Seplat Energy PLC 2022 Audited Financial Statement

Audited results
for the year ended

31 December 2022
28 February 2023
Reliable energy,
limitless potential
Seplat Energy Plc | Full year 2022 Financial Results

Lagos and London, 28 February 2023: Seplat Energy Plc (“Seplat Energy” or “the Company”), a leading Nigerian
independent energy company listed on the Nigerian Exchange Limited and the London Stock Exchange, announces its
audited results for the full year ended 31 December 2022.
Special Dividend
▪ Board recommends special dividend of US5.0 cents per share in addition to final dividend of US2.5 cents per share
Operational highlights
▪ Working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in Q3
▪ Use of Amukpe-Escravos Pipeline (AEP) enables high uptime in December, exit rate of 53 kboepd
▪ Completed 13 wells including two wells for the ANOH gas processing plant
▪ ANOH Gas Processing Plant 95% mechanically complete, awaiting third-party infrastructure completion
▪ Safety culture maintained, one LTI recorded in October, LTIF for the full year is 0.12
Financial highlights
▪ Revenues of $951.8 million, up 29.8%
▪ Adjusted EBITDA $416.9 million, up 12.1%
▪ Strong full year cash generation of $571.2million against capex of $163.3million and $140.3million transaction deposits
▪ Strong balance sheet with $404.3 million cash at bank, net debt of $365.9 million
▪ Full year production cost of $10.3/boe
▪ 2022 Ubima divestment receipts were $18.6 million out of $55.0 million (additional $0.9million received in Jan 2023)
Corporate updates
▪ Continue to pursue approvals for acquisition of entire share capital of MPNU
▪ Finalised New Energy investment plan, identified near term opportunities for consideration and FID late 2023
▪ Commenced implementation of roadmap to achieving net zero by 2050
▪ Provisional applications for voluntary conversion of operated Oil Mining Leases under Petroleum Industry Act
▪ Work on-going to spin out Midstream Gas business in line with PIA provisions
▪ First Climate Risk and Resilience Report to be published at end of March 2023 under TCFD guidelines
▪ Carbon intensity of production figure published: 23.9Kg/boe
Outlook for 2023

▪ Full year production guidance of 45-55 kboepd (excluding ANOH), capex expected to be $160 million
▪ Increased use of AEP will improve revenue assurance
▪ Sibiri appraisal wells indicating results on high side of initial Oil In-Place estimates, FID targeted by end 2023
▪ ANOH first gas guidance moved to Q4 2023 owing to delays in third-party infrastructure
▪ MPNU: continuing to pursue a reaffirmation of the Ministerial approval received on the 8 August 2022.
Roger Brown, Chief Executive Officer, said:

“I am delighted that our strong financial performance will enable the payment of a US7.5 cent final dividend, despite the
significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents
represents a dividend yield of around 11% at the current LSE share price.
As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling
underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year. Our
gas business continues to develop, with first gas expected from ANOH in Q4 this year, and we are now in the process of
separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.
We are continuing to pursue the Presidential approval received on the 8 August 2022 for the MPNU acquisition and we
remain focused on concluding the transaction within the remaining term of President Buhari before a new president is
sworn into office at the end of May 2023.
We are implementing our roadmap to net zero and have made encouraging progress with a 35% reduction in emission
intensity last year. The major reduction in carbon emissions is routine flaring which we are on target to eliminate by the
end of 2024. Alongside these efforts, and as part of our stated strategy to become Nigeria’s energy champion across the
entire value chain, we are planning to invest in gas-to-power and solar power projects with FID targeted for later this year
if the projected returns meet our internal hurdle rates.
We are confident in our outlook for 2023, with the new Amukpe-Escravos Pipeline working well, our drilling cost reductions
and efficiencies being delivered, and ANOH’s first gas expected in Q4 once 3rd party infrastructure is completed, our
business is on a firm footing to facilitate significant growth and higher returns for stakeholders.”

Summary of performance
$ million ₦ billion
FY 2022 FY 2021 % change FY 2022 FY 2021
Total dividend including Special US15 cents US10 cents 50%
Revenue 951.8 733.2 29.8% 403.9 293.6
Gross profit 464.7 285.2 63.0% 197.2 114.2
Impairment of assets * (6.4) 36.6 nm 2.7 14.6
EBITDA ** 416.9 371.8 12.1% 175.6 146.8
Operating profit (loss) 274.7 250.7 9.6% 116.6 100.4
Profit (loss) before tax 204.4 177.3 15.3% 86.7 71.0
Cash generated from operations 571.2 376.8 51.6% 242.4 150.9
Working interest production (boepd) 44,104 47,693 (7.5%)
Total crude oil lifted (MMbbls) 8.3 8.9 (6.8%)
Average realised oil price ($/bbl) 101.67 70.54 44.1%
Average realised gas price ($/Mscf) 2.82 2.85 (1.1%)
LTIF 0.12 0
CO2 emissions intensity
23.9 36.6 (34.7%)
from operated assets, kg/boe
* FY 2021 includes reversal of $74.7m impairment charge under IAS 36
** Adjusted for impairment, fair value loss and decommissioning
Responsibility for publication

The Board member responsible for arranging the release of this announcement on behalf of Seplat Energy is
Emeka Onwuka, CFO Seplat Energy Plc.
Signed:
Emeka Onwuka
Chief Financial Officer
Important notice
The information contained within this announcement is unaudited and deemed by the Company to constitute inside information as stipulated under
Market Abuse Regulations. Upon the publication of this announcement via Regulatory Information Services, this inside information is now considered to
be in the public domain.
Certain statements included in these results contain forward-looking information concerning Seplat Energy’s strategy, operations, financial performance
or condition, outlook, growth opportunities or circumstances in the countries, sectors, or markets in which Seplat Energy operates. By their nature,
forward-looking statements involve uncertainty because they depend on future circumstances and relate to events of which not all are within Seplat
Energy’s control or can be predicted by Seplat Energy. Although Seplat Energy believes that the expectations and opinions reflected in such forward-
looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. Actual results and
market conditions could differ materially from those set out in the forward-looking statements. No part of these results constitutes, or shall be taken to
constitute, an invitation or inducement to invest in Seplat Energy or any other entity and must not be relied upon in any way in connection with any
investment decision. Seplat Energy undertakes no obligation to update any forward-looking statements, whether as a result of new information, future
events or otherwise, except to the extent legally required.
Seplat Energy Plc | Full Year 2022 Financial Results 3

Investor call
At 09:00 GMT / 10.00 WAT on Tuesday 28 February 2023, the Executive Management team will host a conference call
and webcast to present the Company’s results.
The presentation can be accessed remotely via a live webcast link and pre-registering details are below. After the meeting,
the webcast recording will be made available and access details of this recording are also set out below.
A copy of the presentation will be made available on the day of results on the Company’s website at
https://seplatenergy.com/ .
Event title: Seplat Energy Plc: Full year results

Event date 9:00am (London) 10:00am (Lagos) Tuesday 28 February 2023
Webcast Live Event Link https://secure.emincote.com/client/seplat/seplat016
Conference call and pre-register Link: https://secure.emincote.com/client/seplat/seplat016/vip_connect
Archive Link: https://secure.emincote.com/client/seplat/seplat012
The Company requests that participants dial in 10 minutes ahead of the call. When dialling in, please follow the instructions
that will be emailed to you following your registration.
Enquiries:
Seplat Energy Plc
Emeka Onwuka, Chief Financial Officer +234 1 277 0400
Eleanor Adaralegbe, Vice President, Finance
Carl Franklin, Head of Investor Relations [email protected]
Ayeesha Aliyu, Investor Relations [email protected]
Chioma Nwachuku, Director External Affairs & Sustainability
FTI Consulting
+44 203 727 1000
Ben Brewerton / Christopher Laing
[email protected]
Citigroup Global Markets Limited

Tom Reid / Peter Catterall +44 207 986 4000
Investec Bank plc

Chris Sim / Charles Craven / Jarrett Silver +44 207 597 4000
About Seplat Energy
Seplat Energy PLC (Seplat) is Nigeria’s leading indigenous energy company. Listed on the Nigerian Exchange Limited
(NGX: SEPLAT) and the Main Market of the London Stock Exchange (LSE: SEPL), we are pursuing a Nigeria-focused
growth strategy in oil and gas, as well as developing a Power & New Energy business to lead Nigeria’s energy transition.
Seplat’s energy portfolio consists of seven oil and gas blocks in the prolific Niger Delta region of Nigeria, which we operate
with partners including the Nigerian Government and other oil producers. We also have a revenue interest in OML 55. We
operate a 465MMscfd gas processing plant at Oben, in OML4, and are building the 300MMscfd ANOH Gas Processing
Plant in OML53 and a new 85MMscfd gas processing plant at Sapele in OML41, to augment our position as a leading
supplier of gas to the domestic power generation market.
For further information please refer to our website, http://seplatenergy.com/

Operating review
Upstream business performance
Reserves and Resources
The Group’s audited 2P reserves, as assessed independently by Ryder Scott Company, L.P., decreased by 19 MMboe
from 457 MMboe at the end of 2021 to 438 MMBoe at the end of 2022. The change is mostly due to production of 9 MMbbls
of liquids and 41.0 Bscf of gas (7 MMboe). The divestment of Ubima, the discovery at Sibiri, and reclassifications and
revisions of previous estimates makes up the difference.
2P reserves at 31/12/2022 2P reserves at 31/12/2021

Liquids Gas Total(3) Liquids Gas Total
Seplat % MMbbl Bscf MMboe MMbbl Bscf MMboe
OMLs 4, 38 & 41 45% 138 629 246 144 651 256
OPL 283 40% 4 61 15 5 68 17
OML 53 40% 39 653 152 39 660 153
OML 55 Fin. Interest 3 - 3 4 - 4
(1)
OML 40 45% 22 - 22 25 - 25
(2)
Ubima 82% - - - 2 - 2
Total 206 1,343 438 219 1,379 457
1. Eland has a 45% working interest in OML40 until the Westport loan is fully repaid in accordance with the loan agreement, reverting to 20.25%
2. Eland had an 82% working interest in the Ubima marginal field
3. Quantities of oil equivalent are calculated using a gas-to-oil conversion factor of 5,800 scf of gas per barrel of oil equivalent.
The Group’s audited 2C resources decreased by 7.3% from 75 MMboe to 70 MMBoe, comprising 43 MMbbls of oil and
condensate and 159 Bscf of natural gas. The decrease in 2C gas resources (boe) is mostly due to revisions in Emebiam,
Owu and Oben fields.
2C resources at 31/12/2022 2C resources at 31/12/2021

(1)
Liquids Gas Total Liquids Gas Total
Seplat % MMbbl Bscf MMboe MMbbl Bscf MMBoe
OMLs 4, 38 & 41 45% 31 124 52 28 162 56
OPL 283 40% 7 24 11 4 21 8
OML 53 40% 3 11 5 4 14 6
OML 40 45% 2 0 2 3 0 3
Ubima 82% - - - 2 0 2
Total 43 159 70 41 197 75
Abiala has not been included in 2C resources because the farm in agreement had not been concluded at the time of closure of the reserves audit
Consequently, the Group’s working interest 2P reserves and 2C resources stood at 507.5 MMboe as of 31 December
2022, comprising 248.5 MMbbls oil and condensate and 1,502.2 Bscf of natural gas (259 MMBoe).

Production
Full-year total working interest production for 2022 was 16.1 MMboe. Within this, liquids production was 9.03 MMbbls,
down 26.6% year-on-year, and gas production was 7.1 MMBoe (41.0 Bscf), up 4.1% year-on-year. In addition, the Group
recorded a total downtime of 37%, primarily because of problems with third-party export infrastructure.
2022 2021
Liquids Gas Total Liquids Gas Total
Seplat % bopd MMscfd boepd bopd MMscfd boepd
OMLs 4, 38 & 41 45% 15,422 112.3 34,791 18,243 107.9 36,844
OPL 283 40% 1,067 - 1,067 1,012 - 1,012
OML 53 40% 1,689 - 1,689 3,164 - 3,164
OML 40 45% 6,557 - 6,557 5,923 - 5,923
Ubima - - - 749 - 749
Total 24,735 112.3 44,104 33,714 107.9 47,693
Liquid production volumes as measured at the LACT (Lease Automatic Custody Transfer) unit for OMLs 4, 38 and 41; OML 40 and OPL 283 flow station.
Gas conversion factor of 5.8 boe per scf.
Following the decision to exit from the Ubima asset in April 2022, volumes from the marginal field have not been reported in 2022
Volumes stated are subject to reconciliation and will differ from sales volumes within the period.
Working interest production by quarter
Q1 2022 Q2 2022 Q3 2022 Q4 2022

Liquid Gas Total Liquid Gas Total Liquid Gas Total Liquid Gas Total
Seplat % kbopd MMscfd kboepd kbopd MMscfd kboepd kbopd MMscfd kboepd bopd MMscfd kboepd
OMLs 4, 17.7 107.4 36.2 17.1 127.9 39.2 9.5 103.1 27.2 17.5 111.0 37.5
45%
38 & 41
OML 40 45% 7.4 - 7.4 10.1 10.1 1.6 - 1.6 7.3 7.4
OML 53 40% 2.7 - 2.7 1.6 1.6 1.1 - 1.1 1.3 1.4
OPL 283 40% 1.3 - 1.3 1.5 1.5 0.3 - 0.3 1.1 1.1
Total 29.1 107.4 47.6 30.3 127.9 52.4 12.5 103.1 30.3 27.2 111.0 46.4
rd MMbbls
3 party 0.7 0.5 2.2 1.3
deferment
Liquids production for all assets was affected by evacuation issues during the year, particularly in Q3 on the Forcados
export route, and this led to total deferred liquid volumes of 4.7 MMbbls for 2022.
For OMLs 4, 38, & 41, which rely on the Forcados route, the Forcados Terminal (FOT) was unavailable for 146 days in
2022 (including 78 consecutive days in Q3 2022). The force majeure declared on the Trans Forcados pipeline (TFP) and
other deferments due to maintenance activities impacted crude production. The situation would have been more acute had
we not successfully operationalised the Amukpe to Escravos Pipeline (AEP) in the third quarter. A total of 1.6 MMbbls or
10.1 kbopd (working interest) was exported through the AEP from July 2022, when the pipeline became operational. As
expected, there was an improvement in performance from the fourth quarter, with 90% of our liquids evacuated through
the AEP in December 2022, enabling an exit rate for the year of 53 kboepd across the Group.
Similarly, pipeline unavailability impacted production at OML 40. After a 39-day outage of the Forcados Oil Terminal (FOT)
and Trans Escravos Pipeline (TEP) in the fourth quarter (135 days outage for the full year), production resumed, and
evacuation commenced in November 2022.
For OML 53, with production of around 1,000 bopd (gross) from the Jisike field being shut-in since February 2022, we
could only evacuate an average of about 3,000 bopd from Ohaji to the Waltersmith Refinery.
Divestment of Ubima marginal field

Wester Ord Oil and Gas Nigeria Ltd. (WON), a wholly owned subsidiary of the Company, agreed in Q1 2022 with the J.V.
partner All Grace Energy Ltd. (AGEL) to divest WON’s rights in the Ubima Marginal Field for a consideration of $55.0
million. Under the agreement, the Company has received a total of $19.5 million, with $18.6 million received in 2022 and
$0.9 million received in January 2023.

As a result, Ubima’s production has been removed from the Group’s daily average output and WON has derecognised
assets and liabilities in H1 2022, including Ubima’s current reserves of approximately 2 MMbbls.
Farm-in to Abiala marginal field

Following the 2020 marginal field bid round in Nigeria, Naphta Global E&P Ltd. (Naphta) was awarded 100% equity in the
Abiala marginal field carved out of OML 40 by the NUPRC. The marginal field contains 2C gross oil resources of
approximately 40 MMbbls.
Elcrest (45% owned by Seplat Energy) has entered into an agreement with Naphta for a 95% equity farm-in to the Abiala
marginal field, while Naphta will have a 5% carried interest. Elcrest will also assume the role of Operator and Technical &
Financial Partner in the Elcrest/Naphta Joint Venture. The partners executed Heads of Agreement with a signature bonus
of $12 million paid to NUPRC. The transaction represents a consolidation of the Company’s strategic position on the OML
40 block. It provides an early monetisation opportunity using existing OML 40 facilities, subject to agreement with NEPL
(NNPC E&P Limited, formerly NPDC), which operates the OML 40 Asset.
In developing the field, Elcrest is targeting first oil by the end of Q2 2023 and plans to focus on low-cost development with
early monetisation opportunities that leverage existing contractual positions to accelerate the field’s development. Seplat
Energy will also explore optimising its tax position to the extent possible under the new PIA.
Drilling activities
The drilling programme for 2022 spudded thirteen wells and successfully delivered eleven wells below budgeted costs. An
additional two wells (ANOH-03 & ANOH-04) were spudded by SPDC in 2022 but will not be completed until 2023 due to
delays in the gas plant on-stream date.
In OML 4, 38 & 41, we spudded and delivered four wells: the Amukpe-5ST2, Oben-52, Oben-53 and Ethiope-02 wells,
which are expected to produce a combined gross rate of c.5,000 bopd and c.3.1 MMscfd of gas.
In OML 53, we spudded three wells and delivered one well: the Owu-02 appraisal well was spudded and completed. The
OHS-08 was completed in January 2023 and the OHS-07 expected to be completed later in Q1 2023. The expected peak
production from OHS-07 and OHS-08 is c.3,500 bopd.
In OML 40, we spudded and delivered six wells: the Opuama-12, Opuama-13, Opuama-14, Opuama-15, Opuama-16 wells
and Sibiri-1. The Opuama wells have commenced production, with gross combined production of approximately c.9,000
bopd.
Total expected peak production for the production wells spudded in 2022 is expected to be c.17,500 bopd of oil and c.3.1
MMscfd of gas or working interest: c.7,700 bopd and 1.4 MMscfd.
In OML 40, the Sibiri oil discovery is being appraised by two wells. The Sibiri-1 discovery well was drilled in Q1 2022 and
as reported in our 2021 full-year results last year, encountered eight oil-bearing reservoirs with 353 ft of gross oil pay and
229 ft of net pay. The post discovery Oil In-Place was estimated in the range 24-34-94 million barrels.
Appraisal drilling of Sibiri-2, with the objectives of testing the eastern and south-western flanks, commenced on 30 January
2023 and reached TD on 23 February, with initial results indicating significant uplift in mid-case Oil-In-Place volumes. In
the eastern flank, four oil bearing reservoirs with 68 ft of gross oil and 48 ft net pay were encountered. In the south-western
flank, nine oil bearing reservoirs with an initial estimate of 292 ft of gross oil and 180 ft net pay, including two new pay
zones, were encountered. These preliminary results are in line with the high side of pre-appraisal Oil In-Place evaluation.
Further well data acquisition is ongoing and subsequent technical studies are required to confirm the initial results.
The extended well testing (EWT) of Sibiri-1 commenced on 21 February 2023 via a 6km flow line to the OML40 Opuama
facilities. Testing and evaluation of crude properties is ongoing.
The Field Development Plan is on schedule to be completed in Q4 2023, leading to the Final Investment Decision for the
full field development soon after. Development drilling is anticipated in Q1 2024 with expected peak production of 5,000-
6,000 barrels of oil per day in 2024-25.
Export infrastructure diversification

We continue to pursue alternative crude oil evacuation options for production at all assets, to increase our export flexibility
reduce over-reliance on any one third-party operated export system. In line with this objective, we successfully commenced
evacuation through the AEP export route during the third quarter of 2022. Crude oil production from OMLs 4, 38 and 41 is
now sent via the Trans Forcados Pipeline (TFP) and AEP, with significant volumes now flowing through the latter. For a
third export route, we intend to establish regular exports of 10,000 bopd (gross) through the Warri Refinery jetty, from
which it will be sold FOB to our off-taker at the jetty. We intend to keep this option available for the foreseeable future.
All three export routes will provide significant flexibility and ensure we have adequate redundancy in evacuation routes,
significantly reducing downtime to promote higher levels of revenue assurance and profitability.
For OML 53, we have engaged with our J.V. partner NUIMS (formerly NAPIMS) and the NUPRC to operationalise an
alternative evacuation option of trucking for the Jisike and Ohaji South fields in OML 53, and we will commence a pilot test
when approvals are secured.

At OML 40, the partners are exploring the potential of barging operations to evacuate liquids from the Gbetiokun fields to
the LEC floating storage and offloading facility (FSO) to mitigate the impact of increasing FOT/TEP unavailability.
Towards a permanent solution, the partners have begun constructing a pipeline from Gbetiokun to Adagbassa to replace
the more expensive barging operation that we currently run. The 30cm x 30km pipeline will take produced crude from the
Gbetiokun field in OML 40 to the Adagbassa manifold, from where the pipeline will tie into the existing 36km Opuama-
Otumara export pipeline.
Midstream Gas performance

Seplat is a leading supplier of processed natural gas to the expanding Nigerian domestic market. Working interest gas
volumes for the period averaged 112.3 MMscfd (2021: 107.9 MMscfd), a contribution of 44% of the Group's total production
volume on a boe basis. Our gas business was affected by the outages on the TFP because of the limited liquid handling
capacity for condensate produced alongside the gas.
Gas contracts and pricing

During the period, we signed short-term gas sales agreements (GSAs) with three new customers, for a combined offtake
of 86 MMscfd. As a result, Seplat now has a total of eight GSAs for the supply of 396 MMscfd of gas.
In addition, we concluded price renegotiation with customers during the second quarter, and following the DGDO gas
pricing revision in August 2021, the average gas price achieved was $2.82/Mscf (2021: $2.85/Mscf), which is weighted
against volumes supplied to each customer in the periodThe gas sold under the new GSAs (mentioned above) at more
favourable terms offset the impact of the lower gas prices realised at the first half of the year.
Midstream Gas business separation from Upstream

The decision to convert to the PIA regime considered the implications for our Midstream Gas business. In line with the
provisions of the PIA, we believe the Midstream gas business could achieve a higher value when operated as a separate,
standalone unit, independent of our Upstream business. This will unlock new value for the Company and increase returns
for stakeholders. An implementation roadmap for the spin-out opportunity has been developed and the process is expected
to take 12 to 18 months, subject to regulatory approval and stakeholder engagement.
Additional third-party volumes

We are focused on developing third-party gas resource opportunities that can utilise the remaining processing capacity at
Oben. Securing additional volumes from counterparties will secure long-term supplies of raw natural gas from which we
can maximise the plant's utilisation and generate tolling revenues. We progressed discussions with targeted third-party
gas producers during the year and are finalising contracting to facilitate a tripartite gas development workshop with three
producers.
ANOH Gas Processing Plant

To date, the IJV (AGPC) has achieved 95% overall mechanical project completion at the gas plant site, and we expect the
plant to be mechanically complete in Q2 2023. Our government partner, NGIC, is delivering the pipelines that will take the
gas from ANOH to the demand centres, namely the 23km spur line and the Obiafu-Obrikom-Oben (OB3) pipeline.
The OB3 pipeline has been affected by the collapsing of the HDD wall in a section of the river crossing. Experts from the
UK have been brought in to ‘grout’ the section and grouting will commence in March with the drilling and pipe installation
to commence thereafter. NGIC has confirmed that they expect the pipeline to be complete before the end of Q2 2023.
Line pipes for the 23km spur line are in country and project completion is almost 70%, with the revised completion date
communicated by NGIC as 30 June 2023.
Despite estimated completion for the pipeline infrastructure being Q2 2023, we have further risked the completion dates
and have moved the first gas to the final quarter of 2023. Once completed, ANOH will deliver two income streams for
Seplat Energy: from OML 53’s wet gas sales to the plant, and from dividends returned to Seplat Energy from the joint
venture ANOH Gas Processing Company, which will operate the plant.
The upstream development, including the drilling of six production wells, will be delivered by the upstream unit operator
SPDC. We expect the drilling of ANOH-03 and ANOH-04 by SPDC to be completed in Q2 2023.
Sapele Gas Plant

Work continues on the new Sapele Gas Plant, with project progress at 60%. Upon completion, the processing capacity will
be 85 MMscfd. The upgraded facility will produce gas that meets export specifications, and the LPG processing unit module
will enhance the economics of the plant and reduce routine gas flaring. During this period, we accelerated the installation
of A.G. Compressors to reach mechanical completion, and we have commenced commissioning activities to meet our
target to end routine flares by the end of 2024.

New Energy business
At our Capital Markets Day in 2021, we announced our intention to invest in opportunities that will capture more value
across the entire energy value chain, including renewable energy generation, on a medium to large scale.
We have completed evaluation studies and finalised a ten-year integrated Gas and New Energy Investment Plan. Near-
term opportunities we have identified in gas-to-power and solar energy will be subject to technical and business evaluation
assessments, environment and social impact assessments, and project licensing, and we expect to move to FID before
the end of 2023. The key investment opportunities being considered include selective entry to off-grid power generation
using gas-fired generation integrated with solar. Natural gas will be the mainstay of our energy transition programme and
this in turn will ensure the sustainability and financial viability of the renewables program. We are also pursuing carbon
offset possibilities on a wide range of emission reduction activities in various global carbon markets. The identified
opportunities have considered advancement in technology, availability of resources within Nigeria and feasibility of
execution.
Sustainability initiatives
First TCFD Report
Alongside our 2022 Annual Report we will publish a separate Sustainability Report and our first Climate Risk and Resilience
Report, which will include the disclosures recommended by the Task Force on Climate-related Financial Disclosures
(TCFD). These reports will describe our commitment to the environment and our approach to managing climate risk and
represent disclosure of initiatives within our corporate strategy to Build a sustainable business and Deliver energy
transition. In addition, the Corporate Scorecard for 2022 is tied to climate-related and other sustainability KPIs, which are
expressly linked to executive pay. ESG accounts for 15% of KPIs in 2022, and safety 10%.
HSE performance
Safe and responsible operations are critical to the delivery of Seplat Energy's strategy. Staff and contractors completed a
total of 8.6 million hours in the period, and there were 93 HSE incidents in total, compared to 88 in 2021.
After achieving 31 million hours with zero LTI recorded over the last four years, a non-operating incident was recorded in
October when a third-party contractor fractured his right leg while crossing the road during a community awareness
campaign. The contributing factors to the incident were determined, and lessons learned have been adopted to prevent
such accidents and expand the scope of safety beyond our operations.
During 2022 we updated our environmental policy and EMS manual in line with the ISO 14001 standard, as well as relevant
local, national, and international regulations, and industry best practice.
Despite an increase in the number of Tier 2 incidents from three to five (>0.75bbl or equivalent to 1kg) because of sabotage
to facilitate theft from the pipelines, the volume of operational oil spills decreased by 50% in 2022, and all spills were
remediated with limited environmental impact. Throughout our activities, we took proactive measures to protect biodiversity
and groundwater, and zero groundwater contamination was maintained.
During an internal process review, it was discovered that data pertaining to emissions sources contained discrepancies
caused by an inadequate accounting system. Therefore, we launched a new GHG Emissions Accounting System and
recalculated historical GHG emissions data. This exercise revealed a 49% overestimation of our GHG emissions for 2020
and 43% for 2021; the restated figures are 1.4 and 1.2 MMtonnes CO2 equivalent, respectively.
The Scope 1 and 2 emissions recorded for 2022 were 0.7 MMtonnes CO2 equivalent, resulting in a carbon intensity of
23.9kg/boe (2021: 36.6kg/boe), slightly above the upstream industry carbon intensity average of 18.9kg/boe (Oil & Gas
Climate Initiative).
LRQA Group (a leading global assurance provider) has independently verified the new GHG accounting system. The same
standards and methodologies in previous years were applied- API and IPPC.
Reducing our emissions towards Net Zero

Our primary commitment is to reduce our GHG emissions resulting from its direct operations. In addition, we have
established a broad set of investment activities designed to reduce emissions from its operated facilities and offset residual
emissions.
Our Flares Out project, which forms part of our commitment to achieving Net Zero by 2050, is on schedule to reach our
target of ending routine flares by the end of 2024. In 2022, improvements in performance of the AG compressor in Oben
and Amukpe, alongside regular asset integrity checks and other facility improvement activities, were effective and AG flare
volume was reduced by 18.2% at Oben (5.7mmscfd against 6.97mmscfd in 2021) and by 39.9% at Amukpe (1.1mmscd
against 1.83mmscfd in 2021).
The Sapele Gas Plant (AG solution) with installed capacity of 40 MMscfd achieved mechanical completion in December.
The AG solution is expected to process c.26 MMscfd and will make a significant contribution to flared gas utilisation,

reducing emissions and carbon intensity. In addition, we acquired an LDAR system at our Oben Gas Plant and trained 40
employees on use of the technology, which has enabled detection of invisible leaks and allowed our in-house O&M team
to act promptly.
Our diesel replacement programme seeks to increase the use of gas, a less carbon intensive fuel for power generation
and where feasible, solar power is also being considered. We are piloting solar at our Amukpe warehouse to power
equipment on site and plan to power the security outposts located around our operations using solar energy in 2023.
We have committed $11.5 million in 2023 towards projects that will end routine flares in our operations, including $10.8
million towards installing gas compression facilities at the flow stations in Amukpe, Oben and Sapele, and $0.7 million
towards incineration at the Amukpe flow station.
Upon completion of these projects, we expect to improve our gas handling capacity and reduce flares by c.30 MMscfd in
2023 and c.20 MMscfd in 2024, which will in turn monetise flare gas in line with our corporate strategy and the national
flare gas commercialisation initiative. In addition, we have committed $1 million towards planting trees across Nigeria as
part of afforestation efforts that will capture residual emissions. Our focus in 2023 will be on mobilising community
stakeholders and completing land acquisition to enable the commencement of tree planting in Imo, Edo and Abuja.
Focus on asset integrity

At the core of our operations is a focus on asset integrity, process safety management and maintenance culture to ensure
and improve our facilities' safety, reliability, and availability. This focus also promotes higher revenue assurance and
contributes to our cost savings initiatives. Our goal, through various asset integrity initiatives, is expected to reduce
deferment by c.120kbbl annually and end routine flares, increasing revenue assurance and profitability in line with our
defined strategic priorities.
Projects completed in the period included the Oben Gas Plant life extension project to restore health to the plant's old
modules and extend life by a minimum of 15 years, and the sectional re-routing of 5.1km x 10" Sapele to Amukpe trunkline
to reduce the risk of pipeline failure on a heavily encroached right of way and extend the life span of the pipeline.
Seplat Energy was awarded the ISO 55001 Asset Management certification and is now subject to annual surveillance
audits in April 2023 and 2024 and a recertification audit in April 2025 in line with ISO 55001 3-yearly certification renewal
cycle. These audits will test how we can effectively sustain and continually improve our asset management system. In
addition, the tests will encourage a continuous improvement drive in all our asset management processes to ensure that
our asset management system remains aligned with the ISO 55001 Standard in readiness for all future
surveillance/recertification audits. Improving asset management systems will enable us to operate our assets more
effectively and at higher rates of return.
Proposed acquisition of MPNU

On 25 February 2022, we announced that we have entered into a Sale and Purchase Agreement (subject to ministerial
and other regulatory approvals) to acquire the entire share capital of MPNU for a purchase price of $1,283 million plus up
to $300 million contingent consideration, subject to the lockbox, working capital and other adjustments at closing relative
to the effective date. The transaction encompasses the acquisition of the entire offshore shallow water business of
ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track
record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids).
On 8 August 2022, we announced that we had received a letter from the Honourable Minister of State for Petroleum
Resources that His Excellency President Muhammadu Buhari had approved that Ministerial Consent be granted for the
acquisition of MPNU. Accordingly, the approval was given by His Excellency President Muhammadu Buhari in his capacity
as the Honourable Minister of Petroleum Resources, granting Ministerial Consent according to the powers of the Minister
under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969.
On 10 August 2022, we noted speculation in local media about a withdrawal of the Ministerial Approval of the proposed
acquisition. However, the Sales & Purchase Agreement remains valid and we remain confident that the transaction will be
approved. We continue to work with all parties to achieve a successful outcome and will provide further updates as
appropriate.
Outlook
Seplat Energy’s long-term outlook is positive, with the AEP now operating as expected and the ANOH Gas Processing
Plant due to come onstream in the final quarter of this year. Full-year production guidance for 2023 is set at 45,000 to
55,000 boepd on a working interest basis. This guidance does not include any expected contribution from MPNU or ANOH.
Capital expenditure for 2023 is expected to be around $160 million, and we plan to drill 18 new wells across our operated
and non-operated assets as follows:
• OMLs 4, 38 & 41: Eight wells (Three oil wells, three gas wells, one water disposal well and one exploration well)
• OML 53: One oil well;
• OML 40: Five wells (Four oil wells and one appraisal well; Abiala: Development of one workover and one oil
well);
• ANOH: Two gas wells.

The 2023 drilling programme will address production decline and, along with the completion of maintenance activities, will
support long-term production levels from the assets. Facilities and engineering projects will focus on completing an
upgraded integrated gas processing facility at Sapele. The year under review showed the importance of the sustainability
of our evacuation options, and we will prioritise alternative route projects in 2023.
Achieving our ESG performance targets is a primary focus for 2023, and in our climate strategy, where we have committed
to being carbon neutral in 2050, ending routine flares by the end of 2024 is a priority. We plan to complete the Oben,
Amukpe, Sapele & Jisike Flares Out projects, which will capture and monetise gas for productive use and significantly
reduce our carbon intensity. In addition, we plan to contribute to the growth of our communities by equipping hospitals and
schools with reliable power and, in return, progress our goal to increase access to energy while developing our power and
renewable capabilities on socially important projects.
We will exercise discretion over drilling investments and selectively consider opportunities in our existing portfolio, focusing
on delivering the highest cash return whilst diligently preserving a strong balance sheet.
The Board is confident in the future prospects of the business, underpinned by its strong balance sheet, and reflecting this
confidence the Board has decided to approve the payment of a special dividend of US5 cents to shareholders, in addition
to the final dividend of US2.5 cents.

