Seplat Claws Back $150M “Cash Call” From NPDC

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Seplat has, in the space of nine months, received about 150Million, amounting to a third of the money owed it by NPDC, its government-owned Joint Venture partner.

Receipts from NPDC, at the end of the first quarter 2016, have reduced the net balance from a peak of $504Million in the beginning of the second half of 2015, “to a current level of around $350M”, the company says in a recent report.

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Seplat’s ability to reduce receivable from government owned company by 33% in such a short time frame is an industry record.  NPDC is a subsidiary of NNPC, the Nigerian state hydrocarbon firm known to be chronically out of date with payment to its partners.

Seplat says it was able to claw back its money after signing agreement in mid-2015 to start offsetting NPDC’s share of gas revenues against the outstanding balance.

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“At end 2015 the net NPDC receivables balance stood at $435Million”, down from $504MM as of June 31, 2015, the company reports. In the first months of 2016, Seplat received $85MM more.

In January 2016, Seplat successfully refinanced its existing debt facilities with a new $700Million seven year secured term facility and $300Million three year secured revolving credit facility. The seven year facility also includes an option to upsize the facility by up to an additional $700Million for qualifying acquisition opportunities. 2016 capital investments are expected to be around $130Million.

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