Nigeria: Ex-Seplat launches a competing bid for Exxon's assets

Former Seplat Energy executive Austin Avuru appears to be at odds with his former company in the pursuit of ExxonMobil's mature Nigerian onshore assets.

Speculation has recently appeared in the Nigerian press that Chappal Petroleum is working on a bid for Exxon's licenses. Chappal declined to comment on the speculation.

Seplat revealed that it was considering a bid for the Exxon package in November 2021 . The company said it was working with a partner. Seplat was in "competitive discussions," it said.

However, Seplat announced on December 23 that it was terminating Avuru's contract as a non-executive director. Avuru is one of four senior executives on Chappal's team.

Seplat said Avuru had violated its "corporate governance policies and fiduciary duties." The board called on him to resign as a director.

Seplat paid Avuru $2.72 million in 2020 and $3.59 million in 2019. The compensation committee also provided an exit package of $1.13 million and $543,994 for loss of office and payment in lieu of notice in 2020.

The executive owns about 60 million shares of Seplat, giving him a 10.4% stake, via a 37.11% stake in Platform Petroleum and its wholly owned subsidiary Professional Support Ltd.

Seplat has asked Platform to name a replacement candidate for a board seat. The company will make another announcement in due course, he said.

CHAPPAL'S ACCENT

Avuru's lawyers refuted Seplat's allegations. A statement from Perchstone & Graeys said Seplat's intent was "clearly designed to slander" Avuru. The lawyers referred to a January 2021 letter from Seplat.

Avuru co-founded Seplat in 2009 and led the company as CEO until July 2021 . Roger Brown has replaced Avuru as CEO.

Chappal was formed in March 2020. The company said it is working on a series of acquisitions and will focus on large brownfields in marshes and shallow waters.

Reports suggest that Mobil Producing Nigeria (MPN) is proposing OML 67, 68 and 70, supplying the Qua Iboe terminal, and OML 104.

Chappal's CEO, Ufoma Immanuel, described the company as ESG-focused in an interview with This Day in early 2021. Chappal works on "mature brownfield reservoirs, construction and/or rehabilitation of associated infrastructure and development of ancillary gas projects," he mentions.