Financial review
Revenue
Revenue from oil and gas sales in 2022 was $951.8 million, a 29.8% increase from the $733.2 million achieved in 2021.
Crude oil revenue was 35.8% higher than for the same period in the previous year at $839.5 million (2021: $618.4 million),
reflecting higher average realised oil prices of $101.7/bbl. for the period (2021: $70.5/bbl.). The increase is attributable to
the impact of the conflict in Ukraine on global energy prices and the steady post-pandemic recovery in global oil demand,
particularly in China and the United States. The total volume of crude lifted in the period was 8.3 MMbbls, 6.8% lower than
the 8.9 MMbbls lifted in 2021. The lower volumes lifted in 2022 resulted from a drop in production output, especially in the
third quarter, because of the prolonged unavailability of the export terminals. However, significant improvements were
made in Q4 2022 as we began to evacuate the bulk of our crude through the newly operational Amukpe-Escravos
underground pipeline. The average reconciliation loss factor for the Group was 10.7%.
Gas sales revenue declined marginally by 2.1% to close the year at $112.5 million (2021: $114.8 million) because of
weaker average realised gas prices following price reviews conducted in the second quarter of the year, down 1.1% to
$2.82/Mscf (2021: $2.85/Mscf). Nevertheless, gas sales volumes improved despite the effect of oil evacuation curtailments
and increased 4.1% to 41.0 Bscf, compared to 39.4 Bscf in 2021.
Gross profit
Gross profit increased by 63.0% to $464.7 million (2021: $285.2 million) and benefitted from higher realised oil prices.
Non-production costs consisted primarily of $180.8 million in royalties, which was higher compared to $129.8 million in
2021 because of higher oil prices, and DD&A of $128.7 million, which was lower compared to $141.1 million in 2021,
reflecting lower depletion of reserves because of decreased production compared to the prior year.
Direct operating costs, which include crude-handling fees, barging/trucking, operation and maintenance costs, amounted
to $166.1 million in 2022, 3.1% lower than the $172.1 million incurred in 2021. However, on a cost-per-barrel equivalent
basis, production opex was $10.3/boe, 4.4% higher than the $9.9/boe incurred in 2021, primarily because of the effect of
lower produced volumes, an excess storage charge on use of the Escravos terminal, and the higher cost of crude handling
on the AEP, when compared to the TFP.
Operating profit
The operating profit for the period was $274.7 million, an increase of 9.6%, compared to $250.7 million in 2021.
The Group recognised a financial asset charge of $6.4 million related to the ageing of some government receivables, which
is expected to reverse once recoveries are secured. Included in other income was a $13.1 million loss on disposal for the
sale of the Ubima field. In addition, there was an over-lift charge of $27.2 million, representing 263 kbbl. and a $1.1 million
loss on foreign exchange, principally due to the translation of Naira, Pounds and Euro-denominated monetary assets and
liabilities.
General and administrative expenses of $137.4 million were 71.5% higher than the 2021 costs of $80.1 million. The
increase was driven by the impact of global inflationary trends on expenses, including travel and training costs (activities
having increased following the relaxation of travel restrictions), increased spending on professional and consulting fees
associated with business growth strategies and the upward adjustments to staff salaries and emoluments to reflect the
true cost of living. The bulk of the staff costs are denominated and paid in Naira but translated in the financial statements
at the NAFEX currency exchange rate, which does not reflect fully the macroeconomic reality of the strength of the Naira
against the USD. A correction downwards in the exchange rate will lower the USD reported costs accordingly.
After adjusting for non-cash items, which include impairment and exchange losses, the EBITDA of $416.9 million, equates
to a margin of 43.8% for the period (2021: $371.8 million; 50.7%).
Taxation
The income tax expense of $99.7 million includes a current tax charge (cash tax) of $67.7 million and a deferred tax charge
of $32.0 million. The deferred tax charge is driven by the unwinding of previously unutilised capital allowances and
movements in underlift/overlift in the current year. The effective tax rate for the period was 49% (2021: 34%). The higher
tax this year resulted from higher taxable profit due to higher oil prices.
Effective tax rate analysis Income tax expense Tax rate

Current Deferred Total ETR Current
Profit before tax ($’million)
(Effective Tax Rate) Tax rate
204.4 67.7 32.0 99.7 49% 33%

Net result
The profit before tax was 15.2% higher at $204.4 million (2021: $177.3 million). The profit for the year was $104.7 million
(2021: $117.2 million) with a resultant basic earnings per share of $0.11 in 2022, compared to $0.24 per share in 2021.
Cash flows from operating activities

Cash generated from operations in 2022 was $571.2 million, 51.6% higher than $376.8 million generated in 2021. Net cash
flows from operating activities were 41.6% higher at $497.3 million (2021: $352.3 million) after accounting for tax paid of
$57.5 million (2021: $13.0 million) and a hedging premium of $10.3 million (2021: $9.0 million). The Group continued to
record improvements in the recovery of receivables from the major JV partner and, in 2022, received $259 million towards
the settlement of cash calls. As a result, the major JV receivable balance now stands at $91 million (2021: $83.9 million);
these are mainly cash calls owed within the last 60 days and are expected to be settled within Q1 2023. As of February
2023 we have received more than $70 million as part settlement of the 2022 outstanding amounts.
Cash flows from investing activities

Net capital expenditure of $163.3 million included $94 million invested in drilling and $64 million in oil and gas engineering
projects.
Deposits for investment of $140.3 million include a $128.3 million (which is refundable) deposit for the proposed acquisition
announced in February 2022 of Mobil Producing Nigeria Unlimited and the $12.0 million farm-in fee for the Abiala marginal
field carved out of OML 40.
The Group received total proceeds of $10.8 million in the period under the revised OML 55 commercial arrangement with
BelemaOil for the monetisation of 298.4 kbbls of crude oil. In 2022, recovery was affected by sabotage along the Nembe
Creek Trunk Line and the Trans Niger Pipeline, with theft factors ranging from 30% to 90%.
Cash flows from financing activities

The Company paid $58.8 million dividends to shareholders in the period. Other financing charges of $12.5 million reflect
the commitment fee and other transaction costs on the Group’s facilities, and $63.3 million reflects interest paid on loans
and borrowings.
Liquidity
The balance sheet remains healthy with a solid liquidity position.
Net debt reconciliation at 31 December 2022 $ million Coupon Maturity

Senior notes* 666.8 7.75% April 2026
Westport RBL* 8.2 SOFR rate+8% March 2026
Off-take facility* 95.2 SOFR rate+10.5% April 2027
Total borrowings 770.2
Cash and cash equivalents (exclusive of restricted cash) 404.3
Net debt 365.9
* including amortised interest
Seplat Energy ended the year with gross debt of $770.2 million (with maturities in 2026 and 2027) and cash at bank of
$404.3 million, leaving net debt at $365.9 million. The restricted cash balance of $23.9 million includes $8.0 million and
$12.5 million set aside in the stamping reserve and debt service reserve accounts for the revolving credit facility; in addition
to $0.8 million and $1 million for rent deposit and unclaimed dividend, respectively. We monitor the gearing ratio with the
objective to maintain a net debt to gearing ratio of 20%-40%. The ratio for 2022 was 17% (2021: 21%).
Refinancing of the $350 million revolving credit facility (RCF)

On 30 September 2022, Seplat Energy Plc refinanced its existing $350 million revolving credit facility due in December
2023 with a new three-year $350 million revolving credit facility due in June 2025. The RCF includes an automatic maturity
extension until December 2026 once a refinancing of the existing $650 million bond due in April 2026 is implemented. The
RCF is scheduled to reduce from July 2024, with such date automatically extended to July 2025 once the existing

$650million bond is refinanced. The RCF carries an initial interest of 6% over the base rate (SOFR plus applicable credit
adjustment spread), with the margin reducing to 5% after production flowing through the Amukpe-to-Escravos pipeline is
stabilised at an average working interest production of at least 15,000 bopd over a period of 45 consecutive days, which
was achieved on 1 February 2023 The pricing is in line with the current RCF pricing, although it reflects a change in the
base rate from LIBOR to SOFR plus the applicable credit adjustment spread.
Final and Special Dividend

Board has recommended a final dividend of US2.5 cents per share for the financial year 2022 and following a review of
Seplat’s operational, liquidity and financial position post refinancing the Board has decided to declare an additional special
dividend of US5.0 cents per share to be paid after approval at the Annual General Meeting, which will be held in Lagos,
Nigeria, on 10 May 2023. This brings the total dividend declared for 2022 to US15 cents per share (2021: US10 cents per
share). The payment of the special dividend reflects the Board’s confidence in the future of the business and is underpinned
by a strong balance sheet.
Hedging
Seplat’s hedging policy aims to guarantee appropriate levels of cash flow assurance in times of oil price weakness and
volatility. The total volume hedged in 2022 was 7.5 MMbbls, and the current program consists of dated Brent put options
of 3.0 MMbbls at an average premium of $1.07/bbl. Additional barrels are expected to be hedged for 2023 in the coming
months in line with the approach to target hedging two quarters in advance. The Board and management team closely
monitor prevailing oil market dynamics and will consider further measures to provide appropriate levels of cash flow
assurance in times of oil price weakness and volatility.
Oil put options Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Volume hedged (MMbbls) 2.0 2.0 2.0 1.5 1.5 1.5
Price hedged ($/bbl.) 52.5 55 57.5 65 50 50
Conversion to PIA fiscal regime

The Petroleum Industry Bill was signed into law on 16 August 2021 and provides for the voluntary conversion of existing
prospecting licenses and mining leases to the terms of the PIA within 18 months, i.e., February 2023 or at the expiration
of such licenses and leases.
In October 2022, following the Group’s review of the fiscal provisions of the PIA, Seplat West Limited (OMLs 4, 38 & 41)
and Seplat East Onshore Limited (OML 53) together with their respective joint venture partners (NEPL and NNPCL) made
provisional applications to NUPRC “the Commission” for the voluntary conversion of operated Oil Mining Leases according
to section 92 and 93 of the PIA in October 2022. NEPL, the operator of OML 40, together with Elcrest, also made a
conversion application.
The pursuit of conversion was based on our assessment of the new PIA fiscal terms, specifically the improved oil and gas
royalty structure and rates, tax system and introduction of production-based allowance, all of which resulted in an overall
net favourable position for Seplat Energy.
In fulfilment of section 92 (4) – (6) of the PIA, Seplat executed the conversion contract on 15 February 2023, which confers
on applicants the right but not an obligation to complete the conversion to the PIA. The contract includes a longstop date
of 30 April 2023 (or any later date agreed by the Commission), by which time key regulations and guidelines are expected
to be issued by the Commission, and all conversion conditions have either been satisfied by the applicant or waived
(“effective date”). Ministerial approval of the conversion of OMLs/OPLs to PMLs/PPLs will remain subject to meeting all
Conditions Precedent.
Seplat continues to monitor the regulatory landscape ahead of 30 April and reserves the right to withdraw or amend the
application following when the full scope of the PIA’s impact on its assets is assessed.
Credit ratings
Seplat maintains corporate credit ratings with Moody's Investor Services (Moody’s), Standard & Poor's (S&P) Rating
Services and Fitch. The current corporate ratings are as follows: (i) Moody’s Caa1 (stable); (ii) S&P B (stable) and (ii) Fitch
B- (stable).
The Group’s substantial exposure to the Nigerian operating environment led to a downgrade by Fitch and Moody’s, in
November 2022 and February 2023 respectively, as both agencies downgraded the Sovereign. Fitch downgraded Seplat
Energy Plc's Long-Term Issuer Default Rating (IDR) and senior unsecured rating to 'B-' from 'B', and Moody's downgraded
the ratings to Caa1 from B3.

General information
Board of Directors
Basil Omiyi Independent Chairman Nigerian

Roger Brown Chief Executive Officer British
Emeka Onwuka Chief Financial Officer / Executive Director Nigerian
Samson Ezugworie Chief Operating Officer / Executive Director (Joined 1/7/22) Nigerian
Kazeem Raimi Non-Executive Director (Joined 18/05/22) Nigerian
Olivier De Langavant Non-Executive Director French

Nathalie Delapalme Non-Executive Director French
Ernest Ebi Non-Executive Director (Joined 18/05/22) Nigerian
Charles Okeahalam Senior Independent Non-Executive Director Nigerian
Bashirat Odunewu Independent Non-Executive Director (Joined 18/05/22) Nigerian
Fabian Ajogwu, SAN Independent Non-Executive Director Nigerian
Bello Rabiu Independent Non-Executive Director Nigerian
Emma FitzGerald Independent Non-Executive Director British
Koosum Kalyan Independent Non-Executive Director (Joined 28/02/23) South African
ABC Orjiako Chairman (Retired 18/05/22) Nigerian
Austin Avuru Non-Executive Director (Retired 01/03/22) Nigerian
Effiong Okon Operations Director/Executive Director (Retired 31/07/22) Nigerian
Arunmah Oteh, OON Independent Non-Executive Director (Retired 31/12/22) Nigerian
Company Secretary Edith Onwuchekwa
Registered office and business 16A Temple road (Olu Holloway)
Address of Directors Ikoyi, Lagos, Nigeria
Registered number RC No. 824838
FRC number FRC/2013/NBA/00000003660
PricewaterhouseCoopers
Auditor Landmark Towers, 5b Water Corporation Road
Victoria Island, Lagos,
DataMax Registrars Limited
2c Gbagada Expressway
Registrar Gbagada Phase 1,
Lagos
Nigeria
Aelex
Allen & Overy LLP
Anaka Ezeoke & Co
Ashurt LLP
Bracewell (UK) LLP
Solicitors Fidelis Oditah & Co.
Mas Tax & Legal
Olaniwun Ajayi LP
Streamsowers & Kohn
Templars
Udo Udoma & Belo-Osagie

White & Case LLP
Wole Olanipekun
Citibank, N.A.
Nedbank Limited
The Standard Bank of South Africa Limited
Stanbic IBTC Capital Limited
FirstRand Bank Limited
The Mauritius Commercial Bank Ltd.
Bankers
J.P. Morgan Securities PLC
Standard Chartered Bank
Natixis
Zenith Bank PLC
United Bank for Africa PLC
First City Monument Bank Limited

Report of the Directors
The Directors are pleased to present to the shareholders of the Company their report with the audited financial statements
for the year ended 31 December 2022.
Principal activity
The Company is principally engaged in oil and gas exploration and production.
Operating results
₦ million $’000
2022 2021 2022 2021
Revenue 403,913 293,631 951,795 733,188
Operating profit(loss) 116,589 100,401 274,740 250,688
Profit before taxation (loss) 86,730 71,028 204,376 177,345
Profit for the year (loss) 44,433 46,931 104,706 117,176
Dividend
During the year, the Directors recommended and paid to members quarterly interim dividends of US2.5cents per share,
declared in April, July and October in line with our normal dividend distribution timetable. In addition to this, the Board of
Seplat is recommending a final dividend of US2.5 cents per share and a special dividend of US5.0cents per share. The
dividends are subject to approval of shareholders, at the AGM which will be held on 10 May 2023 in Lagos, Nigeria.
Unclaimed dividend
The total amount outstanding as at 31 December 2022 is US$1,055,308.75 and ₦559,512,420.73. A list of shareholders
and corresponding unclaimed dividends is available on the Company’s website: www.seplatenergy.com
Changes in property, plant and equipment

Movements in property, plant and equipment and significant additions thereto are shown in Note 16 to the financial
statements.
Shareholder engagement
At the Company's 2022 Annual General Meeting held in May, resolutions 5(b)(i) and 5(b)(ii), concerning the re-election of
Directors, were passed with the necessary majorities (79.51% and 79.18%, respectively), however, Resolution 5(b)(i)
received 20.49% of votes against and Resolution 5(b)(ii) received 20.82% of votes against the resolution. Therefore, the
Board is required by Provision 1.D.4 of the 2018 U.K. Code of Corporate Governance, which Seplat Energy has voluntarily
adopted, to provide an update on the views received from shareholders.
In response, the Chairman proactively undertook a series of meetings with leading shareholders to assure them of the
Company's ongoing commitment to achieving high standards of corporate governance, noting that recent developments
included the transition to an Independent Chairman and the addition of new Board members.
Rotation of Directors
In accordance with the provisions of Section 285 of the Companies and Allied Matters Act, 2020, one third of the Directors
of the Company shall retire from office. The Directors to retire every year shall be those who have been longest in office
since their last election.
However, in accordance with Article 131 of the Company’s Articles of Association, the Executive Directors and any Director
appointed by a Founder Shareholder shall not be subject to retirement by rotation or taken into consideration in determining
the number of Directors to retire each year. Apart from the Executive Directors and Directors appointed by the Founder
Shareholders, all other Directors are appointed for fixed terms and are eligible for re-appointment/retirement by rotation.
The Directors who are eligible for re-appointment this year are Madame Nathalie Delapalme and Mr. Bello Rabiu.

Board changes
The Pioneer Chairman and co-founder, Dr. A.B.C Orjiako stepped down as Chairman and from the Board of Directors of
Seplat Energy Plc in May 2022. As Chairman of the Group since 2009, Dr. Orjiako led the transformation of Seplat into a
globally respected energy Company. Notable achievements include instilling best practice corporate governance, and
significant growth through several successful acquisitions. He was also the driving force behind Seplat Energy becoming
the first and only Nigerian corporate to dual list on the Nigerian Exchange and the Main Board of the London Stock
Exchange in 2014.
The Board of Seplat Energy PLC is pleased to announce that Mr. Basil Omiyi, CON, was appointed the Company's new
Independent Non-Executive Chairman, effective 18th May 2022. His appointment followed a thorough assessment of
internal and external candidates and was approved after a unanimous vote by all the Directors of Seplat Energy, in
compliance with the Companies and Allied Matters Act in Nigeria ("CAMA"). Mr. Basil Omiyi has been a member of Seplat
Energy's Board of Directors since March 2013 and as the Senior Independent Non-Executive Director from 1 February
2021. During this period, he chaired the Company's Energy Transition and Risk Management & HSSE Committees and
sat on the Remuneration, and Nominations & Governance Committees.
Mr. Omiyi spent most of his career years at the Royal Dutch Shell Group where he held various technical leadership roles
in Nigeria as well as in the UK and the Netherlands. On return to Nigeria in 1992, Mr. Omiyi held many leadership roles as
Production Manager, Director of External Relations and Environment and later Country Production Director. As Country
Production Director, Mr. Omiyi managed installed production capacity of over 1.4 million barrels per day oil and circa 2
billion standard cubic feet per day of gas from about 100 plants across the Niger Delta. He was subsequently appointment
the Managing Director of The Shell Petroleum Development Company of Nigeria Ltd in 2004 thus becoming the first
indigenous Managing Director of an International Oil Company in Nigeria and later in addition, became the Chairman of
Royal Dutch Shell Companies in Nigeria until he retirement in 2009. He is also currently the Chairman of Stanbic IBTC
Holding Plc, and TAF Nigeria Homes Ltd. He has held several Oil and Gas leadership positions in his esteemed career
including Chairman, Upstream Industry Group-OPTS (Oil Producers Trade Section, Lagos Chambers of Commerce &
Industry) 2007 - 2010. Chairman of the Energy Sector of NEPAD Business Group, Nigeria, and Board Member NEPAD
Business Group, Nigeria 2005 - 2010, Chairman, of the Oil & Gas Commission of the Nigerian Economic Summit Group
(NESG) 2005-2010, Board Member, Nigerian Extractive Industry Transparency Initiative- NEITI, 2007 - 2010, Chairman;
Shell Closed Pension Fund Administrator Limited, 2004-2010 and President Nigeria-Netherlands Chamber of Commerce,
2008 - 2010. Mr. Omiyi is a Fellow of many professional bodies, including The Petroleum Institute, UK, FEI, The Nigerian
Mining and Geoscience Society, FNMGS, The Nigeran Association of Petroleum Explorationist, FNAPE, and The
Chartered Institute of Arbitrators of Nigeria, FCIArb. Mr. Omiyi was awarded with National Honour of Commander of the
Order of the Niger, CON in 2011 in recognition of his pioneering role in Oil and Gas Industry leadership in Nigeria. He
studied the University of Ibadan from 1965 to 1970 where he obtained a Bachelor of Science degree in Chemistry in 1969
and a Post-graduate Diploma in Petroleum Technology in 1970 after which he joined the then Shell-BP Petroleum Ltd in
1970 as a Wellsite Petroleum Engineer. Mr. Omiyi has extensive insight into and experience in the global oil and gas
industry and in particular brings a detailed knowledge and understanding of the Nigerian oil and gas sector together with
senior management expertise gained in a large-scale multinational organisation.
With his appointment as the new Board Chairman, Dr. Charles Okeahalam was appointed the Senior Independent Non-
Executive Director effective 18th May 2022. Dr. Charles Okeahalam joined the Board in March 2013 as an Independent
Non-Executive Director and is Chairman of Seplat Energy's Board Finance & Audit Committee, a member of the Energy
Transition, Remuneration, and Nominations & Governance committees. Dr. Okeahalam Okeahalam is a co-founder and
Chairman of AGH Group, a private equity and diversified investment holding company with assets in several African
countries. Prior to co-founding AGH Group in 2002, he was a professor of corporate finance and banking at the University
of the Witwatersrand in Johannesburg. His other roles have included advising a number of African central banks and
government ministries, the World Bank and the United Nations. He has held board positions in several companies including
ABSA, South African Airways, Sun International and is a former non-executive chairman of Heritage Bank Limited, Nigeria
and non-executive chairman of the Nigeria Mortgage Refinance Company. Charles Okeahalam is a distinguished
economist and has received several awards including a Senior Fellowship of the Bank of England for his work primarily on
econometric analysis of financial systems in Africa. He is currently a Visiting Professor of Practice at the London School of
Economics and Political Science (LSE). Charles is involved in philanthropy and currently serves as the chairman of the
board of directors of AMREF Health Africa. He brings extensive corporate finance, banking and capital markets expertise
and experience to the Board.
The Board of Seplat Energy is also pleased to welcome Mrs. Bashirat Odunewu (Independent Non-Executive Director),
Mr. Ernest Ebi (Non-Executive Director) and Mr. Kazeem Raimi (Non-Executive Director) whose appointments were
effective on 18 May 2022. These Directors bring vast knowledge in important areas such as the energy sector, finance and
commercials. Seplat Energy looks forward to the immense contribution they will make towards its continuing global
success.
Mrs. Odunewu is a is a Banking and financial expert with about 30 years’ experience in the Finance and Banking Industry.
Up till June 2021, she served as C-Suite executive, corporate banking (Energy, Natural Resources & Infrastructure), at
First Bank Nigeria Ltd, prior to which she was the line executive for their international banking group where she supervised
CEOs of the subsidiaries of First Bank in 6 African countries as well as the Bank’s Representative office in China and

served as a board member for several of them. She is a business development veteran, well versed in business strategy
with over 10 years hands-on experience at C-suite Executive Management level, an alumnus of Imperial College
(University of London) and University of Manchester. Mrs. Odunewu is a Chartered accountant (FCA) and a certified
member of the Chartered Institute of Arbitrators-UK (MCIArb). She is also a member of various reputable professional
associations including the Chartered Institute of Bankers Nigeria (CIBN) and Institute of Directors (IoD). Mrs. Odunewu
currently serves as an INED on the board of Leadway Holdings and as a Non-Executive Director (NED) on the Boards of
some African Subsidiary Banks of First Bank Nigeria. She is also a member of the Board of Directors for the Franco-Nigeria
Chamber of Commerce and Industry where she serves as the Treasurer. Mrs. Odunewu has experience spanning
audit/accounting, corporate & commercial banking, Investment banking and treasury in various financial institutions. She
has specialized in Oil and Gas financing projects and led notable successful syndications for acquisitions and development.
She has been the recipient of several Merit Awards in the organizations she has worked for in recognition of her stellar
performance. Mrs. Odunewu is passionate about supporting younger ones towards fulfilling their aspirations and is a
mentor/sponsor to many in this regard.
Mr. Kazeem Raimi joined as a Non-Executive Director and is a nominee of Platform Petroleum Limited replacing Mr. Austin
Avuru who stepped down from the Board of Seplat Energy on March 01, 2022. Mr. Raimi is presently the Executive Director,
Commercial for Platform Petroleum Limited. Previously with Seplat Energy as General Manager, Commercial, Mr. Raimi
was charged with the responsibility for driving commercial, economics, valuation, planning and treasury activities across
the entire organisation. He also served previously as Manager, Corporate Planning and Economics at Seplat Energy. Mr.
Raimi has extensive experience in project economics and risk analysis having been Lead Petroleum Economics and
Commercial Advisor at Addax Petroleum where he also served in different capacities in Nigeria and at the Head-Office in
Switzerland. He had significant involvement in commercial and economic evaluations of new ventures, farm-in and
company acquisition opportunities with a thorough appreciation of tax, fiscal issues and project economics especially as
they relate to Nigeria, Gabon, Iraq and Cameroon. Prior to this, Mr. Raimi served as Treasury Manager at Cadbury Nigeria
Plc and Audit Finance Analyst at Citibank Nigeria Limited. In addition to his role at Platform Petroleum Limited, Mr. Raimi
also serves as a Non - Executive Director at PNG Gas Limited, Egbaoma Gas Processing Company Limited and Ase River
Transport Company Limited. Mr. Raimi holds a First-Class Honors in Economics from the University of Ibadan, an MSc in
Oil and Gas Economics from the University of Dundee and has undertaken several courses including the Certificate of
Management Excellence at Harvard Business School.
Mr. Ernest Ebi joined as a Non-Executive Director, and is a nominee of Shebah Petroleum Development Company Limited
(BVI) replacing Dr. A.B.C Orjiako who will step down from the Board of Seplat Energy on 18th May 2022 after the Annual
General Meeting. Mr. Ebi is a seasoned professional whose vast experience in the banking and finance industry spans
over four (4) decades. He served as Deputy Governor of the Central Bank of Nigeria, Nigeria’s Reserve Bank from June
1999 to June 2009, where he covered the Policy and Corporate Services Directorates. Prior to this, Mr. Ebi held several
executive positions in the banking industry in Nigeria and the United States of America. He was the Deputy Managing
Director in Diamond Bank Ltd where he led the bank’s financial services marketing strategy & initiatives for new business
development amongst others. In 1995, he was appointed by the Central Bank of Nigeria and the Nigeria Deposit Insurance
Corporation as the Managing Director & CEO of New Nigerian Bank Plc. During his time at New Nigerian Bank Plc., he
was responsible for the development and implementation of a credible turn-around plan for the bank and contributed
significantly to the recovery of a huge portfolio of non-performing risk assets. Mr. Ebi has also held senior positions at the
International Merchant Bank, as the Assistant General Manager (credit & marketing department) and Assistant. General
Manager (Loan Review & Audit). Mr. Ebi served as the Boards Chairman of Fidelity Bank Plc (2016 – 2020) and AIICO
Pension Managers (2010-2021) and currently serves as an Independent Director on the Board of Dangote Cement Plc.,
Julius Berger Nigeria Plc., Coronation Capital Ltd, and Coronation Asset Management Ltd etc. Mr. Ebi is also a Fellow,
Chartered Institute of Bankers, FCIB and Fellow, Institute of Directors Nigeria (F.IOD). Mr. Ebi has a very distinguished
career within the Banking and financial services industry and has undertaken several leadership courses in Harvard
Business and Kennedy Schools, Oxford Said Business School and Columba University. He was awarded the National
Honour of Member of the Order of the Federal Republic (MFR) by the Federal Government of Nigeria in 2007 in recognition
of his meritorious service.
The Board of Seplat Energy is also pleased to welcome Mr. Samson Ezugworie, whose appointment as an Executive
Director and Chief Operating Officer was effective 1st July 2022.
Mr. Samson Ezugworie comes with over comes with over 30 years’ extensive industry experience, building a strong
reputation as a business, safety, ethical leader, and integrator. Prior to joining Seplat Energy, Mr. Ezugworie was the
General Manager Development and Subsurface with Royal Dutch Shell where he worked in Nigeria and Overseas for 25
years. He also served as a Director in Shell Exploration & Production Africa Limited (SEPA), The Shell Petroleum
Development Company of Nigeria Limited (SPDC) and Shell Nigeria Business Operations Limited (SNBO) whilst on this
Job. Mr. Ezugworie is a Fellow and has been an active member of Nigerian Association of Petroleum Explorationists
(NAPE) for over 25 years and has served the association in different capacities. He was the Port Harcourt chapter chairman
for 5 years. A member of NAPE advisory board in 2016/2017, Elections committee and NAPE @40 organising committees
among others. Mr. Ezugworie holds a bachelor’s degree in Geology from University of Nigeria, Nsukka. He is keen on
inspiring people and strong advocate for continuous improvement, work simplification to drive organisational efficiency and
productivity whilst leveraging digitalisation and technology.

The Board announces the appointment of Ms. Koosum P. Kalyan as an Independent Non-Executive Director of the
Company, who joins the Seplat Board with effect from 28th February 2023.
Ms. Koosum Kalyan is a South African businesswoman and economist whose career began in the Electricity Commission
in Melbourne Australia as an economist. She subsequently joined Shell South Africa as an economist and became a
member of the Shell Global Scenario Planning Team after which she embarked on her expatriate posting to Shell
International London for 9 years. The scope of her work included projects in Nigeria, Gabon, Mozambique, Tanzania; etc.
Ms. Kalyan assisted governments in transforming its energy policies and in joining the Extractive Industries Transparency
Initiative during her tenure at Shell and also assisted in digitising government institutions. She has served on the Boards
of several prestigious companies where she expertly contributed her wealth of knowledge to the progress of these
companies and was recently appointed the Chairperson of Control Risk for Southern Africa. Ms. Kalyan has a degree in
B. Com Law and a degree in Economics from the University of Durban Westville. She has also completed the Senior
Executive Management Program at London Business School and a Leadership Management Program at Shell Leadership
Institute.
The Co-founder and former Chief Executive Officer of the Board of Seplat Energy Plc., Mr. Austin Avuru, resigned as a
Non-Executive Director ("NED") from the Board of Seplat Energy on 1st March 2022.
Mr. Effiong Okon retired from the Board in July 2022. Mr. Okon was appointed as the Operations Director and Executive
Director in February 2018 and has since then invested his time, experience and skills in the growth of the Company. Mr.
Okon assumed a new position as the Director New Energy to lead the New Energy Directorate of the Company in July
2022, to significantly accelerate the development of the new energy business and advance the Company's agenda on
energy transition.
Ms. Arunma Oteh, OON also retired from the Board in December 2022. Ms. Oteh joined the Board in October 2020 as an
Independent Non-Executive Director.
During their time on the Board of Sepat Energy, the Directors diligently served the Board and made significant contributions
towards the growth of the Company during their tenure.
The appointment and removal or reappointment of Directors is governed by its Articles of Association and the Companies
and Allied Matters Act, 2020. It also sets out the powers of Directors.
Corporate Governance
The Board of Directors is committed to sound corporate governance and ensures that the Company complies with the
Nigerian and UK corporate governance regulations as well as international best practice. The Board is aware of the Code
of Corporate Governance issued by the Securities and Exchange Commission, the Nigerian Code of Corporate
Governance 2018, issued by the Financial Reporting Council of Nigeria and the UK Corporate Governance Code 2018,
issued by the UK Financial Reporting Council and ensures that the Company complies with them. The Board is responsible
for keeping proper accounting records with reasonable accuracy. It is also responsible for safeguarding the assets of the
Company through prevention and detection of fraud and other irregularities. In order to carry out its responsibilities, the
Board has established six Board Committees and the Statutory Audit Committee and has delegated aspects of its
responsibilities to them. All seven Committees have terms of reference that guide their members in the execution of their
duties, and these terms of reference are available for review by the public. All the Committees present a report to the Board
with recommendations on the matters within their purview.
Board Committees and Record of Attendance at Meetings

The Board met 11 times during the year and at least once every quarter in line with Section 12.1 of the SEC Code. Board
meetings were well attended with attendance of all Directors exceeding two-thirds as required by Section 12.2 of the SEC
Code. The record of attendance of Directors at Board meetings and that of its Committees in the year under review is
published herewith:
Board of Directors
No. of meetings in No. of times in
S/N Name the year attendance
1. A.B.C. Orjiako1 Chairman 8 8

Basil Omiyi, CON1 Senior Independent Non-Executive 11 11
2.
Director/Chairman
3. Roger Brown Chief Executive Officer 11 11
4. Emeka Onwuka Chief Financial Officer 11 11

5. Austin Avuru2 Non-Executive Director 4 0
6. Effiong Okon3 Operations Director 8 8

7. Samson Ezugworie3 Chief Operating Officer 3 3
8. Olivier Langavant Non-Executive Director 11 11
9. Nathalie Delapalme Non-Executive Director 11 11
Charles Okeahalam Independent Non-Executive 11 11
10. Director/Senior Independent Non-
Executive Director
Arunma Oteh, OON4 Independent Non-Executive 11 11
11.
Director
Fabian Ajogwu, SAN Independent Non-Executive 11 11
12.
Director
Bello Rabiu Independent Non-Executive 11 11
13.
Director
Emma FitzGerald Independent Non-Executive 11 11
14.
Director
Bashirat Odunewu5 Independent Non-Executive 3 3
15.
Director
16. Kazeem Raimi5 Non-Executive Director 3 3
17. Ernest Ebi, MFR5 Non-Executive Director 3 3
Meeting dates: 27 January; 11 February; 24 February; 25 February; 17 March; 12 April; 27 April; 18 May; 27 July; 12 September; and
25 October
1. On 18 May 2022, Dr. A.B.C Orjiako retired as Chairman and Director of the Board while Mr. Basil Omiyi was immediately elected as
the Chairman of the Board.
2. On 1 March 2022, Mr. Austin Avuru formally retired as a Director from the Board after he was recused from Board meetings following
his declaration of conflict.
3. On 1 July 2022, Mr Effiong Okon retired as the Operations Director of the Board and took up a new role as the Director, New Energy
while Mr. Samson Ezugworie joined the Board as the Chief Operating Officer.
4. On 31 December 2022, Ms. Arunma Oteh, OON resigned from the Board as an Independent Non-Executive Director.
5. On 18 May 2022, Mrs Bashirat Odunewu joined the Board as an Independent Non-Executive Director while Mr. Ernest Ebi and Mr.
Kazeem Raimi joined the Board as Non-Executive Directors.
Board Finance & Audit Committee

S/N Name No. of meetings in the year No. of times in attendance
1. Charles Okeahalam Chairman 5 5
2. Arunma Oteh, OON Member 5 4
3. Fabian Ajogwu, SAN Member 5 5
4. Bello Rabiu1 Member 2 2
5. Emma FitzGerald Member 5 5
6. Mrs. Bashirat Odunewu1 Member 3 3

Meeting dates: 23 February, 20 April, 19 July, 18 October, 22 November
Mrs. Bashirat Odunewu was appointed to the Board as an Independent Non-Executive Director on 18 May 2022. Mrs. Odunewu joined the
Board Finance & Audit Committee on 18 May 2022 and replaced Mr. Bello Rabiu on the Committee. Two of the Committee meetings took
place before this change.
Nomination and Governance Committee

1. Arunma Oteh, OON1 Chairman 6 6

2. Basil Omiyi, CON2 Member 4 4
3. Charles Okeahalam Member 6 6
4. Fabian Ajogwu, SAN3 Member/Chairman 6 6
5. Bashirat Odunewu4 Member 2 2

Meeting dates: 20 January, 29 March, 5 April, 25 April, 20 July, 18 October
1) Ms. Arunma Oteh, OON resigned from the Board effective 31 December 2022.
2) Mr. Basil Omiyi, CON resigned from the Committee upon appointment as Chairman of the Board of Seplat Energy on 18 May 2022.
3) Prof. Fabian Ajogwu, SAN was appointed Chairman of the Committee effective 1 January 2023.
4) Mrs. Bashirat Odunewu joined the Board as an Independent Non-Executive Director and a member of the Committee on 18 May 2022.
Remuneration Committee
1. Emma FitzGerald1 Chairman 10 10
2. Basil Omiyi2 Member 5 5
3. Charles Okeahalam3 Member 10 10
4. Fabian Ajogwu, SAN1 Member 10 10
5. Bello Rabiu4 Member 5 5
Meeting dates: 18 February, 20 April, 17 June, 23 July, 20 October

1) Independent Non-Executive Director.
2) Mr. Basil Omiyi ceased to be a member of the Committee on 18 May 2022, when he was appointed as an Independent Board Chairman.
He attended all five Committee meetings during his membership.
3) Dr. Charles Okeahalam became the Senior Independent Non-Executive Director (S.I.D) on 18 May 2022 following the appointment of
former S.I.D. Mr. Basil Omiyi as the Independent Board Chairman.
4) Mr. Bello Rabiu (independent Non-Executive Director) became a member of the Committee on 18 May 2022. He attended all five
Committee meetings from the date of his membership of the Committee.
Risk Management and HSSE Committee

1. Basil Omiyi1 Chairman 3 3
2. Bello Rabiu2 Chairman 5 5

(Successor)
3. Madame Nathalie Delapalme Member 5 5
4. Mr. Ernest Ebi3 Member 2 2
5. Mrs. Bashirat Odunewu3 Member 2 2
6. Effiong Okon4 Member 4 4
7. Samson Ezugworie4 Member 2 2
Meeting dates: 18 January, 24 February, 13 April, 13 July, 12 October

1) Mr. Basil Omiyi served as the Chairman of the Committee until 18 May 2022 when he was appointed as the Independent Non-
Executive Chairman of the Board. Following this appointment, Basil Omiyi ceased to be a member of the Committee.
2) On 18 May 2022, Mr. Bello Rabiu assumed the role of Chairman of the Committee.
3) On 18 May 2022, Mr. Ernest Ebi and Mrs. Bashirat Odunewu were appointed to the Board and the Committee as Non-Executive
Director and Independent Non-Executive Director, respectively.
4) On 1 July 2022, Mr. Samson Ezugworie was appointed as the Chief Operating Officer (“COO”) and took over from Mr. Effiong
Okon as the Executive Director/Member of the Committee.

Sustainability Committee1
1. Nathalie Delapalme Chairman 4 4
2. Arunma Oteh, OON1 Member 4 3
3. Fabian Ajogwu, SAN2 Member 2 2
4. Bello Rabiu Member 4 4
5. Kazeem Raimi3 Member 2 2
6. Ernest Ebi, MFR3 Member 2 2
Meeting dates: 21 January, 19 April, 19 July, 18 October

1) Ms. Arunma Oteh, OON resigned from the Board and Committee effective 31 December 2022.
2) Prof. Fabian Ajogwu, SAN resigned from the Committee upon appointment as Chairman of Energy Transition Committee on 18
May 2022.
3) Mr. Kazeem Raimi and Mr. Ernest Ebi, MFR were appointed to the Board on 18 May 2022 and joined the Committee in the same
month.
Energy Transition Committee1

No. of meetings in the No. of times in
S/N Name year attendance
1. Basil Omiyi, CON1 Chairman 3 3
2. Fabian Ajogwu, SAN, OFR 2 Chairman 2 2
3. Arunma Oteh, OON 3 Member 5 5
4. Charles Okeahalam Member 5 5
5. Bello Rabiu Member 5 5
6. Emma FitzGerald Member 5 5
Meeting dates: 18 January, 25 February (combined meeting), 13 April, 14 July, 12 October

1) Mr. Basil Omiyi, CON, was the former Senior Independent Non-Executive Director on the Board; he resigned from the Committee
upon his appointment as the Chairman of the Board in May 2022.
2) Prof. Ajogwu, SAN, OFR, was appointed as the Chairman of the Committee in May 2022.
3) Ms. Arunma Oteh, OON, resigned from the Board effective 31st December 2022.
4) Mr. Kazeem Raimi joined the Board as a Non-Executive Director and a member of the Committee in May 2022
Statutory Audit Committee

No. of meetings in the No. of times in
S/N Name year attendance
1. Chief Anthony Idigbe, SAN Chairman/Shareholder 4 4

Ph.D. (Osgoode) Member
2. Sir Sunday Nnamdi Nwosu Shareholder Member 4 4
3. Mrs. Hauwa Umar Shareholder Member 4 4
4. Mr. Olivier De Langavant Director Member 4 4
5. Ms. Arunma Oteh, OON1 Director Member 2 2
6. Mrs Bashirat Odunewu1 Director Member 2 2
Meeting dates: 23 February, 20 April, 19 July, 20 October

1) Mrs. Bashirat Odunewu was appointed to the Board as an Independent Non-Executive Director on 18 May 2022. Mrs. Odunewu joined
the Statutory Audit Committee on May 18, 2022, and replaced Ms. Arunma Oteh on the Committee. Two of the Statutory Audit Committee
meetings took place before this change.

