Seplat Energy Plc, a Nigerian-based oil and gas company with headquarters in Lagos and London, has announced the termination of its Consultancy Agreement with immediate effect.
The agreement was between the company’s wholly-owned subsidiary and its co-founder, Dr. A.B.C Orjiako, acting through Amaze Limited.
According to Seplat Energy, Dr. Orjiako was obligated to provide defined assistance with certain external stakeholder engagements following his retirement from the Board after the 2022 Annual General Meeting in May 2022.
However, the consultancy agreement was suspended on 13 February 2023, following repeated warnings about breaches of a material nature.
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The company stated that Dr. Orjiako unilaterally made significant commitments on Seplat’s letterhead without prior board authority or knowledge, which led to the suspension and subsequent termination of the agreement.
The board of directors unanimously approved the suspension and termination to protect the company and its shareholders, directors, and officers from potential and increasing liability arising from the conduct of the consultants.
In a bid to seek appropriate legal remedies, Seplat Energy has commenced legal action against Dr. Orjiako and Amaze Limited at the Federal High Court in Abuja. The matter is now sub judice and awaiting resolution by the court.
Seplat Energy reiterated its commitment to high standards of corporate governance across all areas of its business.
The announcement was made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange Limited, 2015 (Issuer’s Rule).
Mr. Basil Omiyi, Independent Chairman of Seplat Energy PLC, authorised the publication of the announcement on behalf of the entire board of Seplat Energy PLC.