leading supplier of gas to the domestic power generation market, says it is pursuing a Nigeria-focused growth strategy and positioned to participate in future asset divestments by international oil companies, farm-in opportunities, and future licensing rounds.
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