Directors’ Interest in Shares
In accordance with Section 301 of the Companies and Allied Matters Act, 2020, the interests of the Directors (and of
persons connected with them) in the share capital of the Company (all of which are beneficial unless otherwise stated) are
as follows:
31-Dec-21 31-Dec-22 28-Feb-23
No. of No. of As a No. of As a

Ordinary Ordinary percentage Ordinary percentage
Shares Shares of Ordinary Shares of Ordinary
Shares in Shares in
issue issue
Roger Brown 3,224,702 4,296,463 0.73% 4,379,645 0.74%
Samson Ezugworie n/a n/a 0.00% 0 0.00%
Bello Rabiu n/a 20,000 0.00% 20,000 0.00%
Emeka Onwuka 0 0 0.00% 26,864 0.00%
Oliver De Langavant 0 0 0.00% 0 0.00%
Charles Okeahalam 495,238 699,990 0.12% 699,990 0.12%
Basil Omiyi 495,238 495,238 0.08% 495,238 0.08%
Nathalie Delapalme 0 0 0.00% 0 0.00%
Arunma Oteh, OON 0 0 0.00% 0 0.00%
Emma Fitzgerald 0 0 0.00% 0 0.00%
Kazeem Raimi n/a n/a n/a 0 0.00%
Bashirat Odunewu n/a n/a n/a 0 0.00%
Ernest Ebi n/a n/a n/a 0 0.00%
Fabian Ajogwu 0 0 0.00% 0 0.00%
Total 4,215,178 5,511,691 0.93% 5,621,737 0.94%
Directors’ Interest in Contracts

The former Chairman and a Non-Executive Director have disclosable indirect interest in contracts with which the Company
was involved at 31 December 2022 for the purpose of section 303 of the Companies and Allied Matters Act, 2020. These
have been disclosed in Note 38.
Substantial Interest in Shares

At 31 December 2022, the following shareholders held more than 5.0% of the issued share capital of the Company:
Shareholder Number of holdings %
M&P Group 120,400,000 20.46
Petrolin Group 81,015,319 13.77
Sustainable Capital 52,628,483 8.94

Professional support 47,929,438 8.15
Allan Gray Investment Management 33,822,817 7.51
Free Float
With a free float of 29.5% as at 31 December 2022, Seplat Energy PLC is compliant with the Nigerian Exchange’s free
float requirements for companies listed on the Premium Board.
Share Dealing Policy

We confirm that to the best of our knowledge that there has been compliance with the Company’s Share Dealing Policy
during the period.
Shareholding Analysis
The distribution of shareholders at 31 December 2022 is as stated below:
Number of % of Number of % of
Share range shareholders shareholders shares held shareholding
1-10,000 3,365 91.69 1,613,647 0.27
10,001-50,000 166 4.52 4,174,019 0.71
50,001-100,000 45 1.23 3,439,663 0.58
100,001-500,000 60 1.63 13,034,927 2.22
500,001-1,000,000 9 0.25 6,067,583 1.03
1,000,001-5,000,000 19 0.52 44,379,459 7.54
5,000,001-10,000,000 5 0.14 36,295,426 6.17
100,000,001-500,000,0001* 1 0.03 479,439,837 81.48
Total 3,670 100.00 588,444,561 100.00
*Includes shares held by Computer Share on the London Stock Exchange
Share Capital History

Authorised Issued
Year increase Cumulative increase/cancelled Cumulative Consideration
Jun-09 – 100,000,000 100,000,000 100,000,000 cash
Mar-13 100,000,000 200,000,000 100,000,000 200,000,000 stock split from N1.00 to 50k
Jul-13 200,000,000 400,000,000 200,000,000 400,000,000 bonus (1 for 2)
Aug-13 600,000,000 1,000,000,000 153,310,313 553,310,313 cash
Dec-14 – 1,000,000,000 – 553,310,313 No change
Dec-15 – 1,000,000,000 10,134,248 563,444,561 staff share scheme
Dec-16 – 1,000,000,000 – 563,444,561 No change
Dec-17 – 1,000,000,000 – 563,444,561 No change
Feb-18 – 1,000,000,000 25,000,000 588,444,561 staff share scheme
Dec-19 - 1,000,000,000 - 588,444,561 No change

Dec-20 - 1,000,000,000 - 588,444,561 No change
Dec-21 - 1,000,000,000 - 588,444,561 No change
Dec-22 - (411,555,439) 588,444,561 Cancellation*

* By virtue of s.124, CAMA 2020 and Regulation 13, Companies Regulations 2021, CAC mandated companies with unissued shares to
issue all unissued/unallotted shares not later than 31 December 2022. The consequence of non-compliance is that any unissued share
capital at the relevant date will not be recognised as forming part of the share capital of the company until it is issued or reduced through
the share capital reduction process. In compliance with the above directive and having obtained Shareholders’ approval at the AGM
held on 18th May 2022, the Company cancelled 411,555,439 unissued shares.
Social impact programmes

Seplat Energy aspires to be a good corporate citizen, committed to driving positive socio-economic benefits for our country
and other stakeholders, and recognising that we must continuously earn our social licence to operate.
C4C Global Entrepreneurship Fellowship Programme
Seplat Energy, in partnership with C4C (Conversations for Change), granted 22 Fellows ₦16.5 million in seed money
following their graduation from the entrepreneurship programme. The C4C Global Entrepreneurship Fellowship
Programme is a 12-month programme that trains and supports batches of young entrepreneurs and helps them significantly
increase their chances of starting and maintaining profitable businesses. Investing in the next generation of leaders is a
long-term effort to create a dynamic platform for continuing information provision, dialogue, and discussions.
Seplat Teachers Empowerment Programme (STEP)
To promote creative thinking and higher student engagement, Seplat has introduced the STEAM learning model to
secondary schools in Delta and Edo States, where Science, Technology, Engineering, Arts, and Mathematics (STEAM)
are equal contributors to the process of learning. The programme is three months online that provides leadership and self-
improvement training, training on STEAM modules and their application to teaching. In 2022, Seplat trained over 271
teachers following an initial testing phase to qualify for the activity.
NEPL/Seplat JV Undergraduate Scholarship Programme
The NEPL/Seplat joint venture recognises the importance of education as the backbone of Nigeria’s future. Therefore, it
aims to promote educational development by providing annual grants to undergraduate students. The programme is aimed
at students from disadvantaged backgrounds who are enrolled in any federal or state university. Prospects must maintain
a steady record of good performance and can qualify for our examination round. This year the JV provided 120 such grants
to help students realise their educational aspirations.
PEARL Quiz (Promoting Exceptional and Respectable Leaders)
The Seplat PEARL Quiz was created to buoy the spirit of academic competition in pursuit of excellence. The programme
provides tangible benefits to every participating candidate. This year’s winners, Green Park Academy from Edo, collected
a cash prize of ₦10Million, while the second and third-place teams took home ₦5Million and ₦3Million, respectively. In
addition, each student from the top 3 teams also received ₦100,000, ₦75,000, and ₦50,000 in descending order of
achievement. The impact of this programme has been exceptional, with 781 schools and 3,905 students participating this
year alone.
Eye Can See
Eye Can See is one of our flagship CSR initiatives where community members can receive free eye surgery, treatment,
and even reading glasses funded by Seplat. The programme has gone from strength to strength, and this year, we provided
eye consultation services to 10,185 individuals, funded 461 surgeries and 6,519 reading glasses.
Donations
The following donations were made by the Group during the year (2021: N167,269,305.33, $432,861.12)
Beneficiary NG₦ $
Africa Oil Week 10,480,738.03 24,697.17
Centre for Black African Arts and Civiliazation 1,721,350.81 4,056.25
Conversations for Change 16,711,735.80 39,380.11
Energy Institute 1,909,665.00 4,500.00

Falcon Golf Development Company 4,080,340.25 9,615.05
Lawyers in Oil and Gas 1,708,768.24 4,026.60
Nigeria Annual International Conference and Exhibition 12,751,130.69 30,047.20
Nigerian Association of Petroleum Explorationists 11,494,125.11 27,085.15
Nigerian Gas Association 11,457,990.00 27,000.00
Offshore Technology Conference 11,192,279.21 26,373.87
Others 12,797,677.08 30,156.88
Oxford Institute for Energy Studies 27,847,371.59 65,620.50
Pillar Oil 448,329.93 1,056.46
Scholarship Recipients 14,441,656.11 34,030.81
The Energy 2050 Summit 3,242,611.17 7,641.00
Wharton School of the University of Pennsylvania 4,243,700.00 10,000.00
World Energy Capital Assembly 2,594,088.94 6,112.80
Total 149,123,557.95 351,399.86
Employment and Employees

Employee involvement and training: The Company continues to observe industrial relations practices such as the Joint
Consultative Committee and briefing employees on the developments in the Company during the year under review.
Various incentive schemes for staff were maintained during the year while regular training courses were carried out for the
employees. Educational assistance is provided to members of staff. Different cadres of staff were also assisted with
payment of subscriptions to various professional bodies during the year. The Company provides appropriate HSE training
to all staff, and Personal Protective Equipment (‘PPE’) to the appropriate staff.
Health, safety and welfare of employees: The Company continues to enforce strict health and safety rules and practices
at the work environment which are reviewed and tested regularly. The Company provides free medical care for its
employees and their families through designated hospitals and clinics. Fire prevention and fire-fighting equipment is
installed in strategic locations within the Company’s premises. The Company operates Group life insurance cover for the
benefit of its employees. It also complies with the requirements of the Pension Reform Act, 2004 regarding its employees.
Employment of disabled or physically challenged persons: The Company has a policy of fair consideration of job
applications by disabled persons having regard to their abilities and aptitude. The Company’s policy prohibits discrimination
of disabled persons in the recruitment, training and career development of its employees. As at the end of the reporting
period, the Group has no disabled persons in employment.
Auditor
The auditor, PricewaterhouseCoopers (“PwC”), has indicated its willingness to continue in office in accordance with Section
401(2) of the Companies and Allied Matters Act, 2020. A resolution will be proposed at the AGM for the re-appointment of
PwC as the Company’s auditor and for authorisation to the Board of Directors to fix the auditors’ remuneration.
By Order of the Board
Edith Onwuchekwa
FRC/2013/NBA/00000003660
Company Secretary
Seplat Energy Plc
16A Temple Road, Ikoyi, Lagos, Nigeria
28 February 2023

Statement of Director’s Responsibilities
For the year ended 31 December 2022
The Companies and Allied Matters Act, 2020, requires the Directors to prepare financial statements for each financial year
that gives a true and fair view of the state of financial affairs of the Group at the end of the year and of its profit or loss. The
responsibilities include ensuring that the Group:
1) keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Group
and comply with the requirements of the Companies and Allied Matters Act, 2020;
2) establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other
irregularities; and
3) prepares its financial statements using suitable accounting policies supported by reasonable and prudent
judgments and estimates and are consistently applied.
The Directors accept responsibility for the annual financial statements, which have been prepared using appropriate
accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International
Financial Reporting Standards (IFRS), the requirements of the Companies and Allied Matters Act, 2020 and Financial
Reporting Council of Nigeria Act, No. 6, 2011.
The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of
the Group and of its financial performance and cashflows for the year. The Directors further accept responsibility for the
maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as adequate
systems of internal financial control.
Nothing has come to the attention of the Directors to indicate that the Group will not remain a going concern for at least
twelve months from the date of this statement.
Signed on behalf of the Directors by:
B. Omiyi R.T. Brown

Chairman Chief Executive Officer
FRC/2016/IODN/00000014093 FRC/2014/PRO/DIR/003/00000017939
28 February 2023 28 February 2023

Statutory Audit Committee report
To the members of Seplat Energy Plc:
In accordance with the provisions of Section 404 (7) of the Companies and Allied Matters Act, 2020, members of the Audit
Committee of Seplat Energy Plc hereby report on the financial statements of the Group for the year ended 31 December
2022 as follows:
▪ The scope and plan of the audit for the year ended 31 December 2022 were adequate;
▪ We have reviewed the financial statements and are satisfied with the explanations and comments obtained;
▪ We have reviewed the external auditors’ management letter for the year and are satisfied with the management’s
responses and that management has taken appropriate steps to address the issues raised by the Auditors;
▪ We are of the opinion that the accounting and reporting policies of the Company are in accordance with legal
requirements and ethical practices.
The external Auditors confirmed having received full co-operation from the Company’s management in the course of the
statutory audit and that the scope of their work was not restricted in any way.
Chief Anthony Idigbe, SAN Ph.D (Osgoode)

Chairman, Statutory Audit Committee
FRC/2015/NBA/00000010414
28 February 2023
Statutory Audit Committee Members

Chief Anthony Idigbe SAN Ph.D. (Osgoode) Shareholder Member
Sir Sunday N. Nwosu, KSS Shareholder Member
Mrs. Hauwa Umar Shareholder Member
Mr. Olivier De Langavant Non-Executive Director
Mrs. Bashirat Odunewu Independent Non-Executive Director

Statement of Corporate Responsibility
for financial reports
In line with the provision of S.405 of CAMA 2020, we have reviewed the audited financial statements of the Group for the
year ended 31 December 2022 and based on our knowledge confirm as follows:
• The audited financial statements do not contain any untrue statement of material fact
or omit to state a material fact, which would make the statements misleading
• The audited financial statements and all other financial information included in the
statements fairly present, in all material respects, the financial condition and results
of operation of the Company as of and for, the period ended 31 December 2022
• The Company’s internal controls has been designed to ensure that all material information included relating to
the Company and its subsidiaries is received and provided to the Auditors in the course of the Audit
• The Company’s internal controls were evaluated within ninety days of the financial reporting date and are
effective as of 31 December 2022
• That we have disclosed to the Company’s Auditor’s and the Audit Committee the following information:
o There are no significant deficiencies in the design or operation of the Company’s internal control which
could adversely affect the Company’s ability to record, process, summarise and report financial data,
and have discussed with the auditors any weaknesses in internal controls observed in the cause of the
Audit
o There is no fraud involving management or other employ needs which could have any significant role
in the Company’s internal control
• There are no significant changes in internal controls or in other factors that could significantly affect internal
controls subsequent to the date of this audit, including any corrective actions with regard to any observed
deficiencies and material weaknesses
R.T. Brown E. Onwuka

FRC/2014/PRO/DIR/003/00000017939 FRC/2020/003/00000020861
Chief Executive Officer Chief Financial Officer
28 February 2023 28 February 2023

Group Accounts
For the year ended
31 December 2022
28 February 2023
(Expressed in Nigerian Naira
and US Dollars)
Reliable energy,
limitless potential

Consolidated statement of profit or loss and other
comprehensive income
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021
Notes ₦ million ₦ million $’000 $’000
Revenue from contracts with customers 7 403,913 293,631 951,795 733,188
Cost of sales 8 (206,696) (179,414) (487,059) (447,999)

Gross profit 197,217 114,217 464,736 285,189
Other (loss)/income 9 (15,302) 8,056 (36,054) 20,118
General and administrative expenses 10 (58,299) (32,074) (137,385) (80,090)
Impairment loss on financial assets 11.1 (2,730) (9,035) (6,432) (22,561)
Impairment loss on non-financial assets 11.2 - (6,216) - (15,521)
Impairment reversal on non-financial

11.2 - 29,900 - 74,659
assets
Fair value loss 12 (4,297) (4,447) (10,125) (11,106)
Operating profit 116,589 100,401 274,740 250,688
Finance income 13 491 126 1,157 314
Finance cost 13 (28,916) (30,516) (68,141) (76,197)
Finance cost-net (28,425) (30,390) (66,984) (75,883)
Share of (loss)/profit from joint venture
(1,434) 1,017 (3,380) 2,540
accounted for using the equity method 21
Profit before taxation 86,730 71,028 204,376 177,345
Income tax expense 14 (42,297) (24,097) (99,670) (60,169)
Profit for the year 44,433 46,931 104,706 117,176
Attributable to:
Equity holders of the parent 26,483 56,786 62,407 141,784
Non-controlling interests 17,950 (9,855) 42,299 (24,608)
44,433 46,931 104,706 117,176
Earnings per share for the year
Basic earnings per share ₦/$ 36 45.00 97.63 0.11 0.24
Diluted earnings per share ₦/$ 36 45.00 97.16 0.11 0.24
Notes 1 to 41 on pages 44 to 136 are an integral part of these financial statements.

Consolidated statement of profit or loss and other
comprehensive income
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021

Other comprehensive income:
Items that may be reclassified to profit or
loss:
Foreign currency translation difference 61,666 54,059 689 941
Items that will not be reclassified to profit or loss:

Re-measurement gain on
825 157 1,944 391
defined benefit obligations
Deferred tax expensed on remeasurement
(379) (133) (892) (333)
gain
Other comprehensive income for the year 62,112 54,083 1,741 999
Total comprehensive income for the
106,545 101,014 106,447 118,175
year
Attributable to:
Equity holders of the parent 88,595 110,869 64,148 142,783
Non-controlling interests 17,950 (9,855) 42,299 (24,608)
106,545 101,014 106,447 118,175
The above year end consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.

Consolidated Statement of financial position
As at 31 December 2022
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021

Assets
Non-current assets
Oil & gas properties 16 741,339 660,745 1,657,993 1,604,025
Other property, plant and equipment 16 12,419 11,228 27,775 27,255
Right-of-use assets 18 1,974 3,050 4,415 7,404
Intangible assets 19 55,630 54,045 124,415 131,200
Other asset 17 45,478 46,363 101,711 112,551
Investment accounted for using equity accounting 21 99,219 92,795 221,902 225,270
Prepayments 20 25,703 27,512 57,486 66,788
Deferred tax asset 14 205,107 128,539 458,718 312,041
Total non-current assets 1,186,869 1,024,277 2,654,415 2,486,534
Current assets
Inventories 22 24,774 30,878 55,406 74,957
Trade and other receivables 23 174,127 105,274 389,431 255,557
Prepayments 20 556 711 1,242 1,726
Derivative financial instruments 25 481 - 1,075 -
Contract assets 24 3,313 1,679 7,408 4,076
Restricted cash 26.2 10,706 6,603 23,944 16,029
Cash and cash equivalents 26 180,786 133,667 404,336 324,490
Total current assets 394,743 278,812 882,842 676,835
Total assets 1,581,612 1,303,089 3,537,257 3,163,369
Equity and Liabilities
Equity
Issued share capital 27 297 296 1,864 1,862
Share premium 27 91,317 90,383 522,227 520,138
Share based payment reserve 27 5,936 4,914 24,893 22,190
Treasury shares 27 (2,025) (2,025) (4,915) (4,915)
Capital contribution 28 5,932 5,932 40,000 40,000
Retained earnings 241,386 239,429 1,189,697 1,185,082
Foreign currency translation reserve 29 447,014 385,348 2,622 1,933
Non-controlling interest 21 (2,963) (20,913) (16,505) (58,804)
Total shareholders’ equity 786,894 703,364 1,759,883 1,707,486
Non-current liabilities
Interest bearing loans and borrowings 30 311,149 290,803 695,881 705,953
Lease Liabilities 31 - 198 - 481
Provision for decommissioning obligation 32 86,670 63,709 193,836 154,659
Deferred tax liabilities 14 126,664 42,732 283,282 103,736
Defined benefit plan 33 2,878 4,181 6,437 10,149
Total non-current liabilities 527,361 401,623 1,179,436 974,978
Current liabilities
Interest bearing loans and borrowings 30 33,232 24,988 74,322 60,661
Lease Liabilities 31 1,800 1,273 4,025 3,090
Derivative financial instruments 25 1,435 1,543 3,210 3,745
Trade and other payables 34 205,622 151,204 459,869 367,058
Current tax liabilities 14 25,268 19,094 56,512 46,351
Total current liabilities 267,357 198,102 597,938 480,905
Total liabilities 794,718 599,725 1,777,374 1,455,883
Total shareholders’ equity and liabilities 1,581,612 1,303,089 3,537,257 3,163,369

The financial statements of Seplat Energy Plc and its subsidiaries (The Group) for the year ended 31 December 2022 were
authorised for issue in accordance with a resolution of the Directors on 28 February 2023 and were signed on its behalf
by:
B. Omiyi R.T. Brown E. Onwuka
FRC/2016/IODN/00000014093 FRC/2014/PRO/DIR/003/00000017939 FRC/2020/PRO/ICAN/006/00000020861
Chairman Chief Executive Officer Chief Financial Officer
28 February 2023 28 February 2023 28 February 2023

Consolidated statement of changes in equity
Share Foreign
Issued based currency Non-
share Share payment Treasury Capital Retained translation controlling Total
capital premium reserve shares contribution Earnings reserve interest Equity
₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million
At 1 January 2021 293 86,917 7,174 - 5,932 211,790 331,289 (11,058) 632,337
Profit/(loss) for the year - - - - - 56,786 - (9,855) 46,931
Other comprehensive
income - - - - - 24 54,059 - 54,083
Total comprehensive
income/(loss) for the
year - - - - - 56,810 54,059 (9,855) 101,014
Transactions with owners in their capacity as owners:

Unclaimed dividend
forfeited - - - - - 206 - - 206
Dividends paid - - - - (29,377) - - (29,377)
Share based payments
(Note 27) - - 1,209 - - - - - 1,209
Vested shares (Note -
27) 3 3,466 (3,469) - - - - -
Shares re-purchased - - - (2,025) (2,025)
Total 3 3,466 (2,260) (2,025) - (29,171) - - (29,987)
At 31 December 2021 296 90,383 4,914 (2,025) 5,932 239,429 385,348 (20,913) 703,364
At 1 January 2022 296 90,383 4,914 (2,025) 5,932 239,429 385,348 (20,913) 703,364
Profit for the year - - - - - 26,483 - 17,950 44,433
Other comprehensive
income - - - - - 446 61,666 - 62,112
Total comprehensive
income for the year - - - - - 26,929 61,666 17,950 106,545

Unclaimed dividend
forfeited - - - - - - - - -
Dividend paid - - - - - (24,972) - - (24,972)
(Note 27) - - 3,474 - - - - - 3,474
Vested shares (Note
27) 1 934 (2,452) - - - - - (1,517)
Shares re-purchased
(Note 27) - - - - - - - - -
Total 1 934 1,022 - - (24,972) - - (23,015)
At 31 December 2022 297 91,317 5,936 (2,025) 5,932 241,386 447,014 (2,963) 786,894

Share Foreign
Issued based Currency Non-
share Share payment Treasury Capital Retained Translation controlling Total
capital premium reserve shares contribution Earnings Reserve interest Equity
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2021 1,855 511,723 27,592 - 40,000 1,116,079 992 (34,196) 1,664,045
Profit/(loss) for the year - - - - - 141,784 - (24,608) 117,176
Other comprehensive
- - - - - 58 941 - 999
income
Total comprehensive
income/(loss) for the - - - - - 141,842 941 (24,608) 118,175
year
Unclaimed dividend
- - - - - 515 - - 515
forfeited
Dividend paid - - - - - (73,354) - - (73,354)
- - 3,020 - - - - - 3,020
(Note 27)
Vested shares (Note
7 8,415 (8,422) - - - - - -
27)
Shares re-purchased
- - - (4,915) - - - - (4,915)
(Note 27)
Total 7 8,415 (5,402) (4,915) - (72,839) - - (74,734)
At 31 December 2021 1,862 520,138 22,190 (4,915) 40,000 1,185,082 1,933 (58,804) 1,707,486
At 1 January 2022 1,862 520,138 22,190 (4,915) 40,000 1,185,082 1,933 (58,804) 1,707,486
Profit for the year - - - - - 62,407 - 42,299 104,706
Other comprehensive
- - - - - 1,052 689 - 1,741
income
Total comprehensive
- - - - - 63,459 689 42,299 106,447
income for the year
Unclaimed dividend
- - - - - - - - -
forfeited
Dividend paid - - - - - (58,844) - - (58,844)
- - 8,188 - - - - - 8,188
(Note 27)
Vested shares (Note
2 2,089 (5,485) - - - - - (3,394)
27)
Shares re-purchased
- - - - - - - - -
(Note 27)
Total 2 2,089 2,703 - - (58,844) - - (54,050)
At 31 December 2022 1,864 522,227 24,893 (4,915) 40,000 1,189,697 2,622 (16,505) 1,759,883

Consolidated statement of cash flows
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021


Cash generated from operations 15 242,400 150,901 571,206 376,787
Tax paid 14 (24,415) (5,203) (57,532) (12,993)
Defined benefits paid 33 - - - -
Contribution to plan assets 33 (2,015) (1,000) (4,507) (2,497)
Hedge premium paid 12 (4,360) (3,608) (10,275) (9,010)
Net cash inflows from operating activities 211,610 141,090 498,892 352,287

Payment for acquisition of oil and gas properties 16 (67,338) (54,618) (158,678) (136,381)
Payment for acquisition of other property, plant and equipment 16 (1,973) (13,415) (4,649) (33,498)
Payment for Abiala investment 19 (5,092) - (12,000) -
Deposit for investment 23.6 (57,367) - (128,300) -
Proceeds from the disposal of oil and gas properties 16.3.2 7,884 - 18,578 -
Proceeds from disposal of other property plant and equipment 16.3.1 8 - 19 -
Rent prepaid - (272) - (679)
Receipts from other asset 17 4,600 1,961 10,840 4,897
Interest received 13 491 126 1,157 314
Restricted cash 26.3 (3,359) 7,029 (7,915) 17,552
Net cash outflows from investing activities (122,146) (59,189) (280,948) (147,795)

Repayments of loans and borrowings 30 - (240,291) - (600,000)
Proceeds from loans and borrowings 30 - 268,725 - 671,000
Shares purchased for employees* 27 - (2,025) - (4,915)
Dividends paid 37 (24,972) (29,377) (58,844) (73,354)
Interest paid on lease liability 31 (161) (212) (380) (530)
lease payments- principal portion 31 (836) (1,135) (1,970) (3,363)
Payments for other financing charges** 30 (5,325) (8,154) (12,547) (20,360)
Interest paid on loans and borrowings 30 (26,857) (27,728) (63,287) (69,236)
Net cash outflows from financing activities (58,151) (40,197) (137,028) (100,758)
Net increase in cash and cash equivalents 31,313 41,704 80,914 103,734
Cash and cash equivalents at beginning of the year 133,667 85,554 324,490 225,137
Effects of exchange rate changes on cash and cash equivalents 15,806 6,409 (1,068) (4,381)
Cash and cash equivalents at end of the year 26 180,786 133,667 404,336 324,490
*Shares purchased for employees of $4.9 million, ₦2.03 billion represent shares purchased in the open market for employees of the
Group.
**Other financing charges of $12.5 million, ₦5.3 billion relate to commitment fees and other transaction costs incurred on interest bearing
loans and borrowings ($350 million Revolving Credit Facility, $110 million Reserved Based Lending Facility and $50 million Junior Facility).

Notes to the consolidated financial statements
1. Corporate Structure and business

Seplat Energy Plc (formerly called Seplat Petroleum Development Company Plc, hereinafter referred to as ‘Seplat’ or the
‘Company’), the parent of the Group, was incorporated on 17 June 2009 as a private limited liability company and re-
registered as a public company on 3 October 2014, under the Companies and Allied Matters Act, CAP C20, Laws of the
Federation of Nigeria 2004. The Company commenced operations on 1 August 2010. The Company is principally engaged
in oil and gas exploration and production and gas processing activities. The Company’s registered address is: 16a Temple
Road (Olu Holloway), Ikoyi, Lagos, Nigeria.
The Company acquired, pursuant to an agreement for assignment dated 31 January 2010 between the Company, SPDC,
TOTAL and AGIP, a 45% participating interest in OML 4, OML 38 and OML 41 located in Nigeria.
In 2013, Newton Energy Limited (‘Newton Energy’), an entity previously beneficially owned by the same shareholders as
Seplat, became a subsidiary of the Company. On 1 June 2013, Newton Energy acquired from Pillar Oil Limited (‘Pillar Oil’)
a 40% Participant interest in producing assets: the Umuseti/Igbuku marginal field area located within OPL 283 (the
‘Umuseti/Igbuku Fields’).
On 27 March 2013, the Group incorporated a subsidiary, MSP Energy Limited. The Company was incorporated for oil and
gas exploration and production.
On 21 August 2014, the Group incorporated a new subsidiary, Seplat Energy UK Limited (formerly called Seplat Petroleum
Development UK Limited). The subsidiary provides technical, liaison and administrative support services relating to oil and
gas exploration activities.
On 12 December 2014, Seplat Gas Company Limited (‘Seplat Gas’) was incorporated as a private limited liability company
to engage in oil and gas exploration and production and gas processing. On 12 December 2014, the Group also
incorporated a new subsidiary, Seplat East Swamp Company Limited with the principal activity of oil and gas exploration
and production.
In 2015, the Group purchased a 40% participating interest in OML 53, onshore northeastern Niger Delta (Seplat East
Onshore Limited), from Chevron Nigeria Ltd for $259.4 million.
On 16 January 2018, the Group incorporated a subsidiary, Seplat West Limited (‘Seplat West’). Seplat West was
incorporated to manage the producing assets of Seplat Plc.
In 2017, the Group incorporated a new subsidiary, ANOH Gas Processing Company Limited. The principal activity of the
Company is the processing of gas from OML 53 using the ANOH gas processing plant.
In order to fund the development of the ANOH gas processing plant, on 13 August 2018, the Group entered into a
shareholder's agreement with Nigerian Gas Processing and Transportation Company (NGPTC). Funding is to be provided
by both parties in equal proportion representing their ownership share and will be used to subscribe for the ordinary shares
in ANOH. The agreement was effective on 18 April 2019, which was the date the Corporate Affairs Commission (CAC)
approval was received. Given the change in ownership structure as at 31 December 2019, the Group no longer exercises
control and has deconsolidated ANOH in the consolidated financial statements. However, its retained interest qualifies as
a joint arrangement and has been recognised accordingly as investment in joint venture.
On 31 December 2019, Seplat Energy Plc, acquired 100% of Eland Oil and Gas Plc’s issued and yet to be issued ordinary
shares. Eland is an independent oil and gas company that holds interest in subsidiaries and joint ventures that are into
production, development and exploration in West Africa, particularly the Niger Delta region of Nigeria.
On acquisition of Eland Oil and Gas Plc (Eland), the Group acquired indirect interest in existing subsidiaries of Eland.
Eland Oil & Gas (Nigeria) Limited, is a subsidiary acquired through the purchase of Eland and is into exploration and
production of oil and gas.
Westport Oil Limited, which was also acquired through purchase of Eland is a financing company.
Elcrest Exploration and Production Company Limited (Elcrest) who became an indirect subsidiary of the Group purchased
a 45 percent interest in OML 40 in 2012. Elcrest is a Joint Venture between Eland Oil and Gas (Nigeria) Limited (45%) and
Starcrest Nigeria Energy Limited (55%). It has been consolidated because Eland is deemed to have power over the
relevant activities of Elcrest to affect variable returns from Elcrest at the date of acquisition by the Group. (See details in
Note 4.1.v) The principal activity of Elcrest is exploration and production of oil and gas.
Wester Ord Oil & Gas (Nigeria) Limited, who also became an indirect subsidiary of the Group acquired a 40% stake in a
licence, Ubima, in 2014 via a joint operations agreement. The principal activity of Wester Ord Oil & Gas (Nigeria) Limited
is exploration and production of oil and gas.
Other entities acquired through the purchase of Eland are Tarland Oil Holdings Limited (a holding company), Brineland
Petroleum Limited (dormant company) and Destination Natural Resources Limited (dormant company).

On 1 January 2020, Seplat Energy Plc transferred its 45% participating interest in OML 4, OML 38 and OML 41 (“transferred
assets”) to Seplat West Limited. As a result, Seplat ceased to be a party to the Joint Operating Agreement in respect of
the transferred assets and became a holding company. Seplat West Limited became a party to the Joint Operating
Agreement in respect of the transferred assets and assumed its rights and obligations.
On 20 May 2021, following a special resolution by the Board in view of the Company’s strategy of transitioning into an
energy Company promoting renewable energy, sustainability, and new energy, the name of the Company was changed
from Seplat Petroleum Development Company Plc to Seplat Energy Plc under the Companies and Allied Matters Act 2020.
On 7 February 2022, the Group incorporated a subsidiary, Seplat Energy Offshore Limited. The Company was incorporated
for oil and gas exploration and production.
On 5 July 2022, the Group incorporated a subsidiary, Turnkey Drilling Services Limited. The Company was incorporated
for the purpose of drilling chemicals, material supply, directional drilling, drilling support services and exploration services.
The Company together with its subsidiaries as shown below are collectively referred to as the Group.
Country of
Date of incorporation and Percentage Nature of
Subsidiary incorporation place of business holding Principal activities holding
Oil & gas exploration

Newton Energy Limited 1 June 2013 Nigeria 99.9% Direct
and production
Technical, liaison and administrative

Seplat Energy UK
21 August 2014 United Kingdom 100% support services relating to oil & gas Direct
Limited
exploration and production
Seplat Gas Company Oil & gas exploration and production

12 December 2014 Nigeria 99.9% Direct
Limited and gas processing
Seplat East Onshore

12 December 2014 Nigeria 99.9% Oil & gas exploration and production Direct
Limited
Seplat East Swamp

12 December 2014 Nigeria 99.9% Oil & gas exploration and production Direct
Company Limited
Seplat West Limited 16 January 2018 Nigeria 99.9% Oil & gas exploration and production Direct
Eland Oil & Gas Limited 28 August 2009 United Kingdom 100% Holding company Direct
Eland Oil & Gas (Nigeria) Oil and Gas Exploration and
11 August 2010 Nigeria 100% Indirect
Limited Production
Elcrest Exploration and

Oil and Gas Exploration and
Production Nigeria 6 January 2011 Nigeria 45% Indirect
Production
Limited
Westport Oil Limited 8 August 2011 Jersey 100% Financing Indirect
Tarland Oil Holdings

16 July 2014 Jersey 100% Holding Company Indirect
Limited
Brineland Petroleum
18 February 2013 Nigeria 49% Dormant Indirect
Limited
Wester Ord Oil & Gas Oil and Gas Exploration

18 July 2014 Nigeria 100% Indirect
(Nigeria) Limited and Production
Wester Ord Oil and Gas

16 July 2014 Jersey 100% Holding Company Indirect
Limited
Destination Natural
- Dubai 70% Dormant Indirect
Resources Limited
Seplat Energy Offshore Oil and Gas exploration and

7 February 2022 Nigeria 100% Direct
Limited production
Oil and Gas exploration and

MSP Energy Limited 27 March 2013 Nigeria 100% Direct
production
Turnkey Drilling Services

5 July 2022 Nigeria 100% Drilling services Direct
Limited

2. Significant changes in the current reporting period
The following significant changes occurred during the reporting period ended 31 December 2022:
▪ During the year, Seplat Energy Offshore Limited was incorporated on 7 February 2022. The percentage ownership of
the Company is 100%.
▪ The Group made a deposit of $128.3 million, ₦57.4 billion to Exxon Mobil Corporation, Delaware as part of the
consideration to acquire the entire share capital of Mobil Producing Nigeria Unlimited. The completion of the transaction
is subject to ministerial consent and other required regulatory approvals.
▪ On 22 April 2022, the Company announced the appointment of three new directors as Independent Non-Executive
Directors of Seplat Energy Plc, resumption took effect on 18 May 2022. The three new directors are Mrs. Bashirat
Odunewu, Mr. Kazeem Raimi and Mr. Ernest Ebi.
▪ The Group signed a contract with Solewant Nigeria Limited in 2013 for the provision of coating services on line pipes.
Solewant proceeded to subcontract the service to Adamac Pipes and Coating Services. Over the course of the contract
between Solewant and Adamac, financial discords arose. The line pipes are currently being held by Adamac pending
ongoing litigations. Due to these pending litigations and rising concerns over recoverability of the pipes, Seplat made a
$3.6 million, ₦1.5 billion (30%) impairment on the Line pipes in 2020 and have decided to impair the balance of $8.5
million, ₦3.6 billion in the current reporting period.
▪ On 5 July 2022, the Group incorporated a subsidiary, Turnkey Drilling Services Limited. The Company was incorporated
for the purpose of drilling chemicals, material supply, directional drilling, drilling support services and exploration
services. The percentage ownership of the Company is 100%.
▪ On 1 August 2022, the Group announced the commercial launch of Amukpe-Escravos pipeline. The pipeline will offer
a more secured and reliable export route for liquids from Seplat Energy’s major assets OML 4, 38 and 41.
▪ On 30 September 2022, the Group refinanced its existing $350 million revolving credit facility due in December 2023
with a new 3-year $350 million Revolving Credit Facility (RCF) due in June 2025. The RCF also includes an automatic
maturity extension until December 2026 once a refinancing of the existing US$650million bond due in April 2026 is
implemented.
3. Summary of significant accounting policies
3.1 Introduction to summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial
statements. These accounting policies have been applied to all the periods presented, unless otherwise stated. The
Consolidated financial statements are for the Group consisting of Seplat Energy Plc and its subsidiaries.
3.2 Basis of preparation

The consolidated financial statements of the Group for the year ended 31 December 2022 have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS
Interpretations Committee (IFRS IC). The financial statements comply with IFRS as issued by the International Accounting
Standards Board (IASB). Additional information required by National regulations is included where appropriate.
The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of
financial position, the statement of changes in equity, the statement of cash flows and the notes to the financial statements.
The financial statements have been prepared under the going concern and historical cost convention, except for financial
instruments measured at fair value on initial recognition, derivative financial instruments, and defined benefit plans – plan
assets measured at fair value. The financial statements are presented in Nigerian Naira and United States Dollars, and all
values are rounded to the nearest million (₦’million) and thousand ($’000) respectively, except when otherwise indicated.
Nothing has come to the attention of the directors to indicate that the Group will not remain a going concern for at least
twelve months from the date of these financial statements.
The accounting policies adopted are consistent with those of the previous financial year end, except for the adoption of
new and amended standard which are set out below.
3.3 New and amended standards adopted by the Group

The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning
on or after 1 January 2022. The Group has not early adopted any other standard, interpretation or amendment that has
been issued but is not yet effective.

a) Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Group cannot avoid because
it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received
under it.
The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include
costs that relate directly to a contract to provide goods or services include both incremental costs (e.g., the costs of direct
labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used
to fulfil the contract as well as costs of contract management and supervision). General and administrative costs do not
relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.
In accordance with the transitional provisions, the Group applies the amendments to contracts for which it has not yet
fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments (the date
of initial application) and has not restated its comparative information.
b) Reference to the Conceptual Framework – Amendments to IFRS 3

The amendments replace a reference to a previous version of the IASB’s Conceptual Framework with a reference to the
current version issued in March 2018 without significantly changing its requirements.
The amendments add an exception to the recognition principle of IFRS 3 Business Combinations to avoid the issue of
potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37
Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires
entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether
a present obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that
contingent assets do not qualify for recognition at the acquisition date.
These amendments had no impact on the consolidated financial statements of the Group as there were no contingent
assets, liabilities and contingent liabilities within the scope of these amendments arisen during the period.
c) Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds
of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and
the costs of producing those items, in profit or loss.
These amendments had no impact on the consolidated financial statements of the Group as there were no sales of such
items produced by property, plant and equipment made available for use on or after the beginning of the earliest period
presented.
d) IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time

adopter
The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative translation
differences using the amounts reported in the parent’s consolidated financial statements, based on the parent’s date of
transition to IFRS, if no adjustments were made for consolidation procedures and for the effects of the business
combination in which the parent acquired the subsidiary. This amendment is also applied to an associate or joint venture
that elects to apply paragraph D16(a) of IFRS 1.
These amendments had no impact on the consolidated financial statements of the Group as it is not a first-time adopter.
e) IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial
liability are substantially different from the terms of the original financial liability. These fees include only those paid or
received between the borrower and the lender, including fees paid or received by either the borrower or lender on the
other’s behalf. There is no similar amendment proposed for IAS 39 Financial Instruments: Recognition and Measurement.
These amendments had no impact on the consolidated financial statements of the Group.
3.4 Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
the Group’s financial statements are disclosed below. The Group intends to adopt these new and amended standards and
interpretations, if applicable, when they become effective. Details of these new standards and interpretations are set out
below:
▪ IFRS 17 Insurance Contracts - Effective for annual periods beginning on or after 1 January 2023
▪ Amendments to IAS 1: Classification of Liabilities as Current or Non-current - Effective for annual periods beginning on
or after 1 January 2024

▪ Amendments to IAS 8 Accounting Policies and Accounting Estimates: Definition of Accounting Estimates - Effective
date for annual periods beginning on or after 1 January 2023
▪ Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2- Effective date for annual
periods beginning on or after 1 January 2023
▪ Amendments regarding deferred tax on leases and decommissioning obligations - Effective date for annual periods
beginning on or after 1 January 2023
▪ IFRS 16 amended for lease liability measurement in sale and leaseback – Effective date for annual periods beginning
on or after January 2024.
3.5 Basis of consolidation
i. Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control.
The consolidated financial information comprises the financial statements of the Company and its subsidiaries as at 31
December 2022. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
controls an investee if and only if the Group has:
▪ Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);
▪ Exposure, or rights, to variable returns from its involvement with the investee; and
▪ The ability to use its power over the investee to affect its returns.
Subsidiaries are consolidated from the date on which control is obtained by the Group and are deconsolidated from the
date control ceases.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when
the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
▪ The contractual arrangement(s) with the other vote holders of the investee
▪ Rights arising from other contractual arrangements
▪ The Group’s voting rights and potential voting rights
ii. Change in the ownership interest of subsidiary

The acquisition method of accounting is used to account for business combinations by the Group.
Non- controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of
profit or loss and other comprehensive income, statement of changes in equity and statement of financial position
respectively.
Intercompany transaction balances and unrealized gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
iii. Disposal of subsidiary

Where the Group disposes a subsidiary, it:
▪ Derecognises the assets (including goodwill) and liabilities of the subsidiary;
▪ Derecognises the carrying amount of any non-controlling interests;
▪ Derecognises the cumulative translation differences recorded in equity;
▪ Recognises the fair value of the consideration received;
▪ Recognises the fair value of any investment retained;
▪ Recognises any surplus or deficit in profit or loss; and
▪ Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities.
iv. Joint arrangements

Under IFRS 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement.
Interest in the joint venture is accounted for using the equity method, after initially being recognised at cost in the
consolidated statement of financial position. All other joint arrangements of the Group are joint operations.
v. Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the group holds between 20% and 50% of the voting rights. Investment in associates is accounted for
using the equity method of accounting (see (vi) below) after initially being recognised at cost.
vi. Equity method

Under the equity method of accounting, the Group’s investments are initially recognised at cost and adjusted thereafter to
recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share
of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or
receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
Where the Group’s share of loss in an equity accounting investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations
or made payments on behalf of the other party.
Unrealised gains on transactions between the Group and its associate and joint venture are eliminated to the extent of the
Group’s interest in the entities. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity accounted investees are changed where necessary to
ensure consistency with the policies adopted by the Group.
The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described in
Note 3.14.
vii. Changes in ownership interest

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the
controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate
reserve within equity attributable to owners of the group.
When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or
significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount
recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting
for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in
other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related
assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to
profit or loss.
viii. Accounting for loss of control

When the Group ceases to consolidate a subsidiary because of a joint control, it does the following:
▪ deconsolidates the assets (including goodwill), liabilities and non-controlling interest (including attributable other
comprehensive income) of the former subsidiary from the consolidated financial position.
▪ any retained interest (including amounts owed by and to the former subsidiary) in the entity is remeasured to its fair
value, with the change in carrying amount recognised in profit or loss. This fair value becomes the
▪ initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate or a joint
venture.
▪ any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the
Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in
other comprehensive income are reclassified to profit or loss or transferred directly to retained earnings if required by
other IFRSs.
▪ the resulting gain or loss, on loss of control, is recognised together with the profit or loss from the discontinued operation
for the period before the loss of control.
▪ the gain or loss on disposal will comprise of the gain or loss attributable to the portion disposed of and the gain or loss
on remeasurement of the portion retained. The latter is disclosed separately in the notes to the financial statements.

If the ownership interest in a joint venture is reduced but joint control or significant influence is retained, only a proportionate
share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss where
appropriate.
ix. Non-controlling interests

The Group recognises non-controlling interests in an acquired entity either at fair value or at the noncontrolling interest’s
proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition-by-acquisition
basis.
x. Goodwill
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for
impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is
carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment
testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to
benefit from the business combination in which the goodwill arose.
3.6 Functional and presentation currency

Items included in the financial statements of each of the Group’s subsidiaries are measured using the currency of the
primary economic environment in which the subsidiaries operate (‘the functional currency’), which is the US dollar except
the UK subsidiary which is the Great Britain Pound. The consolidated financial statements are presented in Nigerian Naira
and the US Dollars.
The Group has chosen to show both presentation currencies and this is allowable by the regulator.
i. Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end are generally recognised in profit or loss.
They are deferred in equity if attributable to net investment in foreign operations.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance
costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within
other income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported
as part of the fair value gain or loss or other comprehensive income depending on where fair value gain or loss is reported.
ii. Group companies

The results and financial position of foreign operations that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
▪ assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of
the reporting date.
▪ income and expenses for statement of profit or loss and other comprehensive income are translated at average
exchange rates (unless this is not - a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the dates of the transactions), and all resulting
exchange differences are recognised in other comprehensive income.
On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign
operation is recognised in profit or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign operation
are treated as assets and liabilities of the foreign operation and translated at the closing rate.
3.7 Oil and gas accounting
i. Pre-licensing costs
Pre-license costs are expensed in the period in which they are incurred.
ii. Exploration license cost

Exploration license costs are capitalised within intangible assets. License costs paid in connection with a right to explore
in an existing exploration area are capitalised and amortised on a straight-line basis over the life.
License costs are reviewed at each reporting date to confirm that there is no indication that the carrying amount exceeds
the recoverable amount. This review includes confirming that exploration drilling is still under way or firmly planned, or that
it has been determined, or work is under way to determine that the discovery is economically viable based on a range of
technical and commercial considerations and sufficient progress is being made to establish development plans and timing.
If no future activity is planned or the license has been relinquished or has expired, the carrying value of the license is
written off through profit or loss. The exploration license costs are initially recognised at cost and subsequently amortised
on a straight line based on the economic life. They are subsequently carried at cost less accumulated amortisation and
impairment losses.
iii. Acquisition of producing assets

Upon acquisition of producing assets which do not constitute a business combination, the Group identifies and recognises
the individual identifiable assets acquired (including those assets that meet the definition of, and recognition criteria for,
intangible assets in IAS 38 Intangible Assets) and liabilities assumed. The purchase price paid for the group of assets is
allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase.
iv. Exploration and evaluation expenditures

Geological and geophysical exploration costs are charged to profit or loss as incurred.
Exploration and evaluation expenditures incurred by the entity are accumulated separately for each area of interest. Such
expenditures comprise net direct costs and an appropriate portion of related overhead expenditure, but do not include
general overheads or administrative expenditure that is not directly related to a particular area of interest. Each area of
interest is limited to a size related to a known or probable hydrocarbon resource capable of supporting an oil operation.
Costs directly associated with an exploration well, exploratory stratigraphic test well and delineation wells are temporarily
suspended (capitalised) until the drilling of the well is complete and the results have been evaluated. These costs include
employee remuneration, materials and fuel used, rig costs, delay rentals and payments made to contractors. If
hydrocarbons (‘proved reserves’) are not found, the exploration expenditure is written off as a dry hole and charged to
profit or loss. If hydrocarbons are found, the costs continue to be capitalised.
Suspended exploration and evaluation expenditure in relation to each area of interest is carried forward as an asset
provided that one of the following conditions is met:
▪ the costs are expected to be recouped through successful development and exploitation of the area of interest or
alternatively, by its sale;
▪ exploration and/or evaluation activities in the area of interest have not, at the reporting date, reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves; and
▪ active and significant operations in, or in relation to, the area of interest.
Exploration and/or evaluation expenditures which fail to meet at least one of the conditions outlined above are written off.
In the event that an area is subsequently abandoned or exploration activities do not lead to the discovery of proved or
probable reserves, or if the Directors consider the expenditure to be of no value, any accumulated costs carried forward
relating to the specified areas of interest are written off in the year in which the decision is made. While an area of interest
is in the development phase, amortisation of development costs is not charged pending the commencement of production.
Exploration and evaluation costs are transferred from the exploration and/or evaluation phase to the development phase
upon commitment to a commercial development.
v. Development expenditures
Development expenditure incurred by the Group is accumulated separately for each area of interest in which economically
recoverable reserves have been identified to the satisfaction of the Directors. Such expenditure comprises net direct costs
and, in the same manner as for exploration and evaluation expenditure, an appropriate portion of related overhead
expenditure directly related to the development property. All expenditure incurred prior to the commencement of
commercial levels of production from each development property is carried forward to the extent to which recoupment is
expected to be derived from the sale of production from the relevant development property.
3.8 Revenue recognition (IFRS 15)

IFRS 15 uses a five-step model for recognising revenue to depict transfer of goods or services. The model distinguishes
between promises to a customer that are satisfied at a point in time and those that are satisfied over time.
It is the Group’s policy to recognise revenue from a contract when it has been approved by both parties, rights have been
clearly identified, payment terms have been defined, the contract has commercial substance, and collectability has been

ascertained as probable. Collectability of customer’s payments is ascertained based on the customer’s historical records,
guarantees provided, the customer’s industry and advance payments made if any.
Revenue is recognised when control of goods sold has been transferred. Control of an asset refers to the ability to direct
the use of and obtain substantially all of the remaining benefits (potential cash inflows or savings in cash outflows)
associated with the asset. For crude oil, this occurs when the crude products are lifted by the customer (buyer) Free on
Board at the Group’s loading facility. Revenue from the sale of oil is recognised at a point in time when performance
obligation is satisfied. For gas sales, revenue is recognised when the product passes through the custody transfer point to
the customer. Revenue from the sale of gas is recognised over time using the practical expedient of the right to invoice.
The surplus or deficit of the product sold during the period over the Group’s share of production is termed as an overlift or
underlift. With regard to underlifts, if the over-lifter does not meet the definition of a customer or the settlement of the
transaction is non-monetary, a receivable and other income is recognised. Initially, when an overlift occurs, cost of sale is
debited, and a corresponding liability is accrued. Overlifts and underlifts are initially measured at the market price of oil at
the date of lifting, consistent with the measurement of the sale and purchase. Subsequently, they are remeasured at the
current market value. The change arising from this remeasurement is included in the profit or loss as other
income/expenses-net.
Definition of a customer
A customer is a party that has contracted with the Group to obtain crude oil or gas products in exchange for a consideration,
rather than to share in the risks and benefits that result from sale. The Group has entered into collaborative arrangements
with its Joint arrangement partners to share in the production of oil. Collaborative arrangements with its Joint arrangement
partners to share in the production of oil are accounted for differently from arrangements with customers as collaborators
share in the risks and benefits of the transaction, and therefore, do not meet the definition of customers. Revenue arising
from these arrangements are recognised separately in other income.
Contract enforceability and termination clauses

It is the Group’s policy to assess that the defined criteria for establishing contracts that entail enforceable rights and
obligations are met. The criteria provide that the contract has been approved by both parties, rights have been clearly
identified, payment terms have been defined, the contract has commercial substance, and collectability has been
ascertained as probable. Revenue is not recognised for contracts that do not create enforceable rights and obligations to
parties in a contract. The Group also does not recognise revenue for contracts that do not meet the revenue recognition
criteria. In such cases where consideration is received it recognises a contract liability and only recognises revenue when
the contract is terminated.
The Group may also have the unilateral rights to terminate an unperformed contract without compensating the other party.
This could occur where the Group has not yet transferred any promised goods or services to the customer and the Group
has not yet received, and is not yet entitled to receive, any consideration in exchange for promised goods or services.
Identification of performance obligation

At inception, the Group assesses the goods or services promised in the contract with a customer to identify as a
performance obligation, each promise to transfer to the customer either a distinct good or series of distinct goods. The
number of identified performance obligations in a contract will depend on the number of promises made to the customer.
The delivery of barrels of crude oil or units of gas are usually the only performance obligation included in oil and gas
contract with no additional contractual promises. Additional performance obligations may arise from future contracts with
the Group and its customers.
The identification of performance obligations is a crucial part in determining the amount of consideration recognised as
revenue. This is due to the fact that revenue is only recognised at the point where the performance obligation is fulfilled,
Management has therefore developed adequate measures to ensure that all contractual promises are appropriately
considered and accounted for accordingly.
Transaction price is the amount allocated to the performance obligations identified in the contract. It represents the amount
of revenue recognised as those performance obligations are satisfied. Complexities may arise where a contract includes
variable consideration, significant financing component or consideration payable to a customer.
Variable consideration not within the Group’s control is estimated at the point of revenue recognition and reassessed
periodically. The estimated amount is included in the transaction price to the extent that it is highly probable that a significant
reversal of the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. As a practical expedient, where the Group has a right to consideration from a
customer in an amount that corresponds directly with the value to the customer of the Group’s performance completed to
date, the Group may recognise revenue in the amount to which it has a right to invoice.

Significant financing component (SFC) assessment is carried out (using a discount rate that reflects the amount charged
in a separate financing transaction with the customer and also considering the Group’s incremental borrowing rate) on
contracts that have a repayment period of more than 12 months.
As a practical expedient, the Group does not adjust the promised amount of consideration for the effects of a significant
financing component if it expects, at contract inception, that the period between when it transfers a promised good or
service to a customer and when the customer pays for that good or service will be one year or less.
Instances when SFC assessment may be carried out include where the Group receives advance payment for agreed
volumes of crude oil or receives take or pay deficiency payment on gas sales. Take or pay gas sales contract ideally
provides that the customer must sometimes pay for gas even when not delivered to the customer. The customer, in future
contract years, takes delivery of the product without further payment. The portion of advance payments that represents
significant financing component will be recognised as interest expense.
Consideration payable to a customer is accounted for as a reduction of the transaction price unless the payment to the
customer is in exchange for a distinct goods or services that the customer transfers to the Group.
Breakage
The Group enters into take or pay contracts for sale of gas where the buyer may not ultimately exercise all of their rights
to the gas. The take or pay quantity not taken is paid for by buyer called take or pay deficiency payment. The Group
assesses if there is a reasonable assurance that it will be entitled to a breakage amount. Where it establishes that a
reasonable assurance exists, it recognises the expected breakage amount as revenue in proportion to the pattern of rights
exercised by the customer. However, where the Group is not reasonably assured of a breakage amount, it would only
recognise the expected breakage amount as revenue when the likelihood of the customer exercising its remaining rights
becomes remote.
Contract modification and contract combination

Contract modifications relate to a change in the price and/or scope of an approved contract. Where there is a contract
modification, the Group assesses if the modification will create a new contract or change the existing enforceable rights
and obligations of the parties to the original contract. Contract modifications are treated as new contracts when the
performance obligations are separately identifiable and transaction price reflects the standalone selling price of the crude
oil or the gas to be sold. Revenue is adjusted prospectively when the crude oil or gas transferred is separately identifiable
and the price does not reflect the standalone selling price. Conversely, if there are remaining performance obligations
which are not separately identifiable, revenue will be recognised on a cumulative catch-up basis when crude oil or gas is
transferred.
The Group combines contracts entered into at near the same time (less than 12 months) as one contract if they are entered
into with the same or related party customer, the performance obligations are the same for the contracts and the price of
one contract depends on the other contract.
Portfolio expedients
As a practical expedient, the Group may apply the requirements of IFRS 15 to a portfolio of contracts (or performance
obligations) with similar characteristics if it expects that the effect on the financial statements would not be materially
different from applying IFRS to individual contracts within that portfolio.
Contract assets and liabilities

The Group recognises contract assets for unbilled revenue from crude oil and gas sales. The Group recognises contract
liability for consideration received for which performance obligation has not been met.
Disaggregation of revenue from contract with customers

The Group derives revenue from two types of products, oil and gas. The Group has determined that the disaggregation of
revenue based on the criteria of type of products meets the disaggregation of revenue disclosure requirement of IFRS 15.
It depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See
further details in note 6.1.1.
3.9 Property, plant and equipment

Oil and gas properties and other plant and equipment are stated at cost, less accumulated depreciation, and accumulated
impairment losses.

The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the
asset into operation, the initial estimate of any decommissioning obligation and, for qualifying assets, borrowing costs. The
purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to
acquire the asset. Where parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection
costs and overhaul costs. Where an asset or part of an asset that was separately depreciated and is now written off is
replaced and it is probable that future economic benefits associated with the item will flow to the entity, the expenditure is
capitalised. Inspection costs associated with major maintenance programmes are capitalised and amortised over the
period to the next inspection. Overhaul costs for major maintenance programmes are capitalised as incurred as long as
these costs increase the efficiency of the unit or extend the useful life of the asset. All other maintenance costs are
expensed as incurred.
Depreciation
Production and field facilities are depreciated on a unit-of-production basis over the estimated proved developed reserves.
Gas plant is depreciated on a straight-line basis over its useful lives. Assets under construction are not depreciated. Other
property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Depreciation
commences when an asset is available for use. The depreciation rate for each class is as follows:
Plant and machinery 10% - 20%
Gas plant 4%
Motor vehicles 25%-30%
Office furniture and IT equipment 10%-33.33%
Buildings 4%
Land -
Leasehold improvements Over the unexpired portion of the lease
The expected useful lives and residual values of property, plant and equipment are reviewed on an annual basis and, if
necessary, changes in useful lives are accounted for prospectively.
Gains or losses on disposal of property, plant and equipment are determined as the difference between disposal proceeds
and carrying amount of the disposed assets. These gains or losses are included in the statement of profit or loss.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e.,
at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any
gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised.
3.10 Right-of-use assets

The Group recognises right-of-use assets at the commencement date of a lease (i.e. the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets include the amount of lease liabilities
recognised, initial direct costs incurred, decommissioning costs (if any), and lease payments made at or before the
commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of
the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis
over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.
Short-term leases and leases of low value

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease
term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease
of low-value assets recognition exemption to leases that are considered of low value (i.e. low value assets). Low-value
assets are assets with lease amount of less than $5,000 when new. Lease payments on short-term leases and leases of
low-value assets are recognised as an expense on a straight-line basis over the lease term.
3.11 Lease liabilities

At the commencement date of a lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include the exercise price of a purchase option reasonably

certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as an
expense in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. The weighted average incremental
borrowing rate for the Group is 7.56%. After the commencement date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a
change in the assessment to purchase the underlying asset. The lease term refers to the contractual period of a lease.
The Group has elected to exclude non-lease components in calculating lease liabilities and instead treat the related costs
as an expense in the statement of profit or loss.
3.12 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. These costs may
arise from; specific borrowings used for the purpose of financing the construction of a qualifying asset, and those that arise
from general borrowings that would have been avoided if the expenditure on the qualifying asset had not been made. The
general borrowing costs attributable to an asset’s construction is calculated by reference to the weighted average cost of
general borrowings that are outstanding during the period.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on the qualifying
assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in the
statement of profit or loss in the period in which they are incurred.
3.13 Finance income and costs
Finance income
Finance income is recognised in the statement of profit or loss as it accrues using the effective interest rate (EIR), which
is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the amortised cost of the financial instrument. The determination of
finance income takes into account all contractual terms of the financial instrument as well as any fees or incremental costs
that are directly attributable to the instrument and are an integral part of the effective interest rate (EIR), but not future
credit losses.
Finance cost
Finance costs includes borrowing costs, interest expense calculated using the effective interest rate method, finance
charges in respect of lease liabilities, the unwinding of the effect of discounting provisions, and the amortisation of discounts
and premiums on debt instruments that are liabilities.
The Group applies the IBOR reform Phase 2 amendments which allows as a practical expedient for changes to the basis
for determining contractual cash flows to be treated as changes to a floating rate of interest, provided certain conditions
are met. The conditions include that the change is necessary as a direct consequence of IBOR reform and that the transition
takes place on an economically equivalent basis.
3.14 Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently. Other non –financial assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. Individual assets are grouped for impairment
assessment purposes at the lowest level at which there are identifiable cash flows that are largely independent of the cash
flows of other groups of assets. This should be at a level not higher than an operating segment.
If any such indication of impairment exists or when annual impairment testing for an asset group is required, the entity
makes an estimate of its recoverable amount. Such indicators include changes in the Group’s business plans, changes in
commodity prices, evidence of physical damage and, for oil and gas properties, significant downward revisions of estimated
recoverable volumes or increases in estimated future development expenditure.

The recoverable amount is the higher of an asset’s fair value less costs of disposal (‘FVLCD’) and value in use (‘VIU’). The
recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or group of assets, in which case, the asset is tested as part of a larger cash
generating unit to which it belongs. Where the carrying amount of an asset group exceeds its recoverable amount, the
asset group is considered impaired and is written down to its recoverable amount.
Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment
at the end of each reporting period.
In calculating VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset/CGU. In determining
FVLCD, recent market transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.
Impairment – exploration and evaluation assets

Exploration and evaluation assets are tested for impairment once commercial reserves are found before they are
transferred to oil and gas assets, or whenever facts and circumstances indicate impairment. An impairment loss is
recognised for the amount by which the exploration and evaluation assets’ carrying amount exceeds their recoverable
amount. The recoverable amount is the higher of the exploration and evaluation assets’ fair value less costs to sell and
their value in use.
Impairment – proved oil and gas production properties

Proven oil and gas properties are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows.
3.15 Cash and cash equivalents

Cash and cash equivalents in the statement of cash flows comprise cash at banks and at hand and short-term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
3.16 Inventories
Inventories represent the value of tubulars, casings, spares and wellheads. These are stated at the lower of cost and net
realisable value. Cost is determined using the invoice value and all other directly attributable costs to bringing the inventory
to the point of use determined on a first in first out basis. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the estimated cost necessary to make the sale.
3.17 Other asset

The Group’s interest in the oil and gas reserves of OML 55 has been classified as other asset. On initial recognition, it is
measured at the fair value of future recoverable oil and gas reserves. Subsequently, the other asset is recognised at fair
value through profit or loss.
3.18 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker.
The Board of directors has appointed a steering committee which assesses the financial performance and position of the
Group and makes strategic decisions. The steering committee, which has been identified as the chief operating decision
maker, consists of the Chief Financial Officer, the Vice President (Finance), the Director (New Energy) and the Financial
Reporting Manager. See further details in Note 6.
3.19 Financial instruments

IFRS 9 provides guidance on the recognition, classification and measurement of financial assets and financial liabilities;
derecognition of financial instruments; impairment of financial assets and hedge accounting. IFRS 9 also significantly
amends other standards dealing with financial instruments such as IFRS 7 Financial Instruments: Disclosures.
a) Classification and measurement

Financial Assets

It is the Group’s policy to initially recognise financial asset at fair value plus transaction costs, except in the case of financial
assets recorded at fair value through profit or loss which are expensed in profit or loss.
Classification and subsequent measurement are dependent on the Group’s business model for managing the asset and
the cash flow characteristics of the asset. On this basis, the Group may classify its financial instruments at amortised cost,
fair value through profit or loss and at fair value through other comprehensive income.
All the Group’s financial assets as at 31 December 2022 satisfy the conditions for classification at amortised cost under
IFRS 9 except for derivatives which are classified at fair value through profit or loss.
The Group’s financial assets include trade receivables, NEPL receivables, NNPC receivables, other receivables, cash and
bank balances and derivatives. They are included in current assets, except for maturities greater than 12 months after the
reporting date. Interest income from these assets is included in finance income using the effective interest rate method.
Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in finance income/cost.
Financial liabilities
Financial liabilities of the Group are classified and measured at fair value on initial recognition and subsequently at
amortised cost net of directly attributable transaction costs, except for derivatives which are classified and subsequently
recognised at fair value through profit or loss.
Fair value gains or losses for financial liabilities designated at fair value through profit or loss are accounted for in profit or
loss except for the amount of change that is attributable to changes in the Group’s own credit risk which is presented in
other comprehensive income. The remaining amount of change in the fair value of the liability is presented in profit or loss.
The Group’s financial liabilities include trade and other payables and interest-bearing loans and borrowings.
b) Impairment of financial assets

Recognition of impairment provisions under IFRS 9 is based on the expected credit loss (ECL) model. The ECL model is
applicable to financial assets classified at amortised cost and contract assets under IFRS 15: Revenue from Contracts with
Customers. The measurement of ECL reflects an unbiased and probability-weighted amount that is determined by
evaluating a range of possible outcomes, time value of money and reasonable and supportable information that is available
without undue cost or effort at the reporting date, about past events, current conditions and forecasts of future economic
conditions.
The Group applies the simplified approach or the three-stage general approach to determine impairment of receivables
depending on their respective nature. The simplified approach is applied for trade receivables and contract assets while
the general approach is applied to NEPL receivables, NNPC receivables, other receivables and cash and bank balances.
The simplified approach requires expected lifetime losses to be recognised from initial recognition of the receivables. This
involves determining the expected loss rates using a provision matrix that is based on the Group’s historical default rates
observed over the expected life of the receivable and adjusted forward-looking estimates. This is then applied to the gross
carrying amount of the receivable to arrive at the loss allowance for the period.
The three-stage approach assesses impairment based on changes in credit risk since initial recognition using the past due
criterion and other qualitative indicators such as increase in political concerns or other macroeconomic factors and the risk
of legal action, sanction or other regulatory penalties that may impair future financial performance.
Financial assets classified as stage 1 have their ECL measured as a proportion of their lifetime ECL that results from
possible default events that can occur within one year, while assets in stage 2 or 3 have their ECL measured on a lifetime
basis.
Under the three-stage approach, the ECL is determined by projecting the probability of default (PD), loss given default
(LGD) and exposure at default (EAD) for each ageing bucket and for each individual exposure. The PD is based on default
rates determined by external rating agencies for the counterparties. The LGD is determined based on management’s
estimate of expected cash recoveries after considering the historical pattern of the receivable, and it assesses the portion
of the outstanding receivable that is deemed to be irrecoverable at the reporting period. The EAD is the total amount of
outstanding receivable at the reporting period. These three components are multiplied together and adjusted for forward
looking information, such as the gross domestic product (GDP) in Nigeria and crude oil prices, to arrive at an ECL which
is then discounted back to the reporting date and summed. The discount rate used in the ECL calculation is the original
effective interest rate or an approximation thereof.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
related financial assets and the amount of the loss is recognised in profit or loss.
c) Significant increase in credit risk and default definition

The Group assesses the credit risk of its financial assets based on the information obtained during periodic review of
publicly available information, industry trends and payment records. Based on the analysis of the information provided, the
Group identifies the assets that require close monitoring.

Furthermore, financial assets that have been identified to be more than 30 days past due on contractual payments are
assessed to have experienced significant increase in credit risk. These assets are grouped as part of Stage 2 financial
assets where the three-stage approach is applied.
In line with the Group’s credit risk management practices, a financial asset is defined to be in default when contractual
payments have not been received at least 90 days after the contractual payment period. Subsequent to default, the Group
carries out active recovery strategies to recover all outstanding payments due on receivables. Where the Group determines
that there are no realistic prospects of recovery, the financial asset and any related loss allowance is written off either
partially or in full.
d) Write off policy

The Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has
concluded that there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of
recovery include;
▪ ceasing enforcement activity and;
▪ where the Group's recovery method is foreclosing on collateral and the value of the collateral is such that there is no
reasonable expectation of recovering in full.
The Group may write - off financial assets that are still subject to enforcement activity. The outstanding contractual amounts
of such assets written off during the year ended 31 December 2022 was nil (2021: Nil).
The Group seeks to recover amounts it legally owed in full, but which have been partially written off due to no reasonable
expectation of full recovery.
e) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or
when it transfers the financial asset and the transfer qualifies for derecognition. Gains or losses on derecognition of financial
assets are recognised as finance income/cost.
The Group derecognises a financial liability when it is extinguished i.e. when the obligation specified in the contract is
discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised immediately in the statement of profit or loss.
In the context of IBOR reform, the Group’s assessment of whether a change to an amortised cost financial instrument is
substantial, is made after applying the practical expedient introduced by IBOR reform Phase 2. This requires the transition
from an IBOR to an RFR to be treated as a change to a floating interest rate, as described in Note 3.13 above.
f) Modification
When the contractual cash flows of a financial instrument are renegotiated or otherwise modified and the renegotiation or
modification does not result in the derecognition of that financial instrument, the Group recalculates the gross carrying
amount of the financial instrument and recognises a modification gain or loss immediately within finance income/(cost)-net
at the date of the modification. The gross carrying amount of the financial instrument is recalculated as the present value
of the renegotiated or modified contractual cash flows that are discounted at the financial instrument’s original effective
interest rate.
g) Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when and only
when there is legally enforceable right to offset the recognised amount, and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.
The legally enforceable right is not contingent on future events and is enforceable in the normal course of business, and
in the event of default, insolvency or bankruptcy of the Company or the counterparty.
h) Derivatives
The Group uses derivative financial instruments such as forward exchange contracts to hedge its foreign exchange risks
as well as put options to hedge against its oil price risk. However, such contracts are not accounted for as designated
hedges. Derivatives are initially recognised at fair value on the date a derivative contract is entered and subsequently

remeasured to their fair value at the end of each reporting period. Any gains or losses arising from changes in the fair value
of derivatives are recognised within operating profit in the statement of profit or loss for the period. An analysis of the fair
value of derivatives is provided in Note 5, Financial risk Management.
The Group accounts for financial assets with embedded derivatives (hybrid instruments) in their entirety on the basis of its
contractual cash flow features and the business model within which they are held, thereby eliminating the complexity of
bifurcation for financial assets. For financial liabilities, hybrid instruments are bifurcated into hosts and embedded features.
In these cases, the Group measures the host contract at amortised cost and the embedded features is measured at fair
value through profit or loss.
For the purpose of the maturity analysis, embedded derivatives included in hybrid financial instruments are not separated.
The hybrid instrument, in its entirety, is included in the maturity analysis for non-derivative financial liabilities.
i) Fair value of financial instruments

The Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When available, the Group measures the fair value of an instrument
using quoted prices in an active market for that instrument. A market is regarded as active if quoted prices are readily
available and represent actual and regularly occurring market transactions on an arm’s length basis.
If a market for a financial instrument is not active, the Group establishes fair value using valuation techniques. Valuation
techniques include using recent arm’s length transactions between knowledgeable, willing parties (if available), reference
to the current fair value of other instruments that are substantially the same, and discounted cash flow analysis. The chosen
valuation technique makes maximum use of market inputs, relies as little as possible on estimates specific to the Group,
incorporates all factors that market participants would consider in setting a price, and is consistent with accepted economic
methodologies for pricing financial instruments.
Inputs to valuation techniques reasonably represent market expectations and measure the risk-return factors inherent in
the financial instrument. The Group calibrates valuation techniques and tests them for validity using prices from observable
current market transactions in the same instrument or based on other available observable market data.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price – i.e., the fair value
of the consideration given or received. However, in some cases, the fair value of a financial instrument on initial recognition
may be different to its transaction price. If such fair value is evidenced by comparison with other observable current market
transactions in the same instrument (without modification or repackaging) or based on a valuation technique whose
variables include only data from observable markets, then the difference is recognised in the income statement on initial
recognition of the instrument. In other cases, the difference is not recognised in the income statement immediately but is
recognised over the life of the instrument on an appropriate basis or when the instrument is redeemed, transferred, or sold,
or the fair value becomes observable.
3.20 Share capital

On issue of ordinary shares, any consideration received net of any directly attributable transaction costs is included in
equity. Issued share capital has been translated at the exchange rate prevailing at the date of the transaction and is not
retranslated after initial recognition.
3.21 Earnings per share and dividends
Basic EPS
Basic earnings per share is calculated on the Group’s profit or loss after taxation attributable to the parent entity and on
the basis of weighted average of issued and fully paid ordinary shares at the end of the year.
Diluted EPS
Diluted EPS is calculated by dividing the profit or loss after taxation attributable to the parent entity by the weighted average
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would
be issued on conversion of all the dilutive potential ordinary shares (after adjusting for outstanding share awards arising
from the share-based payment scheme) into ordinary shares.
Dividends
Dividends on ordinary shares are recognised as a liability in the period in which they are approved.
3.22 Post-employment benefits
Defined contribution scheme

The Group contributes to a defined contribution scheme for its employees in compliance with the provisions of the Pension
Reform Act 2014. The scheme is fully funded and is managed by licensed Pension Fund Administrators. Membership of
the scheme is automatic upon commencement of duties at the Group. The Group’s contributions to the defined contribution
scheme are charged to the statement of profit and loss account in the year to which they relate.
The employer contributes 17% while the employee contributes 3% of the qualifying employee's salary.
Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for
the termination of employment. The Group operates a defined contribution plan and it is accounted for based on IAS 19
Employee benefits.
Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate
entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient
assets to pay all employee benefits relating to employee service in the current and prior periods. Under defined contribution
plans the entity’s legal or constructive obligation is limited to the amount that it agrees to contribute to the fund.
Thus, the amount of the post-employment benefits received by the employee is determined by the amount of contributions
paid by an entity (and perhaps also the employee) to a post-employment benefit plan or to an insurance company, together
with investment returns arising from the contributions. In consequence, actuarial risk (that benefits will be less than
expected) and investment risk (that assets invested will be insufficient to meet expected benefits) fall, in substance, on the
employee.
Defined benefit scheme

The Group operates a defined benefit gratuity plan, which requires contributions to be made to a separately administered
fund. The Group also provides certain additional post-employment benefits to employees. These benefits are unfunded.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method and
calculated annually by independent actuaries. The liability or asset recognised in the statement of financial position in
respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets (if any). The present value of the defined benefit obligation is determined by discounting
the estimated future cash outflows using government bonds.
Remeasurements gains and losses, arising from changes in financial and demographic assumptions and experience
adjustments, are recognised immediately in the statement of financial position with a corresponding debit or credit to
retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not
reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the earlier of:
▪ The date of the plan amendment or curtailment; and
▪ The date that the Group recognises related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit obligation and the fair value of the plan
assets.
The Group recognises the following changes in the net defined benefit obligation under employee benefit expenses in
general and administrative expenses:
▪ Service costs comprises current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements.
▪ Net interest cost
3.23 Provisions
Provisions are recognised when
i) the Group has a present legal or constructive obligation as a result of past events;
ii) it is probable that an outflow of economic resources will be required to settle the obligation as a whole; and
iii) the amount can be reliably estimated.
Provisions are not recognised for future operating losses. In measuring the provision:
▪ risks and uncertainties are taken into account;
▪ the provisions are discounted (where the effects of the time value of money is considered to be material) using a pre-
tax rate that is reflective of current market assessments of the time value of money and the risk specific to the liability;
▪ when discounting is used, the increase of the provision over time is recognised as interest expense;

▪ future events such as changes in law and technology, are taken into account where there is subjective audit evidence
that they will occur; and
▪ gains from expected disposal of assets are not taken into account, even if the expected disposal is closely linked to the
event giving rise to the provision.
Decommissioning
Liabilities for decommissioning costs are recognised as a result of the constructive obligation of past practice in the oil and
gas industry, when it is probable that an outflow of economic resources will be required to settle the liability and a reliable
estimate can be made. The estimated costs, based on current requirements, technology, and price levels, prevailing at the
reporting date, are computed based on the latest assumptions as to the scope and method of abandonment.
Provisions are measured at the present value of management’s best estimates of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognised as a finance cost. The corresponding amount is capitalised as
part of the oil and gas properties and is amortised on a unit-of-production basis as part of the depreciation, depletion and
amortisation.
If the change in estimate results in an increase in the decommissioning provision and, therefore, an addition to the carrying
value of the asset, the Group considers whether this is an indication of impairment of the asset as a whole, and if so, tests
for impairment in accordance with IAS 36. If, for mature fields, the revised oil and gas assets net of decommissioning
provisions exceed the recoverable value, that portion of the increase is charged directly to expense.
3.24 Contingencies
A contingent asset or contingent liability is a possible asset or obligation that arises from past events and whose existence
will be confirmed by the occurrence or non-occurrence of uncertain future events. The assessment of the existence of the
contingencies will involve management judgement regarding the outcome of future events.
3.25 Income taxation
i. Current income tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries
and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to be paid to the tax authorities.
ii. Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of
the transaction, affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end
of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in foreign operations where the company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.

iii. Uncertainty over income tax treatments
The Group examines where there is an uncertainty regarding the treatment of an item, including taxable profit or loss, the
tax bases of assets and liabilities, tax losses and credits and tax rates. It considers each uncertain tax treatment separately
or together as a group, depending on which approach better predicts the resolution of the uncertainty. The factors it
considers include:
▪ how it prepares and supports the tax treatment; and
▪ the approach that it expects the tax authority to take during an examination.
If the Group concludes that it is probable that the tax authority will accept an uncertain tax treatment that has been taken
or is expected to be taken on a tax return, it determines the accounting for income taxes consistently with that tax treatment.
If it concludes that it is not probable that the treatment will be accepted, it reflects the effect of the uncertainty in its income
tax accounting in the period in which that determination is made (for example, by recognising an additional tax liability or
applying a higher tax rate).
The Group measures the impact of the uncertainty using methods that best predicts the resolution of the uncertainty. The
Group uses the most likely method where there are two possible outcomes, and the expected value method when there
are a range of possible outcomes.
The Group assumes that the tax authority with the right to examine and challenge tax treatments will examine those
treatments and have full knowledge of all related information. As a result, it does not consider detection risk in the
recognition and measurement of uncertain tax treatments. The Group applies consistent judgements and estimates on
current and deferred taxes. Changes in tax laws or the presence of new tax information by the tax authority is treated as a
change in estimate in line with IAS 8 - Accounting policies, changes in accounting estimates and errors.
Judgements and estimates made to recognise and measure the effect of uncertain tax treatments are reassessed
whenever circumstances change or when there is new information that affects those judgements. New information might
include actions by the tax authority, evidence that the tax authority has taken a particular position in connection with a
similar item, or the expiry of the tax authority’s right to examine a particular tax treatment. The absence of any comment
from the tax authority is unlikely to be, in isolation, a change in circumstances or new information that would lead to a
change in estimate.
3.26 Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
▪ fair values of the assets transferred
▪ liabilities incurred to the former owners of the acquired business
▪ equity interests issued by the group
▪ fair value of any asset or liability resulting from a contingent consideration arrangement, and
▪ fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest
in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s
proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred.
The excess of the:
▪ consideration transferred,
▪ amount of any non-controlling interest in the acquired entity, and
▪ acquisition-date fair value of any previous equity interest in the acquired entity
over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the business acquired, the difference is recognised directly in profit or loss as a
bargain purchase.
3.27 Share based payments

Employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model.

That cost is recognised in employee benefits expense together with a corresponding increase in equity (share-based
payment reserve), over the period in which the service and, where applicable, the performance conditions are fulfilled (the
vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting
date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The expense or credit in profit or loss for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
Service and non-market performance conditions are not taken into account when determining the grant date and for fair
value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the
number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date
fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be
non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate
expensing of an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or service
conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as
vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or
service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognised
is the grant date fair value of the unmodified award provided the original terms of the award are met. An additional expense,
measured as at the date of modification, is recognised for any modification that increases the total fair value of the share-
based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by
the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The
dilutive effect of outstanding awards is reflected as additional share dilution in the computation of diluted earnings per
share.
4. Significant accounting judgements estimates and assumptions

The preparation of the Group’s consolidated historical financial information requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods.
4.1 Judgements
In the process of applying the Group’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the consolidated historical financial information:
i. OMLs 4, 38 and 41
OMLs 4, 38, 41 are grouped together as a cash generating unit for the purpose of impairment testing. These three OMLs
are grouped together because they each cannot independently generate cash flows. They currently operate as a single
block sharing resources for generating cash flows. Crude oil and gas sold to third parties from these OMLs are invoiced
when the Group has an unconditional right to receive payment.
ii. Deferred tax asset

Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related
tax benefit through future taxable profits is probable.
iii. Lease liabilities

In 2018, the Group entered into a lease agreement for its new head office building. The lease contract contains an option
to purchase and right of first refusal upon an option of sales during the initial non-cancellable lease term of five (5) years.
In determining the lease liability/right-of-use assets, management considered all fact and circumstances that create an
economic incentive to exercise the purchase option. Potential future cash outflow of $45 million, which represents the
purchase price, has not been included in the lease liability because the Group is not reasonably certain that the purchase
option will be exercised. This assessment will be reviewed if a significant event or a significant change in circumstances
occurs which affects the initial assessment and that is within the control of the management.
iv. Foreign currency translation reserve

The Group has used the CBN rate to translate its Dollar currency to its Naira presentation currency. Management has
determined that this rate is available for immediate delivery. If the rate was 10% higher or lower, revenue in Naira would
have increased/decreased by ₦40.4 billion (2021: ₦29 billion). See Note 47 for the applicable translation rates.

v. Consolidation of Elcrest
On acquisition of 100% shares of Eland Oil and Gas Plc, the Group acquired indirect holdings in Elcrest Exploration and
Production (Nigeria) Limited. Although the Group has an indirect holding of 45% in Elcrest, Elcrest has been consolidated
as a subsidiary for the following basis:
▪ Eland Oil and Gas Plc has controlling power over Elcrest due to its representation on the board of Elcrest, and clauses
contained in the Share Charge agreement and loan agreement which gives Eland the right to control 100% of the voting
rights of shareholders.
▪ Eland Oil and Gas Plc is exposed to variable returns from the activities of Elcrest through dividends and interests.
▪ Eland Oil and Gas Plc has the power to affect the amount of returns from Elcrest through its right to direct the activities
of Elcrest and its exposure to returns.
vi. Revenue recognition
Performance obligations
The judgments applied in determining what constitutes a performance obligation will impact when control is likely to pass
and therefore when revenue is recognised i.e. over time or at a point in time. The Group has determined that only one
performance obligation exists in oil contracts which is the delivery of crude oil to specified ports. Revenue is therefore
recognised at a point in time.
For gas contracts, the performance obligation is satisfied through the delivery of a series of distinct goods. Revenue is
recognised over time in this situation as gas customers simultaneously receive and consume the benefits provided by the
Group’s performance. The Group has elected to apply the ‘right to invoice’ practical expedient in determining revenue from
its gas contracts. The right to invoice is a measure of progress that allows the Group to recognise revenue based on
amounts invoiced to the customer. Judgement has been applied in evaluating that the Group’s right to consideration
corresponds directly with the value transferred to the customer and is therefore eligible to apply this practical expedient.
Significant financing component

The Group has entered into an advance payment contract with Mercuria for future crude oil to be delivered. The Group
has considered whether the contract contains a financing component and whether that financing component is significant
to the contract, including both of the following;
a) The difference, if any, between the amount of promised consideration and cash selling price and;
b) The combined effect of both the following:

▪ The expected length of time between when the Group transfers the crude to Mercuria and when payment for the
crude is received and;
▪ The prevailing interest rate in the relevant market.
The advance period is greater than 12 months. In addition, the interest expense accrued on the advance is based on a
comparable market rate. Interest expense has therefore been included as part of finance cost.
Transactions with Joint Operating arrangement (JOA) partners

The treatment of underlift and overlift transactions is judgmental and requires a consideration of all the facts and
circumstances including the purpose of the arrangement and transaction. The transaction between the Group and its JOA
partners involves sharing in the production of crude oil, and for which the settlement of the transaction is non-monetary.
The JOA partners have been assessed to be partners not customers. Therefore, shortfalls or excesses below or above
the Group’s share of production are recognised in other income/ (expenses) - net.
vii. Exploration and evaluation assets

The accounting for exploration and evaluation (‘E&E’) assets require management to make certain judgements and
assumptions, including whether exploratory wells have discovered economically recoverable quantities of reserves.
Designations are sometimes revised as new information becomes available. If an exploratory well encounters hydrocarbon,
but further appraisal activity is required in order to conclude whether the hydrocarbons are economically recoverable, the
well costs remain capitalised as long as sufficient progress is being made in assessing the economic and operating viability
of the well. Criteria used in making this determination include evaluation of the reservoir characteristics and hydrocarbon
properties, expected additional development activities, commercial evaluation and regulatory matters. The concept of
‘sufficient progress’ is an area of judgement, and it is possible to have exploratory costs remain capitalised for several
years while additional drilling is performed or the Group seeks government, regulatory or partner approval of development
plans.

viii. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker.
The Board of directors has appointed a steering committee which assesses the financial performance and position of the
Group and makes strategic decisions. The steering committee, which has been identified as being the chief operating
decision maker, consists of the chief financial officer, the Vice President (Finance), the Director (New Energy) and the
financial reporting manager. See further details in note 6.
4.2 Estimates and assumptions

The key assumptions concerning the future and the other key source of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are described below. The Group based its assumptions and estimates on parameters available when the
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments may
change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are
reflected in the assumptions when they occur.
The following are some of the estimates and assumptions made:
i. Defined benefit plans

The cost of the defined benefit retirement plan and the present value of the retirement obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases, mortality rates and changes in
inflation rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. The parameter most subject to change is the discount rate. In determining the appropriate
discount rate, management considers market yield on federal government bonds in currencies consistent with the
currencies of the post-employment benefit obligation and extrapolated as needed along the yield curve to correspond with
the expected term of the defined benefit obligation.
The rates of mortality assumed for employees are the rates published in 67/70 ultimate tables, published jointly by the
Institute and Faculty of Actuaries in the UK.
ii. Oil and gas reserves

Proved oil and gas reserves are used in the units of production calculation for depletion as well as the determination of the
timing of well closure for estimating decommissioning liabilities and impairment analysis. There are numerous uncertainties
inherent in estimating oil and gas reserves. Assumptions that are valid at the time of estimation may change significantly
when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production
costs or recovery rates may change the economic status of reserves and may ultimately result in the reserves being
restated.
iii. Share-based payment reserve

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model,
which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate
inputs to the valuation model including the expected life of the share award or appreciation right, volatility and dividend
yield and making assumptions about them. The Group measures the fair value of equity-settled transactions with
employees at the grant date. The assumptions and models used for estimating fair value for share-based payment
transactions are disclosed in note 27.4.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. Such estimates and assumptions are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances.
iv. Provision for decommissioning obligations

Provisions for environmental clean-up and remediation costs associated with the Group’s drilling operations are based on
current constructions, technology, price levels and expected plans for remediation. Actual costs and cash outflows can
differ from estimates because of changes in public expectations, prices, discovery and analysis of site conditions and
changes in clean-up technology.
v. Property, plant and equipment

The Group assesses its property, plant and equipment, including exploration and evaluation assets, for possible
impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be
recoverable, or at least at every reporting date.
If there are low oil prices or natural gas prices during an extended period, the Group may need to recognise significant
impairment charges. The assessment for impairment entails comparing the carrying value of the cash-generating unit with
its recoverable amount, that is, higher of fair value less cost to dispose and value in use. Value in use is usually determined
on the basis of discounted estimated future net cash flows. Determination as to whether and how much an asset is impaired
involves management estimates on highly uncertain matters such as future commodity prices, the effects of inflation on
operating expenses, discount rates, production profiles and the outlook for regional market supply-and-demand
conditions for crude oil and natural gas.
During the year, the Group carried out an impairment assessment on OML 4,38 and 41, OML 56, OML 53, OML 40 and
OML 17. The Group used the higher of the fair value less cost to dispose and the value in use in determining the recoverable
amount of the cash-generating unit. In determining the value, the Group uses a forecast of the annual net cash flows over
the life of proved plus probable reserves, production rates, oil and gas prices, future costs (excluding (a) future
restructurings to which the entity is not yet committed; or (b) improving or enhancing the asset’s performance) and other
relevant assumptions based on the year-end Competent Persons Report (CPR). The pre-tax future cash flows are adjusted
for risks specific to the forecast and discounted using a pre-tax discount rate which reflects both current market
assessment of the time value of money and risks specific to the asset.
Management considers whether a reasonable possible change in one of the main assumptions will cause an impairment
and believes otherwise (see note 16.1).
vi. Useful life of other property, plant and equipment

The Group recognises depreciation on other property, plant and equipment on a straight-line basis in order to write-off the
cost of the asset over its expected useful life. The economic life of an asset is determined based on existing wear and tear,
economic and technical ageing, legal and other limits on the use of the asset, and obsolescence. If some of these factors
were to deteriorate materially, impairing the ability of the asset to generate future cash flow, the Group may accelerate
depreciation charges to reflect the remaining useful life of the asset or record an impairment loss.
vii. Income taxes

The Group is subject to income taxes by the Nigerian tax authority, which does not require significant judgement in terms
of provision for income taxes, but a certain level of judgement is required for recognition of deferred tax assets.
Management is required to assess the ability of the Group to generate future taxable economic earnings that will be used
to recover all deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s
estimates of future cash flows. The estimates are based on the future cash flow from operations taking into consideration
the oil and gas prices, volumes produced, operational and capital expenditure.
viii. Impairment of financial assets

The loss allowances for financial assets are based on assumptions about risk of default, expected loss rates and maximum
contractual period. The Group uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the end
of each reporting period. Details of the key assumptions and inputs used are disclosed in note 5.1.3.
ix. Intangible assets

The contract based intangible assets (licence) were acquired as part of a business combination. They are recognised at
their fair value at the date of acquisition and are subsequently amortised on a straight-line bases over their estimated useful
lives which is also the economic life of the asset. The fair value of contract based intangible assets is estimated using the
multi period excess earnings method. This requires a forecast of revenue and all cost projections throughout the useful life
of the intangible assets. A contributory asset charge that reflects the return on assets is also determined and applied to
the revenue but subtracted from the operating cash flows to derive the pre-tax cash flow. The post-tax cashflows are then
obtained by deducting out the tax using the effective tax rate.
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the
time value of money. The discount rate calculation is based on the specific circumstances of the Group and its operating
segments and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and
equity. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is
based on the interest-bearing borrowings the Group is obliged to service.
5. Financial risk management
5.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks such as market risk (including foreign exchange risk, interest
rate risk and commodity price risk), credit risk and liquidity risk. The Group’s risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
Risk management is carried out by the treasury department under policies approved by the Board of Directors. The Board
provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk and investment of excess liquidity.
Risk Exposure arising from Measurement Management
Match and settle foreign

Future commercial transactions Cash flow
Market risk – denominated cash inflows
Recognised financial assets and liabilities forecasting
foreign exchange with foreign denominated
not denominated in US dollars. Sensitivity analysis
cash outflows.
Market risk – Interest bearing loans and borrowings at Review refinancing

Sensitivity analysis
interest rate variable rate opportunities
Market risk –
Sensitivity analysis Oil price hedges
commodity prices Future sales transactions
Cash and bank balances, trade receivables Aging analysis Diversification of bank
Credit risk
and derivative financial instruments. Credit ratings deposits.
Availability of committed
Rolling cash flow
Liquidity risk Borrowings and other liabilities credit lines and borrowing
forecasts
facilities
5.1.1 Market Risk

Market risk is the risk of loss that may arise from changes in market factors such as foreign exchange rates, interest rates
and commodity prices.
i. Commodity price risk

The Group is exposed to the risk of fluctuations on crude oil prices. The uncertainty around the rate at which oil prices
increase or decline led to the Group’s decision to enter into an option contract to insure the Group’s revenue against
adverse oil price movements.
Crude Hedge
During the last quarter of 2022, the Group entered into an economic crude oil hedge contract with an average strike price
of ₦22,357 ($50/bbl.) for 3 million barrels at an average premium price of ₦478 ($1.1 /bbl.) was agreed at the contract
dates.
These contracts, which will commence on 1 January 2023, are expected to reduce the volatility attributable to price
fluctuations of oil. The Group did not pre-pay any premium in the current year but the premium for 3 million barrels will be
settled on a deferred basis. An unrealized fair value gain of ₦64 million, $150 thousand have been recognized in 2022.
The termination date is 31 March and 30 June 2023 respectively. Hedging the price volatility of forecast oil sales is in
accordance with the risk management strategy of the Group.
The maturity of the crude oil hedge contracts the Group holds is shown in the table below:
Less than 6 to 9 10 to 12 Above 12 Fair value Fair value

6 months months months months Total ₦ million $’000
Crude oil hedges
2,000,000 1,000,000 - - 3,000,000 1,435 3,210
Volume (bbl.)
1,435 3,210
Less than 6 to 9 10 to 12 Above 12 Fair value Fair value

6 months months months months Total ₦ million $’000

Crude oil hedges
2,000,000 1,000,000 - - 3,000,000 1,543 3,745
Volume (bbl.)
1,543 3,745
The following table summarises the impact of the commodity options on the Group’s profit before tax due to a 10 % change
in market inputs, with all other variables held constant:
Effect on other Effect on other

Effect on profit components of Effect on profit components of
before tax equity before tax before tax equity before tax
2022 2022 2021 2021
Increase/decrease in market inputs ₦ million ₦ million ₦ million ₦ million
+10% 144 - 154 -
-10% (144) - (154) -

2022 2022 2021 2021
Increase/decrease in market inputs $’000 $’000 $’000 $’000
+10% 321 375 -
-10% (321) (375) -
The Group may be exposed to business risks from fluctuations in the future prices of crude oil and gas. The following table
summarises the impact on the Group’s profit before tax of a 10% change in crude oil prices, with all other variables held
constant:

2022 2022 2021 2021
Increase/decrease in crude oil prices ₦ million ₦ million ₦ million ₦ million
+10% 35,619 - 24,765 -
-10% (35,619) - (24,765) -

2022 2022 2021 2021
Increase/decrease in crude oil prices $’000 $’000 $’000 $’000
+10% 83,934 - 61,838 -
-10% (83,934) - (61,838) -
The following table summarises the impact on the Group’s profit before tax of a 10% change in gas prices, with all other
variables held constant:

2022 2022 2021 2021
Increase/decrease in gas price ₦ million ₦ million ₦ million ₦ million
+10% 4,772 - 4,598 -
-10% (4,772) - (4,598) -

2022 2022 2021 2021
Increase/decrease in gas price $’000 $’000 $’000 $’000
+10% 11,245 - 11,481 -
-10% (11,245) - (11,481) -
ii. Cash flow and fair value interest rate risk

The Group’s exposure to interest rate risk relates primarily to interest bearing loans and borrowings. The Group has both
variable and fixed interest rate borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate
risk which is partially offset by cash and short-term fixed deposit held at variable rates. Fixed rate borrowings only give rise
to interest rate risk if measured at fair value. The Group’s borrowings are not measured at fair value and are denominated
in US dollars. The Group is exposed to cash flow interest rate risk on short-term deposits to the extent that the significant
increases and reductions in market interest rates would result in a decrease in the interest earned by the Group.
The contractual re-pricing date of the interest-bearing loans and borrowings is between 3-6 months. The exposure of the
Group’s variable interest-bearing loans and borrowings at the end of the reporting period is shown below.
2022 2021 2022 2021

₦ million ₦ million $’000 $’000
Corporate loan 8,176 48,828 3,655 118,535
The following table demonstrates the sensitivity of the Group’s profit before tax to changes in SOFR rate, with all other
variables held constant.

2022 2022 2022 2022
Increase/decrease in interest rate ₦ million ₦ million $’000 $’000
+2% 73 - 164 -
-2% (73) - (164) -

2021 2021 2021 2021
Increase/decrease in interest rate ₦ million ₦ million $’000 $’000
+1% 49 119 -
-1% (49) (119) -
5.1.2 Foreign exchange risk

The Group has transactional currency exposures that arise from sales or purchases in currencies other than the respective
functional currency. The Group is exposed to exchange rate risk to the extent that balances and transactions are
denominated in a currency other than the US dollar.
The Group holds most of its cash and bank balances in US dollar. However, the Group maintains deposits in Naira in order
to fund ongoing general and administrative activities and other expenditure incurred in this currency. Other monetary assets
and liabilities which give rise to foreign exchange risk include trade and other receivables, trade and other payables. The
following table demonstrates the carrying value of monetary assets and liabilities exposed to foreign exchange risks for
Naira exposures at the reporting date:
2022 2021 2022 2021

Financial assets
Cash and bank balances 154,907 114,773 346,447 278,622
Trade and other receivables 692 580 1,547 1,408
Contract assets 3,312 1,669 7,408 4,050
158,911 117,022 355,402 284,080
Trade and other payables (182,961) (102,823) (409,189) (249,612)
Net exposure to foreign exchange risk (24,050) 14,199 (53,787) 34,468
The following table demonstrates the carrying value of monetary assets and liabilities exposed to foreign exchange risks
for Pound exposures at the reporting date:
2022 2021 2022 2021

Financial assets
Cash and bank balances 1,342 900 3,001 2,186
Trade and other receivables 4,157 35,863 9,297 87,062
5,499 36,763 12,298 89,248
Trade and other payables - - - -
Net exposure to foreign exchange risk 5,499 36,763 12,298 89,248
Sensitivity to foreign exchange risk is based on the Group’s net exposure to foreign exchange risk due to Naira and pound
denominated balances. If the Naira strengthens or weakens by the following thresholds, the impact is as shown in the table
below:

components of components of
equity before Effect on profit equity before
Effect on profit tax before tax tax
before tax 2022 2022 2022
Increase/decrease in foreign exchange risk 2022
+10% 2,186 - 4,890 -
-10% (2,672) - (5,796) -

equity before Effect on profit equity before
Effect on profit tax before tax tax
before tax 2021 2021 2021
Increase/decrease in foreign exchange risk 2021
+5% (677) - (1,641) -
-5% 748 - 1,814 -

If the Pounds strengthens or weakens by the following thresholds, the impact is as shown in the table below:

Effect on profit equity before Effect on profit equity before
before tax tax before tax tax
2022 2022 2022 2022
Increase/decrease in foreign exchange risk ₦ million ₦ million $’000 $’000
+10% (500) - (1,118) -
-10% 611 - 1,366 -

Effect on profit equity before Effect on profit equity before
before tax tax before tax tax
2021 2021 2021 2021
Increase/decrease in foreign exchange risk ₦ million ₦ million $’000 $’000
+5% (1,751) - (4,250) -
-5% 1,935 - 4,697 -
5.1.3 Credit risk

Credit risk refers to the risk of a counterparty defaulting on its contractual obligations resulting in financial loss to the Group.
Credit risk arises from cash and bank balances as well as credit exposures to customers (i.e., Mercuria, Shell western,
Pillar, Azura, Geregu Power, Sapele Power and Nigerian Gas Marketing Company (NGMC) receivables), and other parties
(i.e., NNPC receivables, NEPL receivables and other receivables).
a) Risk management
The Group is exposed to credit risk from its sale of crude oil to Mercuria and Shell western. There is a 30-day payment
term after Bill of Lading date in the off-take agreement with Mercuria (OMLs 4, 38 &41) which expired in December 2022.
The Group also has an off-take agreement with Shell Western Supply and Trading Limited which expires in September
2023. The Group is exposed to further credit risk from outstanding cash calls from Nigerian National Petroleum Corporation
Exploration Limited (NEPL) and Nigerian National Petroleum Corporation (NNPC).
In addition, the Group is exposed to credit risk in relation to the sale of gas to its customers.
The credit risk on cash and bank balances is managed through the diversification of banks in which the balances are held.
The risk is limited because the majority of deposits are with banks that have an acceptable credit rating assigned by an
international credit agency. The Group’s maximum exposure to credit risk due to default of the counterparty is equal to the
carrying value of its financial assets.

The Group has six types of financial assets that are subject to IFRS 9’s expected credit loss model. Contract assets are
also subject to the expected credit loss model, even though they are not financial assets, as they have substantially the
same credit risk characteristics as trade receivables. The impairment of receivables is disclosed in the table below.
▪ Nigerian National Petroleum Corporation Exploration Limited (NEPL) receivables
▪ Trade receivables
▪ Contract assets
▪ Other receivables
▪ Cash and bank balances
Reconciliation of impairment on financial assets
Notes ₦’million $’000

As at 1 January 2022 30,908 75,032

Decrease in provision for Nigerian National Petroleum Corporation Exploration
Limited (NEPL) receivables 23.2 (3,700) (8,720)
Decrease in provision for Nigerian National Petroleum Corporation (NNPC)
receivables 23.3 (325) (766)
Increase in provision for trade receivables 23.1 1,383 3,259
Increase in provision for cash and bank balances: short term fixed deposits 26 - -
Increase in receivables from joint venture (ANOH) 23.5 126 296
Increase in provision of other receivables - Crestar 23.4 5,076 11,961
Increase in contract asset 24 170 402
Impairment charge from the profit or loss 2,730 6,432
Exchange difference - -
As at 31 December 2022 33,638 81,464

As at 1 January 2021 17,689 52,471
Increase in provision for Nigerian National Petroleum Corporation Exploration
Limited (NEPL) receivables 23.2 1,848 4,614
Increase in provision for Nigerian National Petroleum Corporation (NNPC)
receivables 23.3 108 270
Increase in provision for trade receivables 23.1 7,079 17,676
Increase in provision for cash and bank balances: short term fixed deposits 26 - -
Increase in provision of other receivables 23.4 - -
Increase in contract asset 24 - 1
Impairment charge to the profit or loss 9,035 22,561
Exchange difference 4,184 -
As at 31 December 2021 30,908 75,032
The parameters used to determine impairment for NEPL receivables, NNPC receivables, other receivables and short-term
fixed deposits are shown below. For all receivables presented in the table, the respective 12-month Probability of Default
(PD) equate the lifetime PD for stage 2 as the maximum contractual period over which the Group is exposed to credit risk
arising from the receivables is less than 12 months.
Nigerian National
Petroleum Corporation Nigerian National
Exploration Limited Petroleum Corporation Other Short term fixed
(NEPL) receivables (NNPC) receivables receivables deposits
Probability of The 12-month sovereign The 12-month The PD for stage 3 is The PD for base
Default (PD) cumulative PD for base sovereign 100%. case, downturn and
case, downturn and cumulative PD for base upturn is 4.11%,
upturn respectively is 4.1 case, downturn and 4.32% and 3.90%
1%, 4.32%, and upturn respectively is 4. respectively for
3.90%, for stage 1 and 11% ,4.32%, and stage 1 and stage
stage 2. The PD for 3.90%, for stage 1 and 2. The PD for stage
stage 3 is 100%. stage 2. The PD for 3 is 100%.
stage 3 is 100%.

Loss Given The 12-month LGD and The 12-month LGD and The 12-month LGD The 12-month LGD
Default (LGD) lifetime LGD were lifetime LGD were and lifetime LGD and lifetime LGD
determined using determined using were determined were determined
Moody’s recovery Moody’s recovery using Management’s using the average
rate and mapped based rate and mapped estimate of expected recovery rate for
on the priority rating of based on the priority cash recoveries. Moody’s senior
the receivable, for rating of the unsecured
emerging economies. receivable, for corporate bonds for
emerging economies. emerging
economies.
Exposure at The EAD is the The EAD is the The EAD is the The EAD is the
default (EAD) maximum exposure of maximum exposure of maximum exposure maximum exposure
the receivable to credit the receivable to credit of the receivable to of the short-term
risk. risk. credit risk. fixed deposits to
credit risk.
Macroeconomi The historical The historical The historical gross The historical gross
c indicators inflation and Brent oil inflation and Brent oil domestic product domestic product
price were used. price were used. (GDP) growth rate in (GDP) growth rate
Nigeria and crude oil in Nigeria and crude
price were used. oil price were used.
Probability 20%, 50%, and 30%, 20%, 50%, and 30%, 20%, 50%, and 30%, 20%, 50%, and
weightings was used as the weights was used as the of historical GDP 30%, of historical
for the base, upturn and weights for the base, growth rate GDP growth rate
downturn ECL modelling upturn and downturn observations fall observations fall
scenarios respectively. ECL modelling within acceptable within acceptable
scenarios respectively. bounds, periods of bounds, periods of
boom and periods of boom and periods
downturn of downturn
respectively. respectively.
The Group considers both quantitative and qualitative indicators in classifying its receivables into the relevant stages for
impairment calculation as shown below:
▪ Stage 1: This stage includes financial assets that are less than 30 days past due (Performing).
▪ Stage 2: This stage includes financial assets that have been assessed to have experienced a significant increase in
credit risk using the days past due criteria (i.e. the outstanding receivables amounts are more than 30 days past due
but less than 90 days past due) and other qualitative indicators such as the increase in political risk concerns or other
macro-economic factors and the risk of legal action, sanction or other regulatory penalties that may impair future
financial performance.
▪ Stage 3: This stage includes financial assets that have been assessed as being in default (i.e., receivables that are
more than 90 days past due) or that have a clear indication that the imposition of financial or legal penalties and/or
sanctions will make the full recovery of indebtedness highly improbable.
i. Nigerian National Petroleum Corporation Exploration Limited (NEPL) receivables

NEPL receivables represent the outstanding cash calls due to Seplat from its Joint venture partner, Nigerian Petroleum
Development Company. The Group applies the IFRS 9 general model for measuring expected credit losses (ECL). This
requires a three-stage approach in recognising the expected loss allowance for NEPL receivables.
The ECL recognised for the period is a probability-weighted estimate of credit losses discounted at the effective interest
rate of the financial asset. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between
the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive).
The ECL was calculated based on actual credit loss experience from 2014, which is the date the Group initially became a
party to the contract. The following analysis provides further detail about the calculation of ECLs related to these assets.
The Group considers the model and the assumptions used in calculating these ECLs as key sources of estimation
uncertainty.
There was no write-off during the year (2021: Nil). (See details in Note 23.2).
Stage 1 Stage 2 Stage 3

31 December 2022 12-month ECL Lifetime ECL Lifetime ECL Total

₦’million ₦’million ₦’million ₦’million
Gross Exposure at Default (EAD) - 41,853 - 41,853
Loss allowance - (1,467) - (1,467)
Net Exposure at Default (EAD) - 40,386 - 40,386

12-month ECL Lifetime ECL Lifetime ECL Total
31 December 2021 ₦’million ₦’million ₦’million ₦’million
Loss allowance - (4,943) - (4,943)

31 December 2022 $’000 $’000 $’000 $’000
Loss allowance - (3,280) - (3,280)

31 December 2021 $’000 $’000 $’000 $’000
Loss allowance - (12,000) - (12,000)
ii. Nigerian National Petroleum Corporation (NNPC) receivables

NNPC receivables represent the outstanding cash calls due to Seplat from its Joint Operating Arrangement (JOA) partner,
Nigerian National Petroleum Corporation. The Group applies the general model for measuring expected credit losses (ECL)
which uses a three-stage approach in recognising the expected loss allowance for NNPC receivables.
The ECL was calculated based on actual credit loss experience from 2016, which is the date the Group initially became a
party to the contract. The following analysis provides further detail about the calculation of ECLs related to these assets.
The Group considers the model and the assumptions used in calculating these ECLs as key sources of estimation
uncertainty. The tables below show the expected credit losses for the year ended 31 December 2022 and 31 December
2021.

Loss allowance - (380) - (380)

31 December 2022 $’000 $’000 $’000 $’000
Loss allowance - (849) - (849)

Gross Exposure at Default (EAD) - 8,269 2,550 10,819
Loss allowance - (80) (585) (665)
Net Exposure at Default (EAD) - 8,189 1,965 10,154

31 December 2021 $’000 $’000 $’000 $’000
Gross Exposure at Default (EAD) - 20,075 6,190 26,265
Loss allowance - (195) (1,420) (1,615)
Net Exposure at Default (EAD) - 19,880 4,770 24,650
iii. Trade receivables (Gerugu Power, Sapele Power, Nigerian Gas Marketing Company, Pan ocean,
Oghareki and Summit)
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and contract assets.
The impairment of trade receivables (Gerugu Power, Sapele Power, NGMC, Pan Ocean, Oghareki and Summit) was
estimated by applying the provision matrix. The expected loss rate was calculated as the percentage of the receivable that
is deemed uncollectible during a particular period. The expected loss rates as at 31 December 2022 and 31 December
2021 are as follows:
1-30 31-60 61-90 91- 120 Above

Current days days days days 120 days Total
31 December 2022 ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Gross carrying amount 112 1,030 176 488 488 23,430 25,724
Expected loss rate 12% 12% 13% 29% 29% 87%
Lifetime ECL (Note 23.1) (14) (128) (23) (143) (143) (9,980) (10,430)
Total 98 903 153 345 345 13,450 15,294
1-30 31-60 61-90 91- 120 Above

Gross carrying amount - 20,206 386 2,775 2,264 8,665 34,296

Lifetime ECL
- (326) (167) (1,069) (1,578) (5,244) (8,384)
(Note 23.1)
Total - 19,880 219 1,706 686 3,421 25,912
1-30 31-60 61-90 91- 120 Above

31 December 2022 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Gross carrying amount 250 2,307 395 1,092 1,092 52,400 57,536
Lifetime ECL
(31) (286) (51) (319) (319) (22,318) (23,325)
(Note 23.1)
Total 219 2,021 344 773 773 30,081 34,211
1-30 31-60 61-90 91- 120 Above

31 December 2021 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Gross carrying amount - 49,052 936 6,737 5,496 21,035 83,256
Lifetime ECL (Note
- (792) (405) (2,595) (3,831) (12,729) (20,352)
23.1)
Total - 48,260 531 4,142 1,665 8,306 62,904
iv. Trade receivables (Mercuria)

The impairment of trade receivables (Mercuria) was estimated by applying the provision matrix. The expected loss rate
was calculated as the percentage of the receivable that is deemed uncollectible during a particular period. The expected
loss rates as at 31 December 2022 was nil.
v. Trade receivables (Pillar)

The impairment of trade receivables (Pillar) was estimated by applying the provision matrix. The expected loss rate was
calculated as the percentage of the receivable that is deemed uncollectible during a particular period. The expected loss
rates as at 31 December 2022 and 31 December 2021 are as follows:
1-30 31-60 61-90 91- 120 Above

Gross carrying amount 435 3,912 - 34 34 323 4,738
Lifetime ECL (Note 23.1) (23) (202) - (2) (2) (323) (552)
Total 412 3,710 - 32 32 - 4,186
1-30 31-60 61-90 91- 120 Above
Gross carrying amount - 11 - - 391 402
Lifetime ECL (Note 23.1) - - - - - (391) (391)
Total - - 11 - - - 11

1-30 31-60 61-90 91- 120 Above
31 December 2022 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Gross carrying amount 972 8,750 - 76 76 722 10,595
Lifetime ECL (Note 23.1) (51) (453) - (4) (4) (722) (1,235)
Total 921 8,297 - 71 71 - 9,361
1-30 31-60 61-90 91- 120 Above

31 December 2021 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Gross carrying amount - - 26 - - 948 974
Lifetime ECL (Note 23.1) - - (1) - - (948) (949)
Total - - 25 - - - 25
vi. Contract assets

The expected credit losses on contract assets was estimated by applying the provision matrix. The expected loss rate was
calculated as the percentage of the receivable that is deemed during a particular period. The expected loss rates as at 31
December 2022 and 2021 is shown below:
1-30 31-60 61-90 91- 120 Above

Gross carrying amount 3,493 - - - - - 3,493
Expected loss rate 0.05% 0.05% 0.1% 0.2% 0.2% 5.29%
Lifetime ECL (Note 24) (180) - - - - - (180)
Total 3,313 - - - - - 3,313
1-30 31-60 61-90 91- 120 Above

Lifetime ECL (Note
- - - - - - -
23.1)
Total 1,679 - - - - - 1,679
1-30 31-60 61-90 91- 120 Above

31 December 2022 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Lifetime ECL (Note 24) (403) - - - - - (403)
Total 7,408 - - - - - 7,408

1-30 31-60 61-90 91- 120 Above
31 December 2021 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Lifetime ECL (Note
(1) - - - - - -
23.1)
Total 4,076 - - - - - 4,076
vii. Other receivables

Other receivables are amounts outside the usual operating activities of the Group. Included in other receivables is a
receivable amount on an investment that is no longer being pursued. The Group applied the general approach in estimating
the expected credit loss.

Gross Exposure at Default (EAD) - - 47,364 47,364
Loss allowance - - (18,668) (18,668)
Exchange difference - - (6,944) (6,944)
Net Exposure at Default (EAD) - - 21,752 21,752

Loss allowance - - (15,303) (15,303)
Exchange difference - - (3,365) (3,365)

31 December 2022 $’000 $’000 $’000 $’000
Loss allowance - - (57,280) (57,280)

31 December 2021 $’000 $’000 $’000 $’000
Loss allowance - - (45,319) (45,319)

viii. Cash and cash equivalent
Short-term fixed deposits

The Group applies the IFRS 9 general model for measuring expected credit losses (ECL) which uses a three-stage
approach in recognising the expected loss allowance for cash and cash equivalents. The ECL was calculated as the
probability weighted estimate of the credit losses expected to occur over the contractual period of the facility after
considering macroeconomic indicators.

Gross Exposure at Default (EAD) 22,906 - - 22,906
Loss allowance (110) - - (110)
Net Exposure at Default (EAD) 22,796 - - 22,796

31 December 2022 $’000 $’000 $’000 $’000

31 December 2021 $’000 $’000 $’000 $’000
Other cash and bank balances

The group assessed the other cash and bank balances to determine their expected credit losses. Based on this
assessment, they identified the expected credit loss to be nil as at 31 December 2022 (2021: nil). The assets are assessed
to be in stage 1.
Credit quality of cash and bank balances (including restricted cash)

The credit quality of the Group’s cash and bank balances are assessed on the basis of external credit ratings (Fitch national
long-term ratings) as shown below cash and bank balances are all in Stage 1 based on the ECL assessment:

2022 2021 2022 2021
₦ million ₦ million $‘000 $‘000
Non-rated - - - -
BBB- 13,543 24,903 30,289 60,455
A 415 134 926 326
A+ 121,513 94,973 271,774 230,557
AA- 24,513 10,274 54,824 24,941
AA+ - - - -
AAA- - 10,087 - 24,486
AAA 31,618 70,713
191,602 140,371 428,526 340,765
Allowance for impairment recognised during the year (Note 26) (110) (101) (246) (246)
Net cash and cash bank balances 191,492 140,270 428,280 340,519
c) Maximum exposure to credit risk – financial instruments subject to impairment

The Group estimated the expected credit loss on NEPL receivables, NNPC receivables and short-term fixed deposits by
applying the general model. The gross carrying amount of financial assets represents the Group’s maximum exposure to
credit risks on these assets.
All financial assets impaired using the General model (NEPL, NNPC and short-term fixed deposits) are graded under the
standard monitoring credit grade (rated B- under Standard and Poor’s unmodified ratings) and are classified under Stage
1, except for the other receivables which are graded under the investment grade (rated AA under Standard and Poor’s
unmodified ratings) and classified in Stage 2 and Stage 3.
d) Roll forward movement in loss allowance

The loss allowance recognised in the period is impacted by a variety of factors, as described below:
▪ Transfers between Stage 1 and Stage 2 or Stage 3 due to financial instruments experiencing significant increases (or
decreases) of credit risk or becoming credit impaired in the period, and the consequent “step up” (or “step down”)
between 12-month and lifetime ECL;
▪ Additional allowances for new financial instruments recognised during the period, as well as releases for financial
instruments derecognised in the period;
▪ Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular
refreshing of inputs to models;
▪ Discount unwind within ECL due to passage of time, as ECL is measured on a present value basis;
▪ Foreign exchange retranslation for assets dominated in foreign currencies and other movements; and
▪ Financial assets derecognised during the period and write-off of receivables and allowances related to assets.
The following tables explain the changes in the loss allowance between the beginning and end of the annual period due to
these factors:
Nigerian National Petroleum Corporation Exploration (NEPL) receivables

Purchased
12-month Lifetime Lifetime credit-
ECL ECL ECL impaired Total
₦ million ₦ million ₦ million ₦ million ₦ million
Loss allowance as at 1 January 2022 - 4,943 - - 4,943

Movements with profit or loss impact (3,700) - - - (3,700)
New financial assets originated or purchased - - - - -
Total net profit or loss charge during the period (3,700) - - - (3,700)
Exchange difference 3,700 (3,476) - - 224
Loss allowance as at 31 December 2022 - 1,467 - - 1,467

Purchased
$’000 $’000 $’000 $’000 $’000
Loss allowance as at 1 January 2022 - 12,000 - - 12,000
Movements with profit or loss impact (8,720) - - - (8,720)
Total net profit or loss charge during the period (8,720) - - - (8,720)
Loss allowances as at 31 December 2022 (8,720) 12,000 - - 3,280
Nigerian National Petroleum Corporation Limited (NNPC) receivables

Purchased
Loss allowance as at 1 January 2022 - 80 585 - 665
Movements with profit or loss impact - (325) - - (325)
Total net profit or loss charge during the period - (325) - - (325)
Exchange difference - 625 (585) - 40
Loss allowance as at 31 December 2022 - 380 - - 380

Purchased
$’000 $’000 $’000 $’000 $’000
Loss allowance as at 1 January 2022 - 195 1,420 - 1,615
Movements with profit or loss impact - (766) - - (766)
Total net profit or loss charge during the period - (766) - - (766)
Loss allowance as at 31 December 2022 - (571) - - 849
Other receivables

Purchased
Loss allowance as at 1 January 2022 - - 18,668 - 18,668
Movements with profit or loss impact - - 5,076 - 5,076
Changes in PDs/LGDs/EADs - - - - -
Transfer to stage 3 - - - - -
Total net profit or loss charge during the period - - 5,076 - 5,076
Other movements with no profit or loss impact
Exchange difference - - 6,944 - 6,944
Loss allowance as at 31 December 2022 - - 25,612 - 25,612

Purchased
$’000 $’000 $’000 $’000 $’000
Loss allowance as at 1 January 2022 - - 45,319 - 45,319
Movements with profit or loss impact - - 11,961 - 11,961
Changes in PDs/LGDs/EADs - - - - -
Transfer to stage 3 - - - - -
Total net profit or loss charge during the period - - 11,961 - 11,961
Loss allowance as at 31 December 2022 - - 57,280 - 57,280
Short-term fixed deposit

Purchased
Loss allowance as at 1 January 2022 101 - - - 101
Movements with profit or loss impact - - - - -
Total net profit or loss charge during the period 101 - - - 101
Exchange difference 9 - - - 9
Loss allowance as at 31 December 2022 110 - - - 110

Purchased
$’000 $’000 $’000 $’000 $’000
Loss allowance as at 1 January 2022 246 - - - 246

Movements with profit or loss impact - - - - -
Total net profit or loss charge during the period 246 - - - 246
Exchange difference - - - - -
Loss allowance as at 31 December 2022 246 - - - 246
e) Estimation uncertainty in measuring impairment loss

The table below shows information on the sensitivity of the carrying amounts of the Group’s financial assets to the methods,
assumptions and estimates used in calculating impairment losses on those financial assets at the end of the reporting
period. These methods, assumptions and estimates have a significant risk of causing material adjustments to the carrying
amounts of the Group’s financial assets.
i. Expected cashflows recoverable

The table below demonstrates the sensitivity of the Group’s profit before tax to a 20% change in the expected cashflows
from financial assets, with all other variables held constant:

2022 2022 2022 2022
Increase/decrease in estimated cashflows

+20% 334 - 747 -
-20% (334) - (747) -
Effect on other Effect on Effect on other

Effect on profit components of profit before components of
before tax equity before tax tax equity before tax
2021 2021 2021 2021
Increase/decrease in estimated cash flows

+20% 148 - 371 -
-20% (148) - (371) -
ii. Significant unobservable inputs

The table below demonstrates the sensitivity of the Group’s profit before tax to movements in the loss given default (LGD)
for financial assets, with all other variables held constant:

2022 2022 2022 2022
Increase/decrease in loss given default

+10% (383) - (902) -
-10% 383 - 902 -

2021 2021 2021 2021

+10% (717) - (1,800) -
-10% 717 - 1,800 -
The table below demonstrates the sensitivity of the Group’s profit before tax to movements in probabilities of default, with
all other variables held constant:

2022 2022 2022 2022
Increase/decrease in probability of default

+10% (361) - (852) -
-10% 361 - 852 -

2021 2021 2021 2021

+10% (679) - (1,704) -
-10% 679 - 1,704 -
The table below demonstrates the sensitivity of the Group’s profit before tax to movements in the forward-looking
macroeconomic indicators, with all other variables held constant:

2022 2022 2022 2022
Increase/decrease in forward looking macroeconomic indicators

+10% (107) - (252) -
-10% 107 - 252 -
2021 2021 2021 2021

+10% (19) - (48) -
-10% 19 - 48 -
5.1.4 Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages
liquidity risk by ensuring that sufficient funds are available to meet its commitments as they fall due.
The Group uses both long-term and short-term cash flow projections to monitor funding requirements for activities and to
ensure there are sufficient cash resources to meet operational needs. Cash flow projections take into consideration the
Group’s debt financing plans and covenant compliance. Surplus cash held is transferred to the treasury department which
invests in interest bearing current accounts and time deposits.
The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed
maturity periods. The table has been drawn based on the undiscounted cash flows of the financial liabilities based on the
earliest date on which the Group can be required to pay.
Effective Less than 1–2 2–3 3–5

Total
interest rate 1 year year years years
% ₦ million ₦ million ₦ million ₦ million ₦ million
31 December 2022
Non – derivatives
Fixed interest rate borrowings
Senior notes 7.75% 11,575 22,837 22,900 324,921 382,233
Variable interest rate borrowings
The Mauritius Commercial Bank Ltd 8.00% + SOFR 5,446 7,523 6,777 1,823 21,569
The Stanbic IBTC Bank Plc 8.00% + SOFR 5,560 7,679 6,918 1,860 22,017
The Standard Bank of South Africa Limited 8.00% + SOFR 3,177 4,389 3,953 1,063 12,582
First City Monument Bank Limited 8.00% + SOFR 1,418 1,959 1,765 475 5,617
Shell Western Supply and Trading Limited 10.5% + SOFR 1,206 1,134 1,058 4,082 7,481
Total variable interest borrowings 16,808 22,684 20,471 9,303 69,266
Other non – derivatives
Trade and other payables** 205,622 - - - 205,622
Lease liability 1,800 (30) 30 - 1,800
207,422 (30) 30 - 207,422
Total 235,805 45,490 43,401 334,224 658,920

Total
interest rate 1 year year years years
31 December 2021
Non – derivatives

Senior notes 7.75% 20,751 20,751 20,751 298,881 361,134
Citibank, N.A., London Branch 8.00% + USD LIBOR 1,298 4,390 6,456 7,650 19,794
Nedbank Limited London 8.00% + USD LIBOR 1,324 4,481 6,590 7,810 20,205
Stanbic IBTC Bank Plc 8.00% + USD LIBOR 757 2,561 3,766 4,463 11,547
The Standard Bank of South Africa

8.00% + USD LIBOR 338 1,143 1,681 1,992 5,154
Limited
RMB International (Mauritius) Limited 10.5% + USD LIBOR 486 924 876 4,422 6,708
Lease liability 1,950 66 28 - 2,044
153,154 66 28 - 153,248
Total 178,108 34,316 40,148 325,218 577,790

interest rate 1 year year years years Total
% $’000 $’000 $’000 $’000 $’000
31 December 2022
Non – derivatives
Senior notes 7.75% 25,887 51,075 51,215 726,682 854,859
The Mauritius Commercial Bank Ltd 8.00% + SOFR 12,181 16,825 15,156 4,076 48,238
The Stanbic IBTC Bank Plc 8.00% + SOFR 12,434 17,176 15,472 4,161 49,243
The Standard Bank of South Africa Limited 8.00% + SOFR 7,105 9,815 8,841 2,378 28,139
First City Monument Bank Limited 8.00% + SOFR 3,172 4,382 3,947 1,062 12,563
Shell Western Supply and Trading Limited 10.5% + SOFR 2,695 2,536 2,368 9,130 16,729
Lease liability 4,025 (67) 67 - 4,025
463,894 (67) 67 - 463,894
Total 527,368 101,742 97,066 747,489 1,473,665

% $’000 $’000 $’000 $’000 $’000
31 December 2021
Non – derivatives
Senior notes
7.75% 50,375 50,375 50,375 725,563 876,688
Citibank, N.A., London Branch 8.00% + USD LIBOR 3,150 10,656 15,672 18,572 48,050
Nedbank Limited London 8.00% + USD LIBOR 3,215 10,878 15,998 18,959 49,050
Stanbic IBTC Bank Plc 8.00% + USD LIBOR 1,837 6,216 9,142 10,834 28,029
The Standard Bank of South Africa Limited 8.00% + USD LIBOR 820 2,775 4,081 4,836 12,512
RMB International (Mauritius) Limited 10.5% + USD LIBOR 1,179 2,243 2,126 10,734 16,282
Lease liability 4,733 160 67 - 4,960
371,791 160 67 - 372,018
Total 432,367 83,303 97,461 789,498 1,402,629

**Trade and other payables (exclude non-financial liabilities such as provisions, taxes, pension and other non-contractual payables)
5.1.5 Fair value measurements

Set out below is a comparison by category of carrying amounts and fair value of all financial instruments:
Carrying amount Fair value

2022 2021 2022 2021
₦ million ₦ million ₦ million ₦ million
Financial assets at amortised cost

Trade and other receivables* 102,085 78,869 102,085 78,869
Contract assets 3,313 1,679 3,313 1,679
Cash and cash equivalents 180,786 133,667 180,786 133,667
286,184 214,215 286,184 214,215
Financial liabilities at amortised cost

Interest bearing loans and borrowings 344,381 315,791 331,384 307,447
Trade and other payables** 178,128 136,619 178,128 136,619
522,509 452,410 509,512 444,066

Financial liabilities at fair value
Derivative financial instruments (Note 25) (1,435) (1,543) (1,435) (1,543)
(1,435) (1,543) (1,435) (1,543)

2022 2021 2022 2021
$’000 $’000 $’000 $’000

Trade and other receivables* 228,312 191,463 228,312 191,463
Contract assets 7,408 4,076 7,408 4,076
640,056 520,029 640,056 520,029

Trade and other payables** 398,380 331,655 398,380 331,655
1,168,583 1,098,269 1,139,517 1,078,013
Financial liabilities at fair value

Derivative financial instruments (Note 25) (3,210) (3,745) (3,210) (3,745)
(3,210) (3,745) (3,210) (3,745)
*Trade and other receivables exclude Geregu Power, Sapele Power and NGMC VAT receivables, cash advances and advance payments.
In determining the fair value of the interest-bearing loans and borrowings, non-performance risks of the Group as at year-
end were assessed to be insignificant.
**Trade and other payables (excluding non-financial liabilities such as provisions, taxes, pension and other non-contractual
payables), trade and other receivables (excluding prepayments), contract assets and cash and bank balances are financial
instruments whose carrying amounts as per the financial statements approximate their fair values. This is mainly due to
their short-term nature.
5.1.6 Fair Value Hierarchy

As at the reporting period, the Group had classified its financial instruments into the three levels prescribed under the
accounting standards. There were no transfers of financial instruments between fair value hierarchy levels during the year.
▪ Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
▪ Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.
▪ Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
The fair value of the financial instruments is included at the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date.
Recurring fair value measurements

Financial liability
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

31 Dec 2022 ₦ million ₦ million ₦ million $’000 $’000 $’000

Financial liabilities:
Derivative financial instruments - 1,435 - - 3,210 -

Derivative financial instruments - 1,543 - - 3,735 -
The fair value of the Group’s derivative financial instruments has been determined using a proprietary pricing model that
uses marked to market valuation. The valuation represents the mid-market value and the actual close-out costs of trades
involved. The market inputs to the model are derived from observable sources. Other inputs are unobservable but are
estimated based on the market inputs or by using other pricing models. The derivative financial instruments are in level 2.

Interest bearing loans and
- 331,384 - - 741,137 -
borrowings

Interest bearing loans and
- 307,447 - - 746,358 -
borrowings
The fair value of the Group’s interest-bearing loans and borrowings is determined by using discounted cash flow models
that use market interest rates as at the end of the period. The interest-bearing loans and borrowings are in level 2.
The valuation process

The finance & planning team of the Group performs the valuations of financial and non-financial assets required for financial
reporting purposes, including level 3 fair values. This team reports directly to the General Manager (GM) Commercial who
reports to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results
are held between the GM and the valuation team at least once every quarter, in line with the Group’s quarterly reporting
periods.
5.1.7 Capital management
Risk management
The Group’s objective when managing capital is to safeguard the Group’s ability to continue as a going concern in order
to provide returns for shareholders and benefits for other stakeholders, to maintain optimal capital structure and reduce
cost of capital. Consistent with others in the industry, the Group monitors capital on the basis of the following gearing ratio,
net debt divided by total capital. Net debt is calculated as total borrowings less cash and bank balances.
2022 2021 2022 2021


Lease liabilities 1,800 1,471 4,025 3,571
Less: cash and cash equivalents (180,786) (133,667) (404,336) (324,490)
Net debt 165,395 183,595 369,892 445,695
Total equity 786,894 703,364 1,759,883 1,707,486
Total capital 952,289 886,959 2,129,775 2,153,181
Net debt (net debt/total capital) ratio 17% 21% 17% 21%
During the year, the Group's strategy which was unchanged from 2021, was to maintain a net debt gearing ratio of 20% to
40%. Capital includes share capital, share premiums, capital contribution and all other equity reserves.
As the Group continuously reviews its funding and maturity profile, it continues to monitor the market in ensuring that its
well positioned for any refinancing and or buy back opportunities for the current debt facilities.
Loan covenants
Under the terms of the major borrowing facilities, the Group is required to comply with the following financial covenants:
▪ Total net financial indebtedness to annualised EBITDA is not to be greater than 3:1;
▪ The sources of funds exceed the relevant expenditures in each semi-annual period within the 18 months shown in the
Group’s liquidity plan.
▪ The minimum production levels stipulated for each 6-month period must be achieved.
▪ The Cash Adjusted Debt Service Cover Ratio should equal to or greater than 1.20 to 1 for each Calculation Period
through to the applicable Termination Date.
The Group has complied with these covenants throughout the reporting periods.
6. Segment reporting
Business segments are based on the Group’s internal organisation and management reporting structure. The Group’s
business segments are the two core businesses: Oil and Gas. The Oil segment deals with the exploration, development
and production of crude oil while the Gas segment deals with the production and processing of gas. These two reportable
segments make up the total operations of the Group.
For the year ended 31 December 2022, revenue from the gas segment of the business constituted 12% (2021: 16%) of
the Group’s revenue. Management is committed to continued growth of the gas segment of the business, including through
increased investment to establish additional offices, create a separate gas business operational management team and
procure the required infrastructure for this segment of the business. The gas business is positioned separately within the
Group and reports directly to the (chief operating decision maker). As the gas business segment’s revenues, results and
cash flows are largely independent of other business units within the Group, it is regarded as a separate segment.
The result is two reporting segments, Oil and Gas. There were no intersegment sales during the reporting periods under
consideration, therefore all revenue was from external customers.
Amounts relating to the gas segment are determined using the gas cost centres, with the exception of depreciation.
Depreciation relating to the gas segment is determined by applying a percentage which reflects the proportion of the Net
Book Value of oil and gas properties that relates to gas investment costs (i.e., cost for the gas processing facilities).
The Group accounting policies are also applied in the segment reports.
6.1 Segment profit disclosure

2022 2021 2022 2021
₦’million ₦’million $’000 $’000
Oil 31,204 26,251 73,524 65,539
Gas 13,229 20,680 31,182 51,637
Total profit for the year 44,433 46,931 104,706 117,176
2022 2021 2022 2021

Oil ₦’million ₦’million $’000 $’000
Revenue from contract with customers
Crude oil sales (Note 7) 356,192 247,651 839,344 618,377
Operating profit before depreciation, amortisation
and impairment 145,014 146,036 341,719 364,637
Depreciation, amortization and impairment (54,610) (68,388) (128,684) (170,762)
Finance income (Note 13) 491 126 1,157 314
Finance costs (Note 13) (28,916) (30,516) (68,141) (76,197)
Income tax expense (Note 14) (30,775) (21,007) (72,527) (52,453)
2022 2021 2022 2021

Gas ₦’million ₦’million $’000 $’000
Revenue from contract with customers
Gas sales (Note 7) 47,721 45,980 112,451 114,811
Operating profit before depreciation, amortisation
and impairment 27,269 23,776 64,258 59,368
Depreciation, amortisation and impairment (1,084) (1,023) (2,553) (2,555)
Share of profit from joint venture accounted for
using equity accounting (1,434) 1,017 (3,380) 2,540
Profit/(loss) before taxation 24,751 23,770 58,325 59,353
Income tax (expense)/credit (Note 14) (11,522) (3,090) (27,143) (7,716)
During the reporting period, impairment losses recognised in the oil segment relate to trade receivables (Pillar, Pan Ocean,
Oghareki and Summit) NEPL, NNPC and other receivables. Impairment losses recognised in the gas segment relates to
Geregu Power, Sapele Power and NGMC. See Note 11 for further details.
6.1.1 Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of commodities at a point in time or over time and from different geographical
regions.
2022 2022 2022 2022 2022 2022

Oil Gas Total Oil Gas Total
₦’million ₦’million ₦’million $’000 $’000 $’000
Geographical markets
The Bahamas 69,128 - 69,128 162,897 - 162,897
Nigeria 45,067 47,721 92,788 106,197 112,451 218,648
Italy 791 - 791 1,863 - 1,863
Switzerland 229,119 - 229,119 539,903 - 539,903
Barbados 12,087 - 12,087 28,484 - 28,484

Revenue from contract 356,192 47,721 403,913 839,344 112,451 951,795
with customers
Timing of revenue recognition

At a point in time 356,192 - 356,192 839,344 - 839,344
Over time - 47,721 47,721 - 112,451 112,451
with customers
2021 2021 2021 2021 2021 2021
₦’million ₦’million ₦’million $’000 $’000 $’000
Geographical markets
The Bahamas 68,425 - 68,425 170,855 - 134,307
Nigeria 5,499 45,980 51,479 13,730 114,811 128,541
Italy 7,798 - 7,798 19,471 - 19,471
Switzerland 157,128 - 157,128 392,345 - 392,345
Barbados 8,801 - 8,801 21,976 - 21,976
with customers
Timing of revenue recognition

At a point in time 247,651 - 247,651 618,377 - 618,377
Over time - 45,980 45,980 - 114,811 114,811
with customers
The Group’s transactions with its major customer, Mercuria, constitutes more than 60% ($539.9 million, ₦229.1 billion) of
the total revenue from the oil segment and the Group as a whole. Also, the Group’s transactions with Geregu Power,
Sapele Power, NGMC and Azura ($112 million, ₦47.7 billion) accounted for the total revenue from the gas segment.
6.1.2 Impairment (losses)/reversal on financial assets by reportable segments

2022 2022 2022 2021 2021 2021
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Impairment (losses)/reversal
(2,727) (3) (2,730) 5,960 3,075 9,035
recognised during the year
(2,727) (3) (2,730) 5,960 3,075 9,035
2022 2022 2022 2021 2021 2021

$’000 $’000 $’000 $’000 $’000 $’000

Impairment (losses)/reversal
(6,425) (7) (6,432) 14,883 7,678 22,561
recognised during the year
(6,425) (7) (6,432) 14,883 7,678 22,561
6.1.3 Impairment losses on non-financial assets by reportable segments

2022 2022 2022 2021 2021 2021
₦’million ₦’million ₦’million ₦’million ₦’million ₦’million
Impairment losses recognised during
- - - (23,684) - (23,684)
the year
- - - (23,684) - (23,684)
2022 2022 2022 2021 2021 2021
$’000 $’000 $’000 $’000 $’000 $’000
Impairment losses recognised during
- - - (59,138) - (59,138)
the year
- - - (59,138) - (59,138)
6.2 Segment assets

Segment assets are measured in a manner consistent with that of the financial statements. These assets are allocated
based on the operations of the reporting segment and the physical location of the asset. The Group had no non-current
assets domiciled outside Nigeria.

Total segment assets ₦’million ₦’million ₦’million $’000 $’000 $’000
31 December 2022 1,279,802 301,810 1,581,612 2,862,263 674,994 3,537,257
31 December 2021 1,393,987 209,549 1,603,536 3,384,033 508,701 3,892,734
6.3 Segment liabilities

Segment liabilities are measured in a manner consistent with that of the financial statements. These liabilities are allocated
based on the operations of the segment.

Total segment liabilities ₦’million ₦’million ₦’million $’000 $’000 $’000
31 December 2022 654,939 139,779 794,718 1,464,761 312,613 1,777,374
31 December 2021 690,623 209,549 900,172 1,676,547 508,701 2,185,248
7. Revenue from contracts with customers

2022 2021 2022 2021
Crude oil sales 356,192 247,651 839,344 618,377
Gas sales 47,721 45,980 112,451 114,811
403,913 293,631 951,795 733,188
The major off-takers for crude oil are Mercuria and Shell West. The major off-takers for gas are Geregu Power, Sapele
Power, Nigerian Gas Marketing Company and Azura.

8. Cost of sales
2022 2021 2022 2021
Royalties 76,712 51,997 180,765 129,836
Depletion, depreciation and amortisation (Note 16.4) 54,610 56,503 128,684 141,086
Crude handling fees 20,984 21,009 49,447 52,457
Nigeria Export Supervision Scheme (NESS) fee 419 250 987 624
Barging and Trucking 5,203 4,702 12,262 11,741
Niger Delta Development Commission Levy 4,561 1,741 10,748 4,346
Operational & maintenance expenses 44,207 43,212 104,166 107,909
206,696 179,414 487,059 447,999
Operational & maintenance expenses relates mainly to maintenance costs, warehouse operations expenses, security
expenses, community expenses, clean-up costs, fuel supplies and catering services. Also included in operational and
maintenance expenses is gas flare penalty of $5.2 million, ₦ 2.2 billion (2021: $14.1 million ₦5.6 billion) and inventory write
down of $8.5 million, ₦3.6 billion on Solewant line pipes (2021: nil).
Barging and Trucking costs relates to costs on the OML 40 Gbetiokun field and OML 17 Ubima field respectively under
Eland Group.
9. Other (loss)/income
2022 2021 2022 2021
₦ million ₦’million $’000 $’000
(Overlift)/Underlift (11,547) 5,587 (27,209) 13,950
Loss on foreign exchange (454) (1,755) (1,068) (4,381)
Loss on disposal of oil and gas asset – Note 16.3.2 (5,548) - (13,073) -
Loss on disposal of property, plant and equipment –
(Note 16.3.1) (8) - (18) -
Provision no longer required - 2,147 - 5,362
Tariffs 1,638 2,077 3,861 5,187
Others 617 - 1,453 -
(15,302) 8,056 (36,054) 20,118
Overlifts/Underlifts are surplus/shortfalls of crude lifted above/below the share of production. It may exist when the crude
oil lifted by the Group during the period is more/less than its ownership share of production. The surplus/shortfall is initially
measured at the market price of oil at the date of lifting and recognised as other loss/income. At each reporting period, the
surplus/shortfall is remeasured at the current market value. The resulting change, as a result of the remeasurement, is
also recognised in profit or loss as other loss/income.
Loss on foreign exchange are principally due to the translation of Naira, Pounds and Euro denominated monetary assets
and liabilities.
Loss on disposal of oil and gas asset relates to the loss on the sale of Ubima field.
Provision no longer required in the prior year relates to the reversal of decommissioning obligation no longer required for
Eland operations.
Tariffs which is a form of crude handling fee, relate to income generated from the use of the Group’s pipeline.
Others represents other income, joint venture billing interest and joint venture billing finance fees.
10. General and administrative expenses

2022 2021 2022 2021
Depreciation (Note 16.2) 1,735 2,003 4,092 5,000
Depreciation of right-of-use assets (Note 18) 2,297 1,870 5,413 4,670
Auditor’s remuneration 424 392 999 980
Professional and consulting fees 14,305 4,915 33,708 12,274
Directors’ emoluments (executive) 875 897 2,062 2,240
Directors’ emoluments (non-executive) 2,677 1,844 6,308 4,604
Loss on disposal of other property, plant and equipment – - 89 - 222
(Note 16.3.1)
Donations 13 173 30 433
Employee benefits (Note 10.1) 23,192 17,268 54,654 43,116
Flights and other travel costs 4,256 1,992 10,031 4,977
Rentals and other general expenses 8,525 631 20,088 1,574
58,299 32,074 137,385 80,090
Directors’ emoluments have been split between executive and non-executive directors.
Flights and other travel costs increases were driven by higher travel and training costs following the relaxation of travel
restrictions.
Rentals and other general expenses consist of training fees, software license and maintenance fees.
10.1 Employee benefits - Salaries and employee related costs include the following:
2022 2021 2022 2021
Short term employee benefits:

Basic salary 12,317 10,262 29,025 25,623
Housing allowances 1,441 1,763 3,394 4,403
Other allowances 3,931 2,652 9,265 6,621
Post-employment benefits:
Defined contribution expenses 1,329 943 3,132 2,354
Defined benefit expenses (Note 33.2) 700 439 1,650 1,095
Other employee benefits:

Share based payment expenses (Note 27.4) 3,474 1,209 8,188 3,020
23,192 17,268 54,654 43,116
Other allowances relate to staff bonus, car allowances and relocation expenses.
10.2 Below are details of non-audit services provided by the auditors:

Entity Service PwC office Fees ($) Year
Seplat Energy Plc Renumeration committee advice PwC UK 414,000 2022
Seplat Energy Plc Project Apollo (Reporting accountant) PwC Nigeria 394,555 2022
10.3 Below are details of assurance service providers to the Group during the year:

S/N Name of Signer Name of firm Service rendered
Tosin Famurewa* Ryder Scott Petroleum Reserve valuation

1 Consultants
Stephen.T. Philips*
Chidiebere Orji Logic Professional Service Actuarial valuation service

2
(FRC/2021/004/00000022718) (FRC/2020/00000013617)
Reuben Temerigha* Westend Diamond Nigeria Drilling rigs valuation
3
(FRC/2023/PRO/DIR/003/866111) Limited
*The signers and firms do not have FRCN numbers.
11. Impairment loss

2022 2021 2022 2021
Impairment losses on financial assets-net (Note 11.1) 2,730 9,035 6,432 22,561
Impairment loss on non-financial assets (Note 11.2) - 6,216 - 15,521
Reversal of impairment on non-financial asset
- (29,900) - (74,659)
(Note 11.2)
2,730 (14,649) 6,432 (36,577)
11.1 Impairment losses/(reversal) on financial assets-net

2022 2021 2022 2021
Impairment losses/(reversal) on:
NNPC receivables (325) 108 (766) 270
NEPL receivables (3,700) 1,848 (8,720) 4,614
Trade receivables
1,383 7,006 3,259 17,493
(Geregu Power, Sapele Power and NGMC)
Receivables from joint venture (ANOH) 126 - 296 -
Contract asset 170 - 402 1
Other trade receivables 5,076 73 11,961 183
2,730 9,035 6,432 22,561
Exchange difference - - - -
Total impairment loss allowance 2,730 9,035 6,432 22,561
11.2 Impairment loss/(reversal) on non-financial assets:
2022 2021 2022 2021

Impairment loss on non-financial assets
- 6,027 - 15,049
(Plant & Machinery)
Impairment loss on non-financial assets (OML 17) - 189 - 472

Reversal of impairment on non-financial asset (OML
- (29,900) - (74,659)
40)
- (23,684) - (59,138)
During the period, the Group recognized no impairment loss on non-financial assets (2021: ₦ 6.03 million, ($15.05 million).
12. Fair value gain/(loss)
2022 2021 2022 2021

Realised fair value losses on crude oil hedges (4,360) (3,608) (10,275) (9,010)
Unrealised fair value gain/(loss) 63 (839) 150 (2,096)
(4,297) (4,447) (10,125) (11,106)
Fair value loss on derivatives represents changes in the fair value of hedging receivables charged to profit or loss.
13. Finance income/(cost)
2022 2021 2022 2021

Finance income
Interest income 491 126 1,157 314
Finance cost
Interest on bank loans (Note 30) (27,761) (29,765) (65,418) (74,322)
Interest on lease liabilities (Note 31) (161) (212) (380) (530)
Unwinding of discount on provision for decommissioning
(994) (539) (2,343) (1,345)
(Note 32)
(28,916) (30,516) (68,141) (76,197)
Finance (cost) – net (28,425) (30,390) (66,984) (75,883)
Finance income represents interest on short-term fixed deposits.
The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest
rate applicable to the Group’s general borrowings denominated in dollars during the year, in this case 7.52% (2021: 7.72%).
The amount capitalised during the year is ₦5.9 billion ($14 million), (2021: ₦5 billion, $12.5 million).
14. Taxation
The major components of income tax expense for the years ended 31 December 2022 and 2021 are:
Income tax expense

2022 2021 2022 2021

Current tax:
Current tax expense on profit for the year 24,481 12,317 57,689 30,755
Education tax 4,022 2,603 9,478 6,500
NASENI Levy 221 139 518 346
Police Levy 3 2 8 5
Total current tax 28,727 15,061 67,693 37,606
Deferred tax:
Deferred tax expense in profit or loss (Note 14.3) 13,570 9,036 31,977 22,563
Total tax expense in statement of profit or loss 42,297 24,097 99,670 60,169
Deferred tax recognised in other comprehensive income
(Note 14.3) 379 133 892 333
Total tax charge for the period 42,676 24,230 100,562 60,502
Effective tax rate 49% 34% 49% 34%
14.1 Reconciliation of effective tax rate

The Income tax expense is recognised based on management’s estimate of the weighted average effective annual income
tax rate expected for the full financial year. The estimated annual tax rate used for the year ended 31 December 2022 is
85% for crude oil activities and 30% for gas activities. As at 31 December 2022, the applicable tax rate was 85% and 30%
respectively.
The effective tax rate for the period was 49% (2021: 34%).
A reconciliation between income tax expense and accounting profit before income tax multiplied by the applicable statutory
tax rate is as follows:
2022 2021 2022 2021

Tax rate of 85% and 30% 73,721 60,374 173,720 150,743
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Income not subject to tax (25,349) (14,649) (59,733) (36,579)
Expenses not deductible for tax purposes (76,309) 100,349 (179,817) 250,570
Impact of unutilised tax losses 65,989 (124,721) 155,496 (311,416)
Education tax 4,022 2,603 9,478 6,500
NASENI levy 220 139 518 346
Police levy 3 2 8 5
Total tax charge in statement of profit or loss 42,297 24,097 99,670 60,169
14.2 Current tax liabilities

The movement in the current tax liabilities is as follows:
2022 2021 2022 2021

As at 1 January 19,094 8,261 46,351 21,739
Tax charge 28,727 15,061 67,693 37,606

Tax paid (24,415) (5,203) (57,532) (12,994)
Exchange difference 1,862 975 - -
As at 31 December 25,268 19,094 56,512 46,351
14.3 Deferred tax

The analysis of deferred tax assets and deferred tax liabilities is as follows:
(Charged)/ Charged to
Balance as credited to other
at 31 Dec profit or comprehensive Exchange Balance as at
2021 loss income difference 31 Dec 2022
Deferred tax assets (Note 14.4) 128,539 62,624 (379) 14,323 205,107
Deferred tax liabilities (Note 14.5) (42,732) (76,194) - (7,738) (126,664)
85,807 (13,570) (379) 6,585 78,443
Charged to
other Balance as
Balance as at 31 (Charged)/credited comprehensive at 31 Dec
Dec 2021 to profit or loss income 2022
$’000 $’000 $’000 $’000
Deferred tax assets (Note 14.4) 312,041 147,569 (892) 458,718
Deferred tax liabilities (Note 14.5) (103,736) (179,546) - (283,282)
208,305 (31,977) (892) 175,436
In line with IAS 12, the Group elected to offset the deferred tax assets against the deferred tax liabilities arising from similar
transactions.
14.4 Deferred tax assets

Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related
tax benefit through future taxable profits is probable.
Charged to Balance
Balance at (Charged)/ other Exchange at 31
1 January credited to comprehensive difference December
2022 profit or loss income 2022
₦ million ₦ million ₦ million N million ₦ million
Tax losses 12,686 (3,634) - 889 9,941
Other cumulative timing differences:
Accelerated capital deduction 50,421 39,281 - 6,416 96,118
Other temporary differences:
Provision for abandonment 8,216 3,525 - 891 12,632
Provision for gratuity 7,629 2,730 - 799 11,158
Provision for defined benefit 3,554 (703) (379) 245 2,717
Unrealised foreign exchange loss 7,056 3,759 - 804 11,619
Overlift 8,432 13,493 - 1,445 23,370
Impairment provision on trade and other
30,547 4,017 - 2,825 37,389
receivables
Leases - 155 - 8 163

128,539 62,244 (379) 14,322 205,107
Charged
(Charged)/ to other Balance at
Balance at credited to profit comprehensive 31 December
1 January 2022 or loss income 2022
$’000 $’000 $’000 $’000
Tax losses 30,797 (8,563) - 22,234
Accelerated capital deduction 122,401 92,564 - 214,965
Other temporary differences:
Provision for abandonment 19,944 8,307 - 28,251
Provision for gratuity 18,519 6,434 - 24,953
Provision for defined benefit 8,627 (1,657) (892) 6,078
Unrealised foreign exchange loss 17,128 8,857 - 25,985
Overlift 20,470 31,796 - 52,266
Impairment provision on trade and other
receivables 74,155 9,466 - 83,621
Leases - 365 - 365
312,041 147,569 (892) 458,718
*Other temporary differences include provision for defined benefit, provision for Abandonment, share equity reserve.
During the year, the Group elected to offset the deferred tax assets against the deferred tax liabilities arising from similar
transactions in line with IAS 12. This led to a deferred tax reclassification of $729 million, ₦300 billion from the deferred
tax liabilities to the deferred tax assets as at 1 January 2022.
14.5 Deferred tax liabilities

Deferred tax liabilities are recognised for amounts of income taxes payable in future periods in respect of taxable temporary
differences.
Charged Balance at
Balance as at /(credited) Exchange 31 December
1 January 2022 to profit or loss difference 2022
Property, plant & equipment (35,570) (71,365) (6,866) (113,801)
Leases (1,408) 1,305 (50) (154)
Underlift (5,753) 1,548 (410) (4,615)
Unrealised foreign exchange loss - (7,682) (412) (8,094)
(42,732) (76,194) (7,738) (126,664)
Balance at Charged/(credited) Balance at

1 January 2021 to profit or loss 31 December 2021
$’000 $’000 $’000
Property, plant and equipment (86,350) (168,165) (254,515)
Leases (3,419) 3,075 (344)

Underlift (13,967) 3,647 (10,320)
Unrealised foreign exchange gain - (18,103) (18,103)
(103,736) (179,546) (283,282)
During the period, the Group elected to offset $729 million, ₦300 billion from the deferred tax liabilities to the deferred tax
assets as at 1 January 2022 in line with IAS 12. The net impact of the reclassification remains unchanged in the
consolidated statement of financial position.
14.6 Unrecognised deferred tax assets

There were no temporary differences associated with investments in the Group’s subsidiaries for which a deferred tax
asset would have been recognised in the periods presented.
14.7 Unrecognised deferred tax liabilities

There were no temporary differences associated with investments in the Group’s subsidiaries for which a deferred tax
liability would have been recognised in the periods presented.
15. Computation of cash generated from operations

2022 2021 2022 2021
Profit before tax 86,730 71,028 204,376 177,345
Adjusted for:
Depletion, depreciation and amortization 16.4 56,345 58,506 132,776 146,086
Depreciation of right-of-use asset 18 2,297 1,870 5,413 4,670
Impairment losses on financial assets 11.1 2,730 9,035 6,432 22,561
Impairment losses on non-financial assets 11.2 - 6,216 - 15,521
Reversal of impairment loss on non-financial assets 11.2 - (29,900) - (74,659)
Loss on disposal of oil and gas asset 16.3 5,548 - 13,073 -
Loss on disposal of other property,
8 89 18 222
plant & equipment 16.3
Interest income 13 (491) (126) (1,157) (314)
Interest expense on bank loans 30 27,761 29,765 65,418 74,322
Interest on lease liabilities 31 161 212 380 530
Unwinding of discount on provision for 32
994 539 2,343 1,345
decommissioning
Unrealised fair value (gain)/loss on derivatives
(63) 839 (150) 2,096
financial instrument 12
Realised fair value loss on derivatives 12 4,360 3,608 10,275 9,010
Unrealised foreign exchange (gain)/loss 9 454 1,755 1,068 4,381
Share based payment expenses 27.4 3,474 1,209 8,188 3,020
Defined benefit expenses 700 439 1,650 1,095
Share of loss/(profit) in joint venture 21.3 1,434 (1,017) 3,380 (2,540)
Changes in working capital: (excluding the effects of exchange differences)

Trade and other receivables (293) (8,302) (691) (20,729)
Inventories 8,297 (155) 19,551 (387)
Prepayments 4,153 (1,252) 9,786 (3,126)
Contract assets (1,585) 837 (3,734) 2,090

Trade and other payables 39,386 9,499 91,187 23,718
Contract liabilities - (3,793) - (9,470)
Net cash from operating activities 242,400 150,901 571,206 376,787
16. Property, plant and equipment
16.1 Oil and gas properties

Production Exploration and
and Assets under Evaluation
field facilities construction assets Total
Cost ₦ million ₦ million ₦ million ₦ million
At 1 January 2022 855,944 121,337 24,901 1,002,182
Additions 28,386 38,952 - 67,338

Transfer 11,127 (11,127) - -
Changes in decommissioning obligation (Note 32) 15,631 - - 15,631
Interest capitalized (Note 30.1) - 5,943 - 5,943
Reclassification 29,993 9,232 - 39,225
Disposals (23,457) - - (23,457)
Exchange differences 76,451 12,675 2,128 91,254
At 31 December 2022 994,075 177,013 27,029 1,198,117
Depreciation
At 1 January 2022 341,437 - - 341,437
Charge for the year 50,421 - - 50,421
Impairment loss - - - -
Reclassification 34,136 - - 34,136
Disposals (2,778) - - (2,778)
Exchange differences 33,562 - - 33,562
At 31 December 2022 456,778 - - 456,778
NBV
At 31 December 2022 537,297 177,013 27,029 741,339
Cost
2
At 1 January 2021 741,974 107,129 22,367 871,470
Additions 25,028 28,955 635 54,618

Transfer 28,888 (28,888) - -
Changes in decommissioning obligation (Note 32) (3,727) - - (3,727)
Exchange differences 63,781 9,146 1,899 74,826
At 31 December 2021 855,944 121,337 24,901 1,002,182
Depreciation
At 1 January 2021 261,995 - - 261,995
Exchange difference 23,610 - - 23,610

At 31 December 2021 341,437 - - 341,437
NBV
At 31 December 2021 514,507 121,337 24,901 660,745
Production and Assets under Exploration and

field facilities construction Evaluation assets Total
Cost $’000 $’000 $’000 $’000

At 1 January 2022 2,077,889 294,558 60,450 2,432,897
Additions 66,890 91,788 - 158,678
Transfer 26,220 (26,220) - -
Changes in decommissioning obligation

36,834 - - 36,834
(Note 32)
Reclassification 70,677 21,755 - 92,432
Disposals (55,274) - - (55,274)
At 31 December 2022 2,223,236 395,886 60,450 2,679,572
Depreciation
At 1 January 2022 828,872 - - 828,872
Impairment loss - - - -
Reclassification 80,440 - - 80,440
Disposals (6,546) - - (6,546)
At 31 December 2022 1,021,579 - - 1,021,579
NBV
At 31 December 2022 1,201,657 395,886 60,450 1,657,993
Cost
At 1 January 2021 1,952,564 281,919 58,865 2,293,348
Additions 62,497 72,299 1,585 136,381
Transfer 72,133 (72,133) - -
Changes in decommissioning obligation (9,305) - - (9,305)

(Note 32)
At 31 December 2021 2,077,889 294,558 60,450 2,432,897
Depreciation
At 1 January 2021 689,460 - - 689,460
At 31 December 2021 828,872 - - 828,872

NBV
At 31 December 2021 1,249,017 294,558 60,450 1,604,025
Assets under construction represent costs capitalised in connection with the development of the Group’s oil fields and
other property, plant and equipment not yet ready for their intended use. Some of which are qualifying assets that take a
substantial period to get ready for its intended use. A capitalisation rate of 7.52% (2021: 7.72%) has been determined and
applied to the Group’s general borrowing to determine the borrowing cost capitalised as part of the qualifying assets.
Borrowing costs capitalised during the year amounted to ₦5.9 billion, 2021: ₦14.01 billion (2022: $14.3 million, 2021: $12.5
million). There was no oil and gas property pledged as security during the reporting period.
Impairment testing
There was no impairment loss recorded for OML 4, 38, 41, OML 53 and OML 56 during the year ended. (2021: nil).
16.2 Other property, plant and equipment
Office
Plant & Motor furniture & IT Leasehold
machinery vehicles equipment improvements Land Building Total
Cost ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million
At 1 January 2022 15,531 3,831 9,038 2,355 28 1,603 32,386
Additions 413 634 723 203 - - 1,973
Disposals - (477) (6) - - - (483)
Exchange differences 1,350 336 812 213 2 137 2,850
At 31 December 2022 17,294 4,324 10,567 2,771 30 1,740 36,726
Depreciation
At 1 January 2022 8,293 2,616 8,180 1,912 - 157 21,158
Charge for the year 57 794 617 201 - 66 1,735
Disposals - (462) (4) - - - (466)
Exchange differences 712 242 732 175 - 19 1,880
At 31 December 2022 9,062 3,189 9,524 2,288 - 242 24,307
NBV
At 31 December 2022 8,232 1,135 1,043 483 30 1,498 12,419
Cost
At 1 January 2021 1,950 5,150 8,413 2,142 25 1,478 18,888
Additions 13,045 135 204 32 - - 13,416
Disposals - (1,838) - - - - (1,838)
Exchange differences 536 384 691 181 3 125 1,920
At 31 December 2021 15,531 3,831 9,038 2,355 28 1,603 32,386
Depreciation
At 1 January 2021 1,861 3,414 6,605 1,592 - 86 13,558
Charge for the year 74 694 991 181 - 63 2,003
Impairment loss 6,199 - - - - - 6,199
Disposals - (1,749) - - - - (1,749)

Exchange differences 159 257 584 139 - 8 1,147
At 31 December 2021 8,293 2,616 8,180 1,912 - 157 21,158
NBV
At 31 December 2021 7,238 1,215 858 443 28 1,446 11,228
Plant & Motor Office furniture Leasehold

machinery vehicles & IT equipment improvements Land Building Total
Cost $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2022 37,704 9,299 21,941 5,717 68 3,891 78,620
Additions 974 1,493 1,704 478 - - 4,649
Disposals - (1,123) (13) - - - (1,136)
At 31 December 2022 38,678 9,669 23,632 6,196 68 3,891 82,133
Depreciation
At 1 January 2022 20,132 6,351 19,858 4,642 - 382 51,365
Charge for the year 136 1,871 1,453 473 - 159 4,092
Disposal - (1,089) (10) - - - (1,099)
At 31 December 2022 20,268 7,133 21,301 5,116 - 541 54,358
NBV
At 31 December 2022 18,410 2,536 2,331 1,080 68 3,350 27,775
Plant & Motor Office furniture Leasehold

machinery vehicles & IT equipment improvements Land Building Total
Cost $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2021 5,131 13,552 21,431 5,638 68 3,891 49,711
Additions 32,573 336 510 79 - - 33,498
Disposals - (4,589) - - - - (4,589)
At 31 December 2021 37,704 9,299 21,941 5,717 68 3,891 78,620
Depreciation
At 1 January 2021 4,899 8,986 17,384 4,190 - 224 35,683
Charge for the year 184 1,732 2,474 452 - 158 5,000
Impairment loss 15,049 - - - - - 15,049
Disposal - (4,367) - - - - (4,367)
At 31 December 2021 20,132 6,351 19,858 4,642 - 382 51,365
NBV
At 31 December 2021 17,572 2,948 2,083 1,075 68 3,509 27,255
During the year, the Group performed a valuation on the drilling rigs acquired in 2021.
The recoverable amount of $47 million as at 31 December 2022 has been determined based on the fair value less cost to
dispose using the services of Westend Diamond Nigeria Limited, an independent valuer.
The fair value was determined using the current asset value of the rigs. This was based on inspection of the components,
recent sales of similar assets and price adjustment for damaged components based on industry knowledge and the
Valuer’s experience in rig acceptance services and testing rig condition surveys.

The recoverable amount ($47 million) was higher than the carrying value ($18.35 million). Hence, there was no impairment
loss recorded in profit or loss.
It is categorised under level 2 of the fair value hierarchy.
16.3 Loss on disposal
16.3.1 Loss on disposal of other property, plant and equipment

2022 2021 2022 2021
Proceeds from disposal of assets 8 - 19 -
Less net book value of disposed assets (16) (89) (37) (222)
(8) (89) (18) (222)
16.3.2 Loss on disposal of oil and gas assets

2022 2021 2022 2021
Proceeds from disposal of assets 7,884 - 18,578 -
Less net book value of disposed assets (13,432) - (31,651) -
(5,548) - (13,073) -
16.4 Depletion, depreciation and amortisation

2022 2021 2022 2021
Oil and gas properties (Note 16.1) 46,997 55,832 118,812 139,412
Amortisation of intangible asset (Note 19) 7,613 671 9,872 1,674
Charged to cost of sales 54,610 56,503 128,684 141,086
Other property, plant and equipment charged to
general and administrative expense (Note 16.2) 1,735 2,003 4,092 5,000
Right of use assets (Note 18) 2,297 1,870 5,413 4,670
Total depletion, depreciation and amortization 58,642 60,376 138,189 150,756
17. Other assets

2022 2021 2022 2021
Fair value at the beginning of the year 46,363 44,630 112,551 117,448
Receipts from crude oil lifted (4,600) (1,961) (10,840) (4,897)
Exchange differences 3,715 3,694 - -
Fair value at the end of the year 45,478 46,363 101,711 112,551
Other assets represents the Group’s rights to receive the discharge sum of ₦85 billion, 2021: ₦61 billion ($190 million,
2021: $199 million) from the crude oil reserves of OML 55. The asset is measured at fair value through profit or loss
(FVTPL) and receipts from crude oil lifted reduce the value of the asset. At each reporting date, the fair value of the
discharge sum is determined using the income approach in line with IFRS 13: Fair Value Measurement (discounted cash
flow). This asset is categorised within Level 3 of the fair value hierarchy amounting to $142.4 million (2021: 112.6 million)
A further increase/(decrease) in the discount rate of 15% would result in the following:
Fair value Impact on profit or loss

Percentage $’000 $’000

+2% 137,823 (4,589)
-2% 147,327 4,916
18. Right of use asset

2022 2021 2022 2021
As at 1 January 3,050 3,965 7,404 10,435
Additions during the year 1,084 656 2,424 1,639
Less: depreciation for the period (2,297) (1,870) (5,413) (4,670)
Exchange difference 137 299 - -
As at 31 December 1,974 3,050 4,415 7,404
In 2018, the Group entered into a lease agreement for an office building in Lagos. The non-cancellable period of the lease
is 5 years commencing on 1 January 2019 and ending on 31 December 2023. However, the Group has an option of either
extending the lease period on terms to be mutually agreed by parties to the lease on the expiration of the current term or
purchase the property.
The addition during the year relates to Elcrest – Office rent, barges and leases of vessels and UK ledger balance transfers.
19. Intangible assets

License Total License Total
Cost ₦ million ₦ million $’000 $’000
At 1 January 2022 60,435 60,435 146,713 146,713
Additions 5,092 5,093 12,000 12,000
Reclassification (359) (359) (845) (845)
Exchange difference 5,420 5,420 - -
At 31 December 2022 70,588 70,588 157,868 157,868
Amortisation
At 1 January 2022 6,390 6,390 15,513 15,513
Charge for the year
Reclassification 3,424 3,424 8,068 8,068
Amortisation 4,189 4,189 9,872 9,872
At 31 December 2022 14,958 14,958 33,453 33,453
NBV
At 31 December 2022 55,630 55,630 124,415 124,415
Cost
At 1 January 2021 55,751 55,751 146,713 146,713
At 31 December 2021 60,435 60,435 146,713 146,713
Amortisation and impairment

At 1 January 2021 33,450 33,450 88,026 88,026

-Impairment 189 189 472 472
-Impairment reversal (29,900) (29,900) (74,659) (74,659)
- Amortisation 671 671 1,674 1,674
At 31 December 2021 6,390 6,390 15,513 15,513
NBV
At 31 December 2021 54,045 54,045 131,200 131,200
License relates to costs paid in connection with the renewal of a right for exploration of an oil mining lease field.
There was no impairment loss recorded for OML 40 and OML 17 during the year ended 2022 (2021: nil and $0.5 million).
As at 31 December 2022, the market capitalisation of the Group was above the book value of its intangible assets. In
addition, there has been a slight increase in oil price and development activities around the world, as well as the subtle
adjustment to current economic activities compared to the prior year which has led to an increase in the value of oil and
gas assets.
20. Prepayments
2022 2021 2022 2021
Non-current ₦ million ₦ million $’000 $’000
Advances to suppliers 25,703 27,512 57,486 66,788
25,703 27,512 57,486 66,788
Current
Rent 184 84 412 204
Other prepayments 372 627 830 1,522
556 711 1,242 1,726
26,259 28,223 58,728 68,514
20.1 Rent
Rent relates to short-term leases of residential buildings, car parks and office buildings with contractual lease term of less
than or equal to 12 months. At the end of the reporting period, rental expense of ₦0.45 billion, $1.06 million (2021: ₦631
million ($1.6 million)) was recognised within general and administrative expenses for these leases. The Group’s future
cash outflows from short-term lease commitments at the end of the reporting period are ₦184 million, $412 thousand
(2021: ₦184 million, $449 thousand).
20.2 Advances to suppliers

Advances to suppliers relate to a milestone payment made to finance the construction of the Amukpe Escravos Pipeline
Project and other related facilities. Recoveries would be made after the completion of the pipeline. At the end of the
reporting period, the total prepaid amount is ₦25.7 billion, $57.5million, (2021: ₦27.5 billion, $66.8 million).
20.3 Other prepayments

Included in other prepayments are prepaid service charge expenses for office buildings, health insurance, software license
maintenance, motor insurance premium and crude oil handling fees.
21. Interest in other entities
21.1 Material subsidiaries

The Group’s principal subsidiaries as at 31 December 2022 are set in Note 1. Unless otherwise stated, their share capital
consists solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals
the voting rights held by the Group. The country of incorporation or registration is also their principal place of business.
The Group exercised significant judgement in consolidating Elcrest. Please see Note 4.1 for details. Also, there were no
significant restrictions on any of the entities.

21.2 Non-controlling interest (NCI)
Summarised financial information in respect of Elcrest Exploration and Production Nigeria Limited which has a material
non-controlling interest is set out below.
The information disclosed reflects amounts presented in the financial statements of the subsidiary amended to reflect fair
value adjustments made by the Group, and modifications for differences in accounting policy during the business
combination.
21.2.1 Statement of financial position

As at As at As at As at
31 Dec 2022 31 Dec 2022 31 Dec 2021 31 Dec 2021
₦’million $’000 ₦’million $’000
Current assets 65,158 145,722 11,600 28,161
Current liabilities (320,653) (735,104) (289,360) (717,060)
Current net liabilities (255,495) (589,382) (277,760) (688,899)
Non-current asset 271,432 607,062 246,878 599,320

Non-current liabilities (21,324) (47,689) (7,142) (17,338)
Non-current net assets 250,108 559,373 239,736 581,982
Net liabilities (5,387) (30,009) (38,024) (106,917)

Accumulated NCI at 55% (2,963) (16,505) (20,913) (58,804)
21.2.2 Statement of profit or loss and other comprehensive income

As at 31 Dec As at 31 Dec As at 31 Dec As at 31 Dec
2022 2022 2021 2021
Revenue 69,128 162,897 53,788 134,307
Cost of sales (65,680) (154,772) (52,828) (131,911)
Operating expenses (471) (1,109) (6,450) (16,105)
Finance income/(cost) (2,289) (2,378) (12,428) (31,032)
Profit/(loss) before Tax 688 1,622 (17,918) (44,741)
Tax credit 31,949 75,286 - -
Profit/(loss) for the year 32,637 76,908 (17,918) (44,741)
Total comprehensive income/(loss) 19,216 76,908 (17,918) (44,741)
21.2.3 Statement of cash flows

31 Dec 2022 31 Dec 2022 31 Dec 2021 31 Dec 2021
Operating activities 283,728 668,587 26,267 65,589
Investing activities (31,105) (69,565) (25,834) (64,507)
Financing activities (250,780) (560,867) 4,152 10,367

21.3 Investment accounted for using equity accounting method
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021
Investment in joint venture (note 21.3.1) 99,219 92,795 221,902 225,270

99,219 92,795 221,902 225,270
21.3.1 Interest in joint ventures

The revised shareholders agreement between the Group and Nigerian Gas Processing and Transportation Company
(NGPTC) requires both parties to have equal shareholding in ANOH. With the change in the ownership structure, the Group
has reassessed its retained interest in ANOH and determined that it has joint control. The Group's interest in ANOH is
accounted for in the consolidated financial statements using the equity method because the Group interest in ANOH (Joint
venture) is assessed to be a joint venture.
Set below is the information on the material joint venture of the Group, ANOH. The Company has share capital consisting
solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also its
principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held.
The Company is a private entity hence no quoted price is available.
As at the reporting period, the Group had no capital commitment neither had it incurred any contingent liabilities jointly with
its joint venture partner.
Percentage of
ownership interest Carrying amount
Country of
incorporation As at As at As at As at As at As at
and place of 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Dec
Name of entity business 2022 2021 2022 2021 2022 2021
% % ₦’million ₦’million $’000 $’000
ANOH Gas
Processing Nigeria 50 50 99,219 92,795 221,902 225,270
Company Limited
21.3.1.1 Summarised statement of financial position of ANOH
31 Dec 2022 31 Dec 2022 31 Dec 2021 31 Dec 2021
Current assets:
Cash and bank balances 4,260 9,528 15,980 38,793
Other current assets 6,240 13,955 48,662 118,131
Total current assets 10,500 23,483 64,642 156,924
Non-current assets 263,935 590,286 221,976 538,869
Total assets 274,435 613,769 286,618 695,793
Current liabilities:
Financial liabilities (excluding trade payables) (72,046) (161,128) (37,492) (91,017)
Other current liabilities (3,951) (8,837) (72,846) (176,840)
Total liabilities (75,997) (169,965) (110,338) (267,857)
Net assets 198,438 443,804 176,280 427,936
Reconciliation to carrying amounts:

Opening net assets 176,280 427,936 160,624 422,856
(Loss)/profit for the period (2,869) (6,760) 2,035 5,080
Additional contribution 10,118 22,628 - -
Exchange difference 14,909 - 13,621 -
Closing net assets 198,438 443,804 176,280 427,936
Group’s share (%) 50% 50% 50% 50%

Group’s share of net asset 99,219 221,902 88,140 213,968
Remeasurement of retained interest - - 4,655 11,302
Carrying amount 99,219 221,902 92,795 225,270
21.3.1.2 Summarised statement of profit or loss and other comprehensive income of ANOH
31 Dec 2022 31 Dec 2022 31 Dec 2021 31 Dec 2021

General and administrative expenses (3,193) (7,525) (56) (141)
Depreciation and amortization (315) (743) (193) (483)
Other income 2 5 916 2,287
Finance income 640 1,509 911 2,275
Finance cost - - (28) (70)
(Loss)/profit before taxation (2,866) (6,754) 1,550 3,868
Taxation (2) (6) 485 1,212
(Loss)/profit for the period (2,868) (6,760) 2,035 5,080
Group’s share (%) 50% 50% 50% 50%
Group’s share of (loss)/profit for the period (1,434) (3,380) 1,017 2,540
21.3.1.3 Investment in joint venture
31 Dec 2022 31 Dec 2022 31 Dec 2021 31 Dec 2021

Opening balance 92,795 225,270 84,639 222,730
Movement during the year 5 12 - -
Exchange difference 7,853 - 7,139 -
Share of (loss)/profit from joint venture accounted (1,434) (3,380) 1,017 2,540
for using the equity method
99,219 221,902 92,795 225,270
21.3.2 Investment in associate

Elandale Nigeria Limited is an associate acquired on the business combination. Elandale was incorporated in Nigeria on
17 January 2019. Elandale is an unquoted investment and valued based on fixed asset investment. The Group indirectly
owns 40% ownership interest and voting rights in Elandale. The investment was written-off during the year because
Elandale is not trading, does not have sufficient funds to repay the investment and have no discardable future income
stream. The associate is deemed to be immaterial, as a result, financial information is not provided.
22. Inventories

2022 2021 2022 2021
Tubulars, casings and wellheads 24,774 30,878 55,406 74,957
Inventory represents the value of tubulars, casings and wellheads. The inventory is carried at the lower of cost and net
realisable value. Inventory charged to profit or loss and included in cost of sales during the year is ₦3.5 billion, $7.9 million
(2021: ₦1.7 billion, $4.1 million). There was an inventory write down of $8.5 million, ₦3.6 billion on Solewant line pipes
(2021: nil).
23. Trade and other receivables

2022 2021 2022 2021
Trade receivables (Note 23.1) 19,480 25,923 43,571 62,929
Nigerian National Petroleum Corporation
40,386 34,571 90,322 83,924
Exploration Limited (NEPL) (Note 23.2)
Nigerian National Petroleum Corporation Limited
15,411 10,154 34,467 24,650
(NNPC) receivables (Note 23.3)
Underlift 7,018 20,657 15,696 50,147
Other receivables (Note 23.4) 21,752 2,964 48,644 7,194
Advances to suppliers 7,657 5,746 17,123 13,947
Receivables from ANOH (Note 23.5) 5,056 5,259 11,308 12,766
Advances for new business (Note 23.6) 57,367 - 128,300
174,127 105,274 389,431 255,557
23.1 Trade receivables

Included in trade receivables is an amount due from Geregu Power of $19.5 million, ₦8.7 billion (2021: $17.1 million, ₦7
billion), Waltersmith $12.8 million, ₦5.7 billion (Dec 2021: nil) Sapele Power $6.1 million, ₦2.7 billion (2021: $5.9million,
₦2.4 billion) and Nigerian Gas Marketing Company $0.4 million, ₦0.2 billion (2021: $7.3 million, ₦3 billion) totalling $38.7
million, ₦17.3 billion (Dec 2021: $30.3 million, ₦12.5 billion) with respect to the sale of gas. Also included in trade
receivables is nil (Dec 2021: $7.4 million, ₦3.1 billion), nil (Dec 2021: $28.1 million, ₦11.6 billion), and $3.8 million, ₦1.7
billion (Dec 2021: nil) due from Mercuria, Shell Western, and MSN Energy respectively for sale of crude and $26 million,
₦11.4 billion, (Dec 2021: $18.4 million, ₦7.6 billion) for crude injectors.
Reconciliation of trade receivables

2022 2021 2022 2021
Balance as at 1 January 34,698 22,358 84,230 58,000
Additions during the year 368,983 234,149 825,226 584,666
Receipts for the year (357,032) (223,645) (841,325) (558,436)
Exchange difference (16,187) 1,836 - -
Gross carrying amount 30,462 34,698 68,131 84,230
Less: impairment allowance (10,982) (8,775) (24,560) (21,301)
Balance as at 31 December 19,480 25,923 43,571 62,929
Reconciliation of impairment allowance on trade receivables

2022 2021 2022 2021
Loss allowance as at 1 January 8,775 1,195 21,301 3,625
Increase in loss allowance during the period 1,383 7,079 3,259 17,676

Loss allowance as at 31 December 10,982 8,775 24,560 21,301
23.2 NEPL receivables

The outstanding cash calls due to Seplat from its JOA partner, NEPL is ₦40.4 billion (Dec 2021: ₦34.6 billion) $90.3 million
(Dec 2021: 83.9million).
Reconciliation of NEPL receivables

2022 2021 2022 2021
Exchange difference (2,539) 3,153 - -
Reconciliation of impairment allowance on NEPL receivables

2022 2021 2022 2021
Loss allowance as at 1 January 4,943 619 12,000 7,386
(Decrease)/Increase in loss allowance during the (3,700) 1,848 (8,720) 4,614
period
Exchange difference 224 2,476 - -
23.3 NNPC LTD receivables
Reconciliation of NNPC receivables

2022 2021 2022 2021
Exchange difference (357) 894 - -
Less: impairment allowance (380) (665) (849) (1,615)
Reconciliation of impairment allowance on NNPC receivables

2022 2021 2022 2021

Loss allowance as at 1 January 665 479 1,615 1,345
(Decrease)/increase in loss allowance during the (325) 108 (766) 270
period
Loss allowance as at 31 December 380 665 849 1,615
23.4 Other receivables
Reconciliation of other receivables

2022 2021 2022 2021
Reconciliation of impairment allowance on other receivables

2022 2021 2022 2021
Loss allowance as at 1 January 18,668 15,303 45,319 45,319
Increase in loss allowance during the period 5,076 - 11,961 -

Other receivables include sundry receivables, WHT receivables, staff receivables, NGC VAT receivables, and Oghareki
CHC receivables.
23.5 Receivables from Joint Venture (ANOH)

2022 2021 2022 2021
Additions during the year 610 134 1,364 326
Receipts for the year (1,072) (215) (2,526) (523)
Less: impairment allowance (132) - (296) -
Reconciliation of impairment allowance on receivables from joint venture (ANOH)

2022 2021 2022 2021
Loss allowance as at 1 January - - - -

Increase in loss allowance during the period 126 - 296 -
Exchange difference 7 - - -
Loss allowance as at 31 December 132 - 296 -
23.6 Advances for New Business

Advances for new business include deposit for investment of $128.3 million, ₦57.4 billion towards the acquisition of the
entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware.
24. Contract assets

2022 2021 2022 2021
Revenue on gas sales (Note 24.1) 3,493 1,679 7,811 4,076
Impairment loss on contract asset (180) - (403) -
3,313 1,679 7,408 4,076
A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a
customer. The Group has recognised an asset in relation to a contract with Geregu Power, Sapele Power, Azura and
NGMC for the delivery of gas supplies which the three companies has received but which has not been invoiced as at the
end of the reporting period.
The terms of payments relating to the contract is between 30- 45 days from the invoice date. However, invoices are raised
after delivery between 14-21 days when the receivable amount has been established and the right to the receivables
crystalises. The right to the unbilled receivables is recognised as a contract asset. At the point where the final billing
certificate is obtained from Geregu Power, Sapele Power, Azura and NGMC authorising the quantities, this will be
reclassified from contract assets to trade receivables.
24.1 Reconciliation of contract assets

The movement in the Group’s contract assets is as detailed below:
2022 2021 2022 2021

Addition during the year 38,216 44,849 90,054 111,987
Amount billed during the year (36,631) (45,662) (86,319) (114,017)
Price adjustments - (24) - (60)
Impairment (180) - (403) (1)
25. Derivative financial instruments

The Group uses its derivatives for economic hedging purposes and not as speculative investments. Derivatives are
measured at fair value through profit or loss. They are presented as current liability to the extent they are expected to be
settled within 12 months after the reporting period.
The fair value has been determined using a proprietary pricing model which generates results from inputs. The market
inputs to the model are derived from observable sources. Other inputs are unobservable but are estimated based on the
market inputs or by using other pricing models.
2022 2021 2022 2021


Crude oil options (1,435) 1,543 (3,210) 3,745
Additions 481 - 1,075 -
(954) 1,543 (2,135) 3,745
In 2022, the Group entered into economic crude oil hedge contracts with an average strike price of ₦22,357, $50/bbl (2021:
₦22,141, $54/bbl) for 3 million barrels (2021: 3 million barrels) at a cost of ₦1.7 billion, $3.8 million (2021: ₦1.8 billion, $4.3
million).
26. Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise of cash at bank, cash on hand and short-term
deposits with a maturity of three months or less.
2022 2021 2022 2021

Cash on hand 30 5,916 66 14,361
Short-term fixed deposits 22,906 29,040 51,229 70,498
Cash at bank 157,960 98,812 353,287 239,877
Gross cash and cash equivalent 180,896 133,768 404,582 324,736
Loss allowance (110) (101) (246) (246)
Net cash and cash equivalents 180,786 133,667 404,336 324,490
26.1 Reconciliation of impairment allowance on cash and cash equivalents

2022 2021 2022 2021
Loss allowance as at 1 January 101 93 246 246
Loss allowance as at 31 December 110 101 246 246
26.2 Restricted cash

2022 2021 2022 2021
Restricted cash 10,706 6,603 23,944 16,029
10,706 6,603 23,944 16,029
26.3 Movement in restricted cash

2022 2021 2022 2021
(Decrease)/Increase in restricted cash (3,359) 7,029 (7,915) 17,552
(3,359) 7,029 (7,915) 17,552
Included in the restricted cash balance is $8 million, ₦3.6 billion and $12.5 million, ₦5.6 billion set aside in the stamping
reserve account and debt service reserve account respectively for the revolving credit facility. The amount is to be used
for the settlement of all fees and costs payable for the purposes of stamping and registering the Security Documents at
the stamp duties office and at the Corporate Affairs Commission (CAC).
Also included in the restricted cash balance is $0.8 million, ₦0.3 billion, and $1 million, ₦0.5 billion for rent deposit, and
unclaimed dividend respectively.

A garnishee order of $1.6 million, ₦0.7 billion is included in the restricted cash balance as at the end of the reporting period.
These amounts are subject to legal restrictions and are therefore not available for general use by the Group.
27. Share capital
27.1 Authorised and issued share capital

2022 2021 2022 2021
Authorised ordinary share capital

588,444,561 issued shares denominated in
500 500 3,335 3,335
Naira of 50 kobo per share
Issued and fully paid

588,444,561 (2021: 584,035,845) issued shares
297 296 1,864 1,862
denominated in Naira of 50 kobo per share
Fully paid ordinary shares carry one vote per share and the right to dividends. There were no restrictions on the Group’s
share capital.
27.2 Movement in share capital and other reserves

Issued Share based
Number of share Share payment Treasury
shares capital premium reserve shares Total
Shares ₦’million ₦’million ₦’million ₦’million ₦’million
Opening balance as at 1 January 2022 584,035,845 296 90,383 4,914 (2,025) 93,568
Share based payments - - - 3,474 - 3,474
Vested shares 4,719,809 2 2,450 (2,452) - -
PAYE tax withheld on vested shares (311,093) (1) (1,516) - - (1,517)
Closing balance as at 31 December 588,444,561 297 91,317 5,936 (2,025) 95,525
2022
Issued Share based

Shares $’000 $’000 $’000 $’000 $’000
Opening balance as at 1 January 2022 584,035,845 1,862 520,138 22,190 (4,915) 539,275
Share based payments - - - 8,188 - 8,188
Vested shares 4,719,809 5 5,480 (5,485) - -
Closing balance as at 31 December 2022 588,444,561 1,864 522,227 24,893 (4,915) 544,069
27.3 Share Premium

2022 2021 2022 2021
Share premium 91,317 90,383 522,227 520,138

Section 120.2 of Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004 requires that where
a Company issue shares at premium (i.e., above the par value), the value of the premium should be transferred to share
premium.
During the year, an additional 4,719,809 shares vested with a fair value of $5.49 million. The excess of $5.48 million above
the nominal value of ordinary shares have been recognised in share premium.
27.4 Employee share-based payment scheme

As at 31 December 2022, the Group had awarded 94,038,312 shares (2021: 73,966,540 shares) to certain employees and
senior executives in line with its share-based incentive scheme. Included in the share-based incentive schemes is two
additional schemes (2021 LTIP Scheme and 2022 LTIP Scheme) awarded during the reporting period. During the reporting
period, 7,821,418 shares had vested out of which 3,101,609 shares were forfeited in relation to participants whose
employment was terminated during the vesting period. The average forfeiture rate due to failure to meet non-market vesting
condition is 16.19% while the average due to staff exit is 24.36%. The impact of applying the forfeiture rate of 25% on
existing LTIP awards which are yet to vest will result in a reduction of share-based compensation expense for the year by
$3,531,176. The number of shares that eventually vested during the year after the forfeiture and conditions above is
4,719,809 (Dec 2021: 5,736,761 shares were vested).
i. Description of the awards valued

The Group has made a number of share-based awards under incentive plans since its IPO in 2014: IPO-related grants to
Executive and Non-Executive Directors, 2018/2020 deferred bonus awards and 2020 Long-term Incentive plan (‘LTIP’)
awards. Shares under these incentive plans were awarded at the IPO in April 2014, 2015, 2016, 2017,2018 and 2020
conditional on the Nigerian Stock Exchange (‘NSE’) approving the share delivery mechanism proposed by the Group. A
number of these awards have fully vested.
Seplat Deferred Bonus Award

25% of each Executive Director’s 2019 bonus (paid in 2020) has been deferred into shares and would be released in 2022
subject to continued employment over the vesting period. 2020 deferred bonus was approved by the Board and vested in
2022. No performance criteria are attached to this award. As a result, the fair value of these awards is calculated using
a Black Scholes model.
Long Term Incentive Plan (LTIP) awards

Under the LTIP Plan, shares are granted to management staff of the organisation at the end of every year. The shares
were granted to the employees at no cost. The shares vest (after 3 years) based on the following conditions.
▪ 25% vesting for median relative TSR performance rising to 100% for upper quartile performance on a straight-line basis.
▪ Relative TSR vesting reduced by 75% if 60% and below of operational and technical bonus metrics are achieved, with
35% reduction if 70% of operational and technical bonus metrics are achieved and no reduction for 80% or above
achievement.
▪ the Group outperforms the median TSR performance level with the LTIP exploration and production comparator group.
The LTIP awards have been approved by the NSE.
ii. Share based payment expenses

The expense recognised for employee services received during the year is shown in the following table:
2022 2021 2022 2021

Expense arising from equity-settled share-based payment transactions 3,474 1,209 8,188 3,020
There were no cancellations to the awards in 2022. The share awards granted to Executive Directors and confirmed
employees are summarised below:
Deemed Start of Service End of service Vesting Number of

Scheme grant date Period period status awards
Global Bonus Offer 4 November 2015 9 April 2014 9 April 2015 Fully 6,472,138

Non- Executive Shares 4 November 2015 9 April 2014 9 April 2015 Fully 793,650
2014 Deferred Bonus 14 December 2015 14 December 2015 21 April 2017 Fully 212,701
2014 Long term incentive Plan 14 December 2015 14 December 2015 09 April 2017 Fully 2,173,259
2015 Deferred Bonus 21 April 2016 21 April 2016 20 April 2018 Fully 247,610
2016 Long term incentive Plan 22 December 2016 22 December 2016 21 December 2019 Fully 10,294,300
2016 Deferred Bonus 24 November 2017 24 November 2017 20 April 2019 Fully 278,191
2017 Long term incentive Plan 24 November 2017 24 November 2017 20 April 2020 Fully 7,938,589
2017 Deferred Bonus 2 May 2018 2 May 2018 31 December 2019 Fully 193,830
2018 Long term incentive Plan 2 May 2018 2 May 2018 2 May 2021 Fully 6,936,599
2018 Deferred Bonus 2 May 2019 2 May 2019 31 December 2020 Fully 341,069
2019 Long term incentive Plan 2 May 2019 2 May 2019 2 May 2022 Partially 7,648,850
2019 Deferred Bonus 30 Apr 2020 30 Apr 2020 31 Dec 2021 Fully 214,499
2020 Long term incentive Plan 30 Apr 2020 30 Apr 2020 1 May 2023 Partially 10,828,156
2020 Long term incentive Plan 2 Dec 2020 2 Dec 2020 2 Dec 2023 Partially 1,110,057
2021 Long term incentive Plan 2 November 2021 2 November 2021 2 November 2024 Partially 12,995,688
2021 Long term incentive Plan 10 March 2022 10 March 2022 2 November 2024 Partially 5,133,469
- Executives
2020 Deferred Bonus 10 March 2022 10 March 2022 31 December 2022 Fully 172,586
2021 Deferred Bonus 10 March 2022 10 March 2022 31 December 2023 Partially 439,908
COO Sign on Bonus 4 August 2022 4 August 2022 1 July 2024 Partially 514,575
94,038,312
iii. Determination of share awards outstanding

Share awards used in the calculation of diluted earnings per shares are based on the outstanding shares granted as at 31
December 2022.
2022 2022 2021 2021

Share award scheme (all awards) Number WAEP ₦ Number WAEP ₦
Outstanding at 1 January 2,800,942 442 8,806,987 843
Granted during the year 25,036,212 442 1,145,053 415
Exercised during the year (4,719,809) (5,736,761)
Forfeited during the year (3,101,609) (1,414,337)
Outstanding at 31 December 20,015,736 259 2,800,942 442
2022 2022 2021 2021

Share award scheme (all awards) Number WAEP $ Number WAEP $
Outstanding at 1 January 2,800,942 1.10 8,806,987 2.22
Granted during the year 25,036,212 1.10 1,145,053 1.04
Outstanding at 31 December 20,015,736 0.58 2,800,942 1.10
The following table illustrates the number and weighted average exercise prices (‘WAEP’) of and movements in deferred
bonus scheme and long-term incentive plan during the year for each available scheme.

2022 2022 2021 2021
Deferred Bonus Scheme Number WAEP ₦ Number WAEP ₦
Outstanding at 1 January - - 86,151 509
Granted during the year 479,564 541 128,348 415
Exercised during the year (172,568) (214,499)
Outstanding at 31 December 306,996 483 - -
2022 2022 2021 2021

Deferred Bonus Scheme Number WAEP $ Number WAEP $
Outstanding at 1 January - - 86,151 0.62
Granted during the year 479,564 1.21 128,348 1.04
Exercised during the year (172,568) (214,499)
Outstanding at 31 December 306,996 1.08 - -
The fair value of the modified options was determined using the same models and principles as described in the table
below on the inputs to the models used for the scheme.
2022 2022 2021 2021

Long term incentive Plan (LTIP) Number WAEP ₦ Number WAEP ₦
Granted during the year 24,556,648 - 1,016,705 415
2022 2022 2021 2021

Long term incentive Plan (LTIP) Number WAEP $ Number WAEP $
Granted during the year 24,556,648 - 1,016,705 1.04
The shares are granted to the employees at no cost. The weighted average remaining contractual life for the share awards
outstanding as at 31 December 2022 range from 0.8 to 2.3 years (2021: 0.2 to 2.7 years).
The weighted average fair value of awards granted during the year range from ₦170 to ₦581 (2021: ₦415 to ₦442.32),
$0.38 to $1.30 (2021: $1.04 to $1.10).
The fair value at grant date is independently determined using the Monte Carlo valuation method which takes into account,
the term of the award, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield, the risk-free interest rate for the term of the award and the correlations and volatilities of peer group
companies.
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any
expected changes to future volatility due to publicly available information.
iv. Inputs to the models

The following table lists the inputs to the models used for the share awards outstanding in the respective plans for the year
ended 31 December 2022:

2021
2020 2020 2021 LTIP- 2022
LTIP LTIP LTIP Execs LTIP
Weighted average fair values at the measurement date

Dividend yield (%) 0.00% 0.00% 0.00% 0.00% 0.00%
Expected volatility (%) 43% 43% 51.68% 59.29% 59.86%
Risk–free interest rate (%) 0.44% 0.44% 0.31% 2.17% 2.53%
Expected life of share options 3.00 3.00 3.00 2.64% 3.00

Share price at grant date ($) 0.38 0.51 0.66 1.12 1.18
Share price at grant date (₦) 135.38 193.48 264.32 465.74 489.76
Model used Monte Carlo Monte Carlo Monte Carlo Monte Carlo Monte Carlo
27.5 Treasury shares

This relates to Share buy-back programme for Group’s Long-Term Incentive Plan. The programme commenced from 1
March 2021 and are held by the Trustees under the Trust for the benefit of the Group’s employee beneficiaries covered
under the Trust.
28. Capital contribution

This represents M&P additional cash contribution to the Group. In accordance with the Shareholders’ Agreement, the
amount was used by the Group for working capital as was required at the commencement of operations.
2022 2021 2022 2021

Capital contribution 5,932 5,932 40,000 40,000
29. Foreign currency translation reserve

Cumulative foreign exchange differences arising from translation of the Group’s results and financial position into the
presentation currency and from the translation of foreign subsidiary is recognised in foreign currency translation reserve.
30. Interest bearing loans and borrowings

30.1 Reconciliation of interest bearings loans and borrowings
Below is the reconciliation on interest bearing loans and borrowings for 2022:
Borrowings Borrowings Borrowings Borrowings

due within due above due within due above
1 year 1 year Total 1 year 1 year Total
₦ million ₦ million ₦ million $’000 $’000 $’000
Balance as at 1 January 2022 24,988 290,803 315,791 60,661 705,953 766,614

Interest accrued 27,761 - 27,761 65,418 - 65,418
Interest capitalized 5,943 - 5,943 14,005 - 14,005
Interest repayment (26,857) - (26,857) (63,287) - (63,287)
Other financing charges (5,325) - (5,325) (12,547) - (12,547)
Transfers 4,274 (4,274) - 10,072 (10,072) -
Exchange differences 2,448 24,620 27,068 - - -
Carrying amount as at 31 December 2022 33,232 311,149 344,381 74,322 695,881 770,203
Below is the reconciliation on interest bearing loans and borrowings 2021:
Borrowing Borrowing Borrowin Borrowing

s due s due gs due s due
within above within above
1 year 1 year Total 1 year 1 year Total
Balance as at 1 January 2021 35,518 229,880 265,398 93,468 604,947 698,415
Addition 268,725 - 268,725 671,000 - 671,000
Interest accrued 29,765 - 29,765 74,322 - 74,322
Interest capitalized 4,995 - 4,995 12,473 - 12,473
Principal repayment (240,291) - (240,291) (600,000) - (600,000)
Interest repayment (27,728) - (27,728) (69,236) - (69,236)
Other financing charges (8,154) - (8,154) (20,360) - (20,360)
Transfers (40,451) 40,451 - (101,006) 101,006 -
Exchange differences 2,609 20,472 23,081 - - -
Carrying amount as at 31 December
2021 24,988 290,803 315,791 60,661 705,953 766,614
Other financing charges include term loan arrangement and commitment fees, annual bank charges, technical bank fee,
agency fee and analytical services in connection with annual service charge. These costs do not form an integral part of
the effective interest rate. As a result, they are not included in the measurement of the interest-bearing loan.
30.2 Amortised cost of borrowings

2022 2021 2022 2021
Senior loan notes 298,133 266,963 666,768 648,079
Revolving loan facilities 3,655 - 8,176 -
Reserve based lending (RBL) facility 42,593 48,828 95,259 118,535
344,381 315,791 770,203 766,614
$650 million Senior notes – April 2021

In March 2021, the Group offered 7.75% senior notes with an aggregate principal of $650 million due in April 2026. The
notes, which were priced on 25 March and closed on 1 April 2021, were issued by the Group in March 2021 and guaranteed
by certain of its subsidiaries.
The gross proceeds of the Notes were used to redeem the existing $350 million 9.25% senior notes due in 2023, to repay
in full drawings of $250 million under the existing $350 million revolving credit facility for general corporate purposes, and
to pay transaction fees and expenses. The amortised cost for the senior notes as at the reporting period is $666.77 million,
₦ 298.13 billion although the principal is $650 million.

$110 million Senior reserve-based lending (RBL) facility – March 2021
The Group through its subsidiary Westport on 28 November 2018 entered into a five-year loan agreement with interest
payable semi-annually. The RBL facility has an initial contractual interest rate of 8% + USD LIBOR as at half year (8.30%)
and a final settlement date of April 2026.
The RBL is secured against the Group’s producing assets in OML 40 via the Group’s shares in Elcrest, and by way of a
debenture which creates a charge over certain assets of the Group, including its bank accounts.
The available facility is capped at the lower of the available commitments and the borrowing base. The current borrowing
base is more than $100 million, with the available commitments at $100 million. The commitments were scheduled to
reduce to $87.5 million on 31 March 2021. The first reduction in the commitments occurred on 31st December 2019 in line
with the commitment reduction schedule contained within the Facility Agreement. This resulted in the available
commitments reducing from $125.0 million to $122.5million, with a further reduction to $100.0 million as at December 2020.
The RBL has a maturity of five years, the repayments of principal are due on a semi-annual basis so that the outstanding
balance of the RBL will not exceed the lower of (a) the borrowing base amount and (b) the total commitments. Interest
rate payable under the RBL is USD SOFR plus 8%, as long as more than 50% of the available facility is drawn. This has
been amended over time.
On 4th February 2020 Westport drew down a further $10 million increasing the debt utilised under the RBL from $90 million
to $100 million.
The interest rate of the facility is variable. The interest accrued at the reporting period is $11 million, ₦4.7 billion using an
effective interest rate of 12.17%. The interest paid was determined using SOFR rate + 8 % on the last business day of the
reporting period.
On 17th March 2021, Westport signed an amendment and restatement agreement regarding the RBL. As part of the new
agreement, the debt utilised and interest rate remain unchanged at $100 million and 8% + USD LIBOR respectively,
however, the maturity date was extended by either five years after the effective date of the loan (March 2026) or by the
reserves tail date (expected to be March 2025). Due to the modification of the original agreement and based on the facts
and circumstances, it was determined that the loan modifications were substantial. Therefore, the existing facility was
derecognised, and a new liability was recognised, and the present value of the loan commitment was moved to long term
liabilities (Borrowings due above 1 year).
On 24 May 2021 Westport drew down a further $10 million increasing the debt utilized under the RBL from $100 million to
$110 million. The amortized cost for this as at the reporting period is $95.3 million, ₦42.6 billion (Dec 2021: $108.8 million),
although the principal is $110 million.
$50 million Reserved based lending (RBL) facility – July 2021

In July 2021, the Group raised a $50 million offtake line to the Reserved Based Lending Facility. The Facility has a 6-year
tenor, maturing in 2027. As of the period under review, $11 million has been drawn on this facility. The amortised cost for
this as at the reporting period is $8.2 million, ₦3.7 billion although the principal is $11 million.
$350 million Revolving credit facility – September 2022

Seplat Energy Plc successfully refinanced its existing $350million revolving credit facility due in December 2023 with a
new three-year $350 million revolving credit facility due in June 2025 (the "RCF"). The RCF includes an automatic maturity
extension until December 2026 once a refinancing of the existing $650 million bond due in April 2026 is implemented. The
RCF is scheduled to reduce from July 2024, with such date automatically extended to July 2025 once the refinancing of
the existing $650 million bond is implemented. The RCF carries initial interest of 6% over the base rate (SOFR plus
applicable credit adjustment spread) with the margin reducing to 5% after production flowing through the Amukpe-to-
Escravos pipeline is stabilized at an average working interest production of at least 15,000 bpd over a 45 consecutive day
period. The pricing is in line with the existing RCF pricing, although it reflects a change in the base rate from LIBOR to
SOFR plus the applicable credit adjustment spread.
30.3 Outstanding principal exposures

The table below provides an overview of IBOR related exposure by currency and nature of financial instruments as at
December 2022.
2022 2021 2022 2021

USD SOFR USD LIBOR USD SOFR USD LIBOR
31 December 2022 ₦ million ₦ million $’000 $’000
Non-derivative financial liabilities

344,381 315,791 770,203 766,614
The table below shows the analysis of the principal outstanding showing the lenders of the facility as at the year-end:
Non-
Current Non-Current Total Current Current Total
31 December 2022 Interest ₦ million ₦ million ₦ million $’000 $’000 $’000
Fixed interest rate

Senior notes 7.75% - 290,635 290,635 - 650,000 650,000

The Mauritius Commercial 8.00% +
- 17,170 17,170 - 38,400 38,400
Bank Ltd SOFR
8.00% +
The Stanbic IBTC Bank Plc - 17,527 17,527 - 39,200 39,200
SOFR
The Standard Bank of South 8.00% +
- 10,016 10,016 - 22,400 22,400
Africa Limited SOFR
8.00% +
First City Monument Bank Limited - 4,471 4,471 - 10,000 10,000
SOFR
Shell Western Supply and 10.5% +
- 4,918 4,918 - 11,000 11,000
Trading Limited SOFR
Total variable interest
- 344,737 344,737 - 771,000 771,000
borrowings
Current Non-Current Total Current Non-Current Total

31 December 2021 Interest ₦ million ₦ million ₦ million $’000 $’000 $’000
Fixed interest rate

Senior notes: 7.75% - 267,755 267,755 - 650,000 650,000
Variable interest rate
borrowings
The Mauritius Commercial 8.00% +
- 15,818 15,818 - 38,400 38,400
Bank Ltd USD LIBOR
8.00% +
The Stanbic IBTC Bank Plc - 16,148 16,148 - 39,200 39,200
USD LIBOR
The Standard Bank of South 8.00% +
- 9,227 9,227 - 22,400 22,400
Africa Limited USD LIBOR
8.00% +
First City Monument Bank Limited - 4,119 4,119 - 10,000 10,000
USD LIBOR
Shell Western Supply and 10.5% +
- 4,531 4,531 - 11,000 11,000
Trading Limited USD LIBOR
- 317,598 317,598 - 771,000 771,000
31. Lease liabilities

2022 2021 2022 2021
As at 1 January 1,471 2,270 3,571 5,974

Additions during the year 1,084 384 2,424 960
Payments during the year (997) (1,347) (2,350) (3,893)
Interest on lease liabilities 161 212 380 530
Exchange difference 81 (48) - -
As at 31 December 1,800 1,471 4,025 3,571
In 2018, the Group entered into a lease agreement for an office building in Lagos. The non-cancellable period of the lease
is 5 years commencing on 1 January 2019 and ending on 31 December 2023. However, the Group has an option of either
extending the lease period on terms to be mutually agreed by parties to the lease on the expiration of the current term or
purchase the property.
The Group’s lease liability as at 31 December 2022 is split into current and non-current portions as follows:
2022 2021 2022 2021

Current 1,800 1,273 4,025 3,090
Non-current - 198 - 481
1,800 1,471 4,025 3,571
The following amount are recognised in profit or loss:
2022 2021 2022 2021

Depreciation expense of right-of-use assets 2,297 1,870 5,413 4,670
Interest expense on lease liabilities 161 212 380 530
2,458 2,082 5,793 5,200
The following are the impact of the lease on cash flow:
2022 2021 2022 2021

Depreciation expense of right-of-use assets 2,297 1,870 5,413 4,670
Interest expense on lease liabilities 161 212 380 530
Net cash flows from operating activities 2,458 2,082 5,793 5,200
Lease payments (997) (1,347) (2,350) (3,893)
Net cash flows from financing activities (997) (1,347) (2,350) (3,893)
The Group’s lease payments for drilling rigs are classified as variable lease payments. The variability arises because the
lease payments are linked to the use of the underlying assets. These variable lease payments are therefore excluded from
the measurement of the lease liabilities. At the end of the reporting period, there was no rental expense recognised within
cost of sales for these leases. The expected future cash outflows arising from variable lease payments is estimated at ₦1
billion, $2.4 million, (2021: ₦1.14 billion, $3.4 million,).
The following tables summarise the impact that exercising the purchase option would have had on the profit before tax and
net assets of the Group:
Effect on profit before tax Effect on profit before tax

2022 2022 2021 2021
₦ million $’000 ₦ million $’000

Depreciation 885 2,086 725 1,810
Interest payment (1,156) (2,723) (946) (2,363)
(271) (637) (221) (553)
Effect on net assets Effect on net assets

2022 2022 2021 2021
₦ million $’000 ₦ million $’000
Depreciation 12,885 30,268 10,463 27,631
Interest payment (13,440) (31,671) (10,939) (28,912)
(555) (1,403) (476) (1,281)
32. Provision for decommissioning obligation

₦ million $’000
At 1 January 2022 63,709 154,659
Unwinding of discount due to passage of time 994 2,343
Change in estimate 15,631 36,834
At 31 December 2022 86,670 193,836
₦ million $’000
At 1 January 2021 61,795 162,619
Unwinding of discount due to passage of time 539 1,345
Change in estimate (3,727) (9,305)
At 31 December 2021 63,709 154,659
The Group makes full provision for the future cost of decommissioning oil production facilities on a discounted basis at the
commencement of production. This relates to the removal of assets as well as their associated restoration costs. This
obligation is recorded in the period in which the liability meets the definition of a “probable future sacrifice of economic
benefits arising from a present obligation”, and in which it can be reasonably measured.
The provision represents the present value of estimated future expenditure to be incurred as highlighted in the table below
which is the current expectation as to when the producing facilities are expected to cease operations. Management
engaged a third party to assist with an estimate of the expenditure to be incurred. The estimate for 2022 were done by
Ryder Scott for all the OMLs based on current assumptions of the economic environment which management believes to
be a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to consider any
material changes to the assumptions. However, actual decommissioning costs will ultimately depend upon future market
prices for necessary decommissioning works required that will reflect market conditions at the relevant time.
Furthermore, the timing of decommissioning is likely to depend on when the fields cease to produce at economically viable
rates.
Current estimated life span of reserves

2022 2021

Seplat West Limited:
OML 4 2027 – 2037 2027 – 2037
OML 38 2027 – 2034 2027 – 2034
OML 41 2037 2037
Newton Energy Limited (OPL 283) 2037 - 2044 2037 - 2044
Seplat East Onshore Ltd (OML 53) 2028 – 2054 2028 – 2054
Elcrest (OML 40) 2031 2031
Ubima (OML 17) - 2032
33. Employee benefit obligation
33.1 Defined contribution plan

The Group contributes to a funded defined contribution retirement benefit scheme for its employees in compliance with the
provisions of the Pension Reform Act 2014. A defined contribution plan is a pension plan under which the Group pays fixed
contributions to an approved Pension Fund Administrator (‘PFA’) – a separate entity. The assets of the scheme are
managed by various Pension Fund Administrators patronised by employees of the Group. The Group’s contributions are
charged to the profit and loss account in the year to which they relate.
33.2 Defined benefit plan
i. Investment management strategy and policy

The Group operates a funded defined benefit pension plan in Nigeria under the regulation of National Pension Commission.
The plan provides benefits to all the employees (excluding Directors holding salaried employment in the Group) who have
been employed by the Group for a continuous period of five years and whose employment have been confirmed. The
employee’s entitlement to the accrued benefits occurs on retirement from the Group. The level of benefits provided on
severance depends on members’ length of service and salary at retirement age.
The overall investment philosophy of the defined benefit plan fund is to ensure safety, optimum returns and liquidity in line
with the regulation and guidelines of the Pension Reform Act 2014 or guidelines that may be issued from time to time by
National Pension Commission.
Plan assets are held in trust. Responsibility for supervision of the plan assets (including investment decisions and
contributions schedules) lies jointly with the trustees and the pension fund managers. The trustees are made up of
members of the Group’s senior management appointed by the Chief Executive Officer. The Group does not have an
investment strategy of matching match plan assets with the defined obligations as they fall due, however, the Group has
an obligation to settle shortfalls in the plan asset upon annual actuarial valuations.
The provision for the defined benefit plan is based on an independent actuarial valuation performed by Logic Professional
Services (“LPS”) using the projected unit credit method. The provision is adjusted for inflation, interest rate risks, changes
in salary and changes in the life expectancy for the beneficiaries.
The amount payable as at 31 December 2022 was ₦2.9 billion ($6.4 million), (2021: ₦4.2 billion, $10.1 million).
The following tables summarise the components of net defined benefit expense recognised in the statement of profit or
loss and other comprehensive income and in the statement of financial position for the respective plans:
ii. Liability recognised in the financial position

2022 2021 2022 2021
Defined benefit obligation 7,011 6,442 15,680 15,638
Fair value of plan assets (4,133) (2,261) (9,243) (5,489)

2,878 4,181 6,437 10,149
iii. Amount recognised in profit or loss

2022 2021 2022 2021
Current service cost 964 838 2,158 2,092
Interest cost on defined benefit obligation 864 421 1,932 1,051
Plan amendment 26 - 58 -
1,854 1,259 4,148 3,143
Return on plan assets (298) (128) (666) (319)
1,556 1,131 3,482 2,824
The Group recognises a part of its defined benefit expenses in profit or loss and recharges the other part to its joint
operations partners, this is recognised as a receivable from the partners. Below is the breakdown:
2022 2021 2022 2021

Charged to profit or loss 660 439 1,556 1,095
Charged to receivables 896 692 1,926 1,729
iv. Re-measurement (gains)/losses in other comprehensive income
2022 2021 2022 2021

Remeasurement gains due to changes in
(299) (953) (705) (2,380)
Financial and demographic assumptions
Remeasurement (gains)/losses due to experience
(629) 503 (1,483) 1,255
adjustment
Remeasurement gain on plan assets 104 103 244 256
(824) (347) (1,944) (869)
Deferred tax expense on remeasurement losses 379 296 892 739
Balance as at 31 December (445) (51) (1,052) (130)
The Group recognises a part of the remeasurement losses in other comprehensive income and recharges the other part
to its joint operations partners. Below is the breakdown:
2022 2021 2022 2021


Recharged to receivables - (190) - (478)
Credited to other comprehensive income (825) (157) (1,944) (391)
Remeasurement losses due to changes in
(825) (347) (1,944) (869)
financial and demographic assumptions
v. Deferred tax (expense)/credit on remeasurement (gains)/losses

The Group recognises deferred tax (credit on a part of the remeasurement (gain)/ losses in other comprehensive
income/(loss). Below is the breakdown:
2022 2021 2022 2021

Charged to other comprehensive income 379 133 892 333
Charged to receivables - 163 - 406
Deferred tax on remeasurement losses 379 296 892 739
vi. Changes in the present value of the defined benefit obligation are as follows:
2022 2021 2022 2021

Defined benefit obligation as at 1 January 6,442 5,304 15,638 13,958
Current service cost 965 838 1,571 2,092
Interest cost on benefit obligation 864 421 1,345 1,051
Remeasurement losses due to changes in financial and
(299) (953) (669) (2,380)
demographic assumptions
Remeasurement (gains)/losses due to experience adjustments (629) 503 (1,407) 1,255
Benefits paid by the employer - - - -
Benefits from the fund (357) (135) (798) (338)
Exchange differences 25 464 - -
Defined benefit obligation at 31 December 7,011 6,442 15,680 15,638
vii. The changes in the fair value of plan assets is as follows:
2022 2021 2022 2021

Balance as at 1 January (2,261) (1,241) (5,489) (3,267)
Employer contribution (2,015) (1,000) (4,507) (2,497)
Return on plan assets (298) (128) (666) (319)
Benefits paid from fund 357 135 992 338
Remeasurement loss on plan assets 104 103 427 256
Exchange differences (20) (130) - -
Balance as at 31 December (4,133) (2,261) (9,243) (5,489)

The net liability disclosed above relates to funded plans as follows:
2022 2021 2022 2021

Present value of funded obligations 7,011 6,442 15,680 15,638

Fair value of plan assets (4,133) (2,261) (9,243) (5,489)
Deficit of funded plans 2,878 4,181 6,437 10,149
The fair value of the plan asset of the Group at the end of the reporting period was determined using the market values of
the comprising assets as shown below:
2022 2022
Quoted Not quoted Total Quoted Not quoted Total
Equity Instrument 97 - 97 217 - 217
Treasury bills and money market 1,519 - 1,519 3,397 - 3,397
Infrastructure Fund 72 - 72 161 - 161
Bonds 356 - 356 796 - 796
Cash at bank - 2,095 2,095 - 4,685 4,685
Payables - (6) (6) - (13) (13)
Receivables - - - - - -
Total plan asset as at 31 December 2,044 2,089 4,133 4,571 4,672 9,243
2021 2021
Quoted Not quoted Total Quoted Not quoted Total
Equity Instrument 73 - 73 177 - 177
Treasury bills and Money market 1,164 - 1,164 2,816 - 2,816
Bonds 440 - 440 1,068 - 1,068
Cash at bank - 589 589 - 1,431 1,431
Payables - (5) (5) - (12) (12)
Receivables - - - - 9 9
Total plan asset as at 31 December 1,677 584 2,261 4,061 1,428 5,489
viii. The principal assumptions used in determining defined benefit obligations for the Group’s plans
are shown below:
2022 2021
% %
Discount rate 15 13.5
Average future pay increase 13 12
Average future rate of inflation 13 12
a) Mortality in service
Number of deaths in year out of 10,000 lives
Sample age 2022 2021
25 1 1
30 29 29
35 60 60
40 99 99
45 90 90

Withdrawal from service
Rates
Age band 2022 2021
Less than or equal to 30 1.0% 1.0%
31 – 39 1.5% 1.5%
40 – 44 1.5% 1.5%
45 – 55 1.0% 1.0%
56 – 60 0.0% 0.0%
A quantitative sensitivity analysis for significant assumption is as shown below:
Discount Rate Salary increases Mortality

1% 1% 1% 1% 1% 1%
increase decrease increase decrease increase decrease
Assumptions Base ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million
Sensitivity Level: Impact on the net defined benefit obligation

31 December 2022 7,011 (6,395) 7,719 7,759 (6,351) 7,016 (7,006)
31 December 2021 6,442 (603) 698 733 (642) 3 (4)
Discount Rate Salary increases Mortality

1% 1% 1% 1% 1% 1%
increase decrease increase decrease increase decrease
Assumptions Base $’000 $’000 $’000 $’000 $’000 $’000
Sensitivity Level: Impact on the net defined benefit obligation

31 December 2022 15,680 (15,069) 18,189 18,284 (14,966) 16,533 (16,509)
31 December 2021 16,086 (1,506) 1,743 1,830 (1,603) 7 (10)
The sensitivity analyses above have been determined based on a method that extrapolates the impact on net defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The
methods and assumptions used in preparing the sensitivity analysis did not change compared to prior period.
The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur and changes in some of the assumptions may be correlated.
The expected maturity analysis of the undiscounted defined benefit plan obligation is as follows:
2022 2021 2022 2021

Within the next 12 months
421 368 942 919
(next annual reporting period)
Between 2 and 5 years 3,202 2,015 7,161 5,031
Between 6 and 10 years 11,423 8,400 25.547 20,975
Beyond 10 years 178,775 143,328 399,828 357,891
193,821 154,111 433,478 384,816
The weighted average liability duration for the Plan is 12.17 years (2021: 13.96 years). The longest weighted duration for
Nigerian Government bond as at 31 December 2022 was about 6.65 years (2021: 7.11 years) with a gross redemption
yield of about 15% (2021: 13.28%).
a) Risk exposure

Through its defined benefit pension plans, the Group is exposed to several risks. The most significant of which are detailed
below:
b) Liquidity risk
The plan liabilities are not fully funded and as a result, there is a risk that the Group may not have the required cash flow
to fund future defined benefit obligations as they fall due.
c) Inflation risk
This is the risk of an unexpected significant rise/fall of market interest rates. A rise leads to a fall in long term asset values
and a rise in liability values.
d) Life expectancy
The majority of the plans’ obligations are to provide benefits for the life of the member, so increases in life expectancy will
result in an increase in the plans’ liabilities. This is particularly significant, where inflationary increases result in higher
sensitivity to changes in life expectancy.
e) Asset volatility
The Group holds a significant proportion of its plan assets in equities, which are expected to outperform corporate bonds
in the long term while providing volatility and risk in the short term.
Details of the Actuary is shown below:
Name of signer Name of firm FRC number Services rendered

Chidiebere Orji Logic Professional Services FRC/2021/004/00000022718 Actuary valuation services
34. Trade and other payables

2022 2021 2022 2021
Trade payable 48,582 49,607 108,654 120,426
Accruals and other payables 96,112 67,630 214,953 164,175
NDDC levy 2,685 5,283 6,004 12,826
Royalties payable 30,749 14,100 68,769 34,228
Overlift payable 27,494 14,584 61,489 35,403
205,622 151,204 459,869 367,058
Included in accruals and other payables are field accruals of $106.1 million, ₦38 billion (2021: $83.5 million, ₦ 34.4 billion)
and other vendor payables of $38.1 million, ₦26.5 billion (Dec 2021: $15.6 million, ₦ 6.4 billion). Royalties payable include
accruals in respect of crude oil and gas production for which payment is outstanding at the end of the period.
Overlifts are excess crude lifted above the share of production. It may exist when the crude oil lifted by the Group during
the period is above its ownership share of production. Overlifts are initially measured at the market price of oil at the date
of lifting and recognised in profit or loss. At each reporting period, overlifts are remeasured at the current market value.
The resulting change, as a result of the remeasurement, is also recognised in profit or loss and any amount unpaid at the
end of the year is recognised in overlift payable.
35. Contract liabilities

2022 2021 2022 2021
- - - -
35.1 Reconciliation of contract liabilities

2022 2021 2022 2021

Opening balance - 3,599 - 9,470
Recognised as revenue during the year - (3,599) - (9,470)
Exchange difference - - - -
- - - -
Contract liabilities represents take or pay volumes contracted with Azura for 2022 which has been utilized. In line with the
contract, Azura can make a demand on the makeup gas but only after they have taken and paid for the take or pay quantity
for the respective year. The contract liability is accrued for two years after which the ability to take the makeup gas expires
and any outstanding balances are recognised as revenue from contracts with customers.
36. Earnings/(Loss) per share EPS/(LPS)
Basic
Basic EPS/(LPS) is calculated on the Group’s profit after taxation attributable to the parent entity, which is based on the
weighted average number of issued and fully paid ordinary shares at the end of the year.
Diluted
Diluted EPS/(LPS) is calculated by dividing the profit after taxation attributable to the parent entity by the weighted average
number of ordinary shares outstanding during the year plus all the dilutive potential ordinary shares (arising from
outstanding share awards in the share-based payment scheme) into ordinary shares.
2022 2021 2022 2021

Profit attributable to Equity holders of the parent 26,483 56,786 62,407 141,784
Profit/(loss) attributable to Non-controlling interests 17,950 (9,855) 42,299 (24,608)
Shares ‘000 Shares ‘000 Shares ‘000 Shares ‘000

Weighted average number of ordinary shares in issue 588,446 581,646 588,446 581,646
Outstanding share-based payments (shares) 1 2,801 1 2,801
Weighted average number of ordinary shares
588,447 584,447 588,447 584,447
adjusted for the effect of dilution
Basic earnings per share for the period ₦ ₦ $ $

Basic earnings per share 45.00 97.63 0.11 0.24
Diluted earnings per share 45.00 97.16 0.11 0.24
Profit used in determining basic/diluted earnings per

26,483 56,786 62,407 141,784
share
The weighted average number of issued shares was calculated as a proportion of the number of months in which they
were in issue during the reporting period.
37. Dividends paid and proposed

As at 31 December 2022, the final proposed dividend for the Group is ₦11.18, $0.025 (2021: ₦10.3, $0.025) per share
and the proposed Special Dividend is ₦22.36, $0.05 per share (2021: nil).
2022 2021 2022 2021

Cash dividends on ordinary shares declared and paid:

Dividend for 2022: ₦42.60 ($0.10) per share 588,444,561 shares in issue
24,972 29,377 58,844 73,354
(2021: ₦50 ($0.13)) per share, 584,035,845 shares in issue)
Proposed dividend on ordinary shares:

Final proposed dividend for the year 2022:
6,553 6,016 14,655 14,601
₦11.18 ($0.025) (2021: ₦10.3 ($0.025)) per share
Special proposed dividend for the year 2022:
₦22.36 ($0.05) (2021: nil) per share 13,106 0 29,270 0
During the year, ₦32.2 billion, $44.1 million of dividend was paid at ₦54.70, $0.070 per share as final dividend for 2022.
As at 31 March 2022, ₦ 10.47 billion, $ 14.7 million was paid at ₦17.79, $0.02 per share for 2022 Q1; As at 30 June 2022,
₦ 10.62 billion, $ 14.7 million was paid at ₦18.05, $0.02 per share for 2022 Q2; As at 30 September 2022, ₦ 11.10 billion,
$ 14.7 million was paid at ₦18.86, $0.02 per share for 2022 Q3. Final and Special Naira dividend payments will be based
on the Naira/Dollar rates on the date for determining the exchange rate. The payment is subject to shareholders’ approval
at the 2022 Annual General Meeting. The tax effect of dividend paid during the year was $4.3 million (₦5.6 billion).
38. Related party relationships and transactions

The Group is controlled by Seplat Energy Plc (the parent Company). The Parent Company is owned 6.43% either directly
or by entities controlled by A.B.C Orjiako (SPDCL(BVI)) and members of his family. The remaining shares in the parent
Company are widely held.
The goods and services provided by the related parties are disclosed below.
i. Shareholders of the parent company

Shebah Petroleum Development Company Limited SPDCL (‘BVI’): The former Chairman of Seplat is a director and
shareholder of SPDCL (BVI). The company provided consulting services to Seplat. Services provided to the Group during
the period amounted to $916.5 thousand, ₦409.8 million (2021: $1.1 million, ₦0.45 billion). Payables amounted to nil in
the current period.
Amaze Limited: The former Chairman of Seplat is a director and shareholder of Amaze Ltd. The company provided
consulting services to Seplat. Services provided to the Group during the period amounted to $1,457 thousand, ₦651.3
million.
ii. Entities controlled by key management personnel (Contracts<$1million in 2022)

Abbeycourt Trading Company Limited: The former Chairman of Seplat is a director and shareholder. The Company
provides diesel supplies to Seplat in respect of Seplat’s rig operations. This amounted to nil during the period (2021: $222
thousand, ₦88.9 million). Receivables amounted to nil (2021: $6, ₦2,649).
Stage leasing (Ndosumili Ventures Limited): A subsidiary of Platform Petroleum Limited. The company provides
transportation services to Seplat. This amounted to nil (2021: $278 thousand, ₦111.3 million). Payables amounted to nil
in the current period (2021: $3.2 thousand, ₦1.3 million).
iii. Entities controlled by Directors of the Company

Ubosi Eleh and Company (controlled by Director Ernest Ebi): The Company provided a leasehold property to Seplat.
The amount during the period amounted to $53.7 thousand, ₦24 million.
39. Information relating to employees
39.1 Key management compensation

Key management includes executive and members of the leadership team. The compensation paid or payable to key
management for employee services is shown below:
2022 2021 2022 2021

Salaries and other short-term employee benefits 1,943 1,560 4,579 3,895

Post-employment benefits 190 179 448 447
Share based payment expenses 692 483 1,632 1,207
2,825 2,222 6,659 5,549
39.2 Chairman and Directors’ emoluments

2022 2021 2022 2021
Chairman (Non-executive) 412 403 971 1,007
Chief Executive Officer 500 475 1,177 1,186
Executive Directors 508 727 1,196 1,815
Non-Executive Directors 1,006 1,346 2,371 3,361
Total 2,426 2,951 5,715 7,369
39.3 Highest paid Director

2022 2021 2022 2021
Highest paid Director 500 475 1,177 1,186
Emoluments are inclusive of income taxes.
39.4 Number of Directors

The number of Directors (excluding the Chairman) whose emoluments fell within the following ranges was:
2022 2021
Number Number
Zero – ₦19,896,500 - -
₦19,896,501 – ₦115,705,800 - -
₦115,705,801 – ₦157,947,600 - -
Above ₦157,947,600 3 3
3 3
2022 2021
Number Number
Zero – $65,000 - -
$65,001 – $378,000 - -
$378,001 – $516,000 - -
Above $516,000 3 3
3 3
39.5 Employees
The number of employees (other than the Directors) whose duties were wholly or mainly discharged within Nigeria, and
who earned over ₦1,989,500 ($6,500), received remuneration (excluding pension contributions) in the following ranges:
2022 2021
Number Number

₦1,989,650 – ₦4,897,600 25 16
₦4,897,601– ₦9,795,200 115 134
₦9,795,201 – ₦14,692,800 197 180
Above ₦14,692,800 259 202
596 532
2022 2021
Number Number
$6,500 – $16,000 25 16
$16,001 – $32,000 115 134

$32,001 – $48,000 197 180
Above $48,000 259 202
596 532
39.6 Number of persons employed during the year

The average number of persons (excluding Directors) in employment during the year was as follows:
2022 2021
Number Number
Senior management 36 31
Managers 163 136

Senior staff 312 245
Junior staff 85 120
596 532
39.7 Employee cost

Seplat’s staff costs (excluding pension contribution) in respect of the above employees amounted to the following:
2022 2021 2022 2021

Salaries & wages 12.686 13,021 29,894 32,512
12,686 13,021 29,894 32,512
40. Commitments and contingencies
40.1 Contingent liabilities

The Group is involved in a number of legal suits as defendant. The estimated value of the contingent liabilities for the year
ended 31 December 2022 is ₦5.1 billion, $11.45 million (2021: ₦7.9 billion, $19.2 million). The contingent liability for the
year is determined based on possible occurrences, though unlikely to occur. No provision has been made for this potential
liability in these financial statements. Management and the Group’s solicitors are of the opinion that the Group will suffer
no loss from these claims.
Under the OML 40 Joint Operating Agreement (‘JOA’), the Group is responsible for its share of expenditures incurred on
OML 40 in respect of its participating interest, on the basis that the operator’s estimated expenditures are reasonably
incurred based on the approved work program and budget. From time to time, management disputes such expenditures
on the basis that they do not meet these criteria, and when this occurs management accrues at the period end for its best

estimate of the amounts payable to the operator. Consequently, the amounts recognised as accruals as of 31 December
2022 reflect management’s best estimate of amounts that have been incurred in accordance with the JOA and that will
ultimately be paid to settle its obligations in this regard.
However, management recognises there are a range of possible outcomes, which may be higher or lower than the
management’s estimate of accrued expenditure. It is estimated that around $10,233,128 (2021: $10,810,495) of possible
expenditure currently remains under dispute.
41. Events after the reporting period

There was no event after the reporting period which could have a material effect on the disclosures and the financial
position of the Group as at 31 December 2022 and on its profit or loss and other comprehensive income for the period
ended.

Statement of value added
2022 2021 2022 2021

₦ million % ₦ million % $’000 % $’000 %
Revenue from contracts with customers 403,913 293,631 951,795 733,188
Other (loss)/income (15,302) 8,056 (36,054) 20,118
Finance income 491 126 1,157 314
Cost of goods and other services:

Local (116,351) (74,697) (274,171) (186,526)
Foreign (77,568) (49,798) (182,780) (124,350)
Valued added 195,183 100% 177,318 100% 459,947 100% 442,744 100%
Applied as follows:
2022 2021 2022 2021
₦ million % ₦ million % $’000 % $’000 %
To employees:
– as salaries and labour related 23,192 12% 17,268 10% 54,654 12% 43,116 10%
expenses
To external providers of capital:
28,916 15% 30,516 17% 68,141 15% 76,197 17%
– as interest
To Government: 15%
28,727 15,061 8% 67,693 15% 37,606 8%
– as Group taxes
Retained for the Group’s future:
– For asset replacement,
56,345 29% 58,506 33% 132,776 29% 146,086 33%
depreciation,
depletion & amortization
Deferred tax (charges)/credit 13,570 7% 9,036 5% 31,977 7% 22,563 5%
Profit for the year 44,433 23% 46,931 27% 104,706 23% 117,176 27%
Valued added 195,183 100% 177,318 100% 459,947 100% 442,744 100%
The value added represents the additional wealth which the Group has been able to create by its own and its employees’
efforts. This statement shows the allocation of that wealth to employees, providers of finance, shareholders, government
and that retained for the creation of future wealth.

Five-year financial summary
2022 2021 2020 2019 2018
Revenue from contracts with customers 403,913 293,631 190,922 214,157 228,391
Profit /(loss) before tax 86,730 71,028 (28,872) 93,955 80,615
Income tax expense (42,297) (24,097) (1,840) (8,939) (35,748)
Profit/(loss) for the year 44,433 46,931 (30,712) 85,016 44,867
2022 2021 2020 2019 2018

Capital employed:
Issued share capital 297 296 293 289 286
Share premium 91,317 90,383 86,917 84,045 82,080
Share based payment reserve 5,936 4,914 7,174 8,194 7,298
Treasury shares (2,025) (2,025) - - -
Capital contribution 5,932 5,932 5,932 5,932 5,932
Retained earnings 241,386 239,429 211,790 259,690 192,723
Foreign currency translation reserve 447,014 385,348 331,289 202,910 203,153
Non-controlling interest (2,963) (20,913) (11,058) (7,252) -
Total equity 786,894 703,364 632,337 553,808 491,472
Represented by:
Non-current assets 1,186,869 1,324,724 1,083,683 717,664 502,512
Current assets 394,743 278,812 227,154 286,569 264,159
Non-current liabilities (527,361) (702,070) (499,349) (258,903) (184,808)
Current liabilities (267,357) (198,102) (179,151) (191,522) (90,391)
Net assets 786,894 703,364 632,337 553,808 491,472

Five-year financial summary
2022 2021 2020 2019 2018

$’000 $’000 $’000 $’000 $’000
Revenue from contracts with customers 951,795 733,188 530,467 697,777 746,140
Profit/(loss) before tax 204,376 177,345 (80,209) 306,133 263,364
Income tax (expense)/credit (99,670) (60,169) (5,113) (29,125) (116,788)
Profit/(loss) for the year 104,706 117,176 (85,322) 277,008 146,576
2022 2021 2020 2019 2018

$’000 $’000 $’000 $’000 $’000
Capital employed:
Issued share capital 1,864 1,862 1,855 1,845 1,834
Share premium 522,227 520,138 511,723 503,742 497,457
Treasury shares (4,915) (4,915) - - -
Retained earnings 1,189,697 1,185,082 1,116,079 1,249,156 1,030,954
Foreign currency translation reserve 2,622 1,933 992 2,391 3,141
Non-controlling interest (16,505) (58,804) (34,196) (23,621) -
Total equity 1,759,883 1,707,486 1,664,045 1,803,939 1,600,885
Represented by:
Non-current assets 2,654,415 3,215,899 2,851,803 2,337,670 1,639,843
Current assets 882,842 676,835 597,770 933,440 860,455
Non-current liabilities (1,179,436) (1,704,343) (1,314,076) (843,322) (601,976)
Current liabilities (597,938) (480,905) (471,452) (623,849) (294,437)
Net assets 1,759,883 1,707,486 1,664,045 1,803,939 1,600,885

Supplementary financial information (unaudited)
42. Estimated quantities of proved plus probable reserves

Oil & NGLs Natural Gas Oil Equivalent
MMbbls Bscf MMboe
At 31 December 2021 219.25 1,379.44 457.07
Revisions of previous estimates (3.5) 4.3 (2.8)

Discoveries and extensions 0.0 0.0 0.0
Production (9.3) (40.4) (16.2)
At 31 December 2022 206.4 1,343.3 438.07
Reserves are those quantities of crude oil, natural gas and natural gas liquid that, upon analysis of geological and
engineering data, appear with reasonable certainty to be recoverable in the future from known reservoirs under existing
economic and operating conditions.
Elcrest holds a 45% participating interest in OML40. Eland holds a 45% interest in Elcrest although has control until such
point as Westport loan is fully repaid.
As additional information becomes available or conditions change, estimates are revised.
43. Capitalised costs related to oil producing activities

2022 2021 2022 2021
Capitalised costs:
Unproved properties - 24,901 - 60,450
Proved properties 1,199,570 977,281 2,682,821 2,372,447
Total capitalised costs 1,199,570 1,002,182 2,682,821 2,432,897
Accumulated depreciation (458,231) (341,437) (1,024,828) (828,872)
Net capitalised costs 741,339 660,745 1,657,993 1,604,025
Capitalised costs include the cost of equipment and facilities for oil producing activities. Unproved properties include
capitalised costs for oil leaseholds under exploration, and uncompleted exploratory well costs, including exploratory wells
under evaluation. Proved properties include capitalised costs for oil leaseholds holding proved reserves, development
wells and related equipment and facilities (including uncompleted development well costs) and support equipment.

44. Concessions
The original, expired and unexpired terms of concessions granted to the Group as at 31 December 2022 are:
Original Term in years expired Unexpired

Seplat West Limited OML 4, 38 & 41 38 22 16
Newton OML 56 16 12 4
Seplat East Swamp OML 53 30 24 6
Seplat Swamp OML 55 30 24 6
Elcrest OML 40 18.8 3 15.8
45. Results of operations for oil producing activities

2022 2021 2022 2021
Revenue from contracts with customers 356,192 247,651 839,344 618,377
Other income – net (15,302) 8,056 (36,054) 20,118

Production and administrative expenses (221,571) (167,313) (522,123) (417,789)
Impairment (losses)/reversal (2,730) 13,626 (6,432) 34,024
Depreciation & amortization (54,610) (54,762) (128,684) (136,738)
Taxation (30,775) (21,007) (72,527) (52,453)
46. Reclassification
Certain comparative figures have been reclassified in line with the current year’s presentation.
47. Exchange rates used in translating the accounts to Naira

The table below shows the exchange rates used in translating the accounts into Naira
Basis 31 December 2022 31 December 2021

N/$ N/$
Property, plant & equipment – opening balances Historical rate Historical Historical
Property, plant & equipment – additions Average rate 424.37 400.48
Property, plant & equipment - closing balances Closing rate 447.13 411.93
Current assets Closing rate 447.13 411.93
Current liabilities Closing rate 447.13 411.93
Equity Historical rate Historical Historical
Income and Expenses: Overall Average rate 424.37 400.48

Company Accounts
For the year ended
31 December 2022
28 February 2023
(Expressed in Nigerian Naira
and US Dollars)
Reliable energy,
limitless potential

Separate financial statements
Statement of profit or loss and other comprehensive income
Restated Restated
31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021
Other loss 8 (1,273) (4) (2,998) (10)
General and administrative expenses 9 (18,606) (6,228) (43,853) (15,538)
Impairment reversal/(charge) on financial
10 360 (372) 878 (930)
assets
Operating loss (19,519) (6,604) (45,973) (16,478)
Finance income 11 412 131 971 327
Loss before taxation (19,107) (6,473) (45,002) (16,151)
Income tax expense 14 - - - -
Loss for the year (19,107) (6,473) (45,002) (16,151)
Items that may be reclassified to profit or loss:

Foreign currency translation difference 58,412 197,801 - -
Other comprehensive income
for the year 58,412 197,801 - -
Total comprehensive income/(loss)
39,305 191,328 (45,002) (16,151)
for the year
Basic loss per share ₦/ ($) 24 (32.47) (12.98) (0.08) (0.03)
Diluted loss per share ₦/ ($) 24 (32.47) (12.92) (0.08) (0.03)
See note 5.1 for details regarding the restatement as a result of an error.

Separate Statement of financial position
Restated Restated Restated Restated
31 Dec 2022 31 Dec 2021 1 Jan 2021 31 Dec 2022 31 Dec 2021 1 Jan 2021
Notes ₦ million ₦ million ₦ million $’000 $’000 $’000
Assets
Non-current assets
Property, plant and equipment 14 680 274 304 1,519 664 799
Investment in subsidiaries 16 871,000 798,795 797,685 1,947,980 1,940,388 1,937,691
Investment in Joint ventures 17 93,904 86,512 79,806 210,016 210,016 210,016
Total non-current assets 965,584 885,581 877,795 2,159,515 2,151,068 2,148,506
Current assets
Trade and other receivables 18 722,340 520,040 501 1,615,501 1,262,448 1,320
Prepayments 15 97 54 2 218 131 5
Cash and cash equivalents 19 64,913 75,450 61,950 145,185 183,162 163,024
Restricted cash 19 4,321 3,307 10,671 9,664 8,028 28,081
Total current assets 791,671 598,851 73,124 1,770,568 1,453,769 192,430
Total assets 1,757,255 1,484,432 950,919 3,930,083 3,604,837 2,340,936
Equity and Liabilities

Equity
Issued share capital 20 297 296 293 1,864 1,862 1,855
Share premium 20 91,317 90,383 86,917 522,227 520,138 511,723
Share based payment reserve 20 6,108 4,914 7,174 24,893 22,190 27,592
Treasury shares 20 (2,025) (2,025) - (4,915) (4,915) -
Capital contribution 21 5,932 5,932 5,932 40,000 40,000 40,000
Retained earnings 176,136 220,215 255,859 1,037,830 1,141,676 1,230,666
Foreign currency translation reserve 22 447,429 388,690 393,687 - - -
Total shareholders’ equity 725,194 708,405 749,862 1,621,899 1,720,951 1,811,836
Current liabilities
Trade and other payables 23 1,032,061 776,027 201,057 2,308,184 1,883,885 529,100
Total liabilities 1,032,061 776,027 201,057 2,308,184 1,883,885 529,100
Total shareholders’ equity and
1,757,255 1,484,432 950,919 3,930,083 3,604,836 2,340,936
liabilities
The financial statements of Seplat Energy Plc for the year ended 31 December 2022 were authorised for issue in
accordance with a resolution of the Directors on 28 February 2023 and were signed on its behalf by:
B. Omiyi R.T Brown E.Onwuka
FRC/2016/IODN/00000014093 FRC/2014/PRO/DIR/003/00000017939 FRC/2020/PRO/ICAN/006/00000020861
Chairman Chief Executive Officer Chief Financial Officer
28 February 2023 28 February 2023 28 February 2023

Statement of changes in equity
Share Foreign
Issued based currency
share Share payment Treasury Capital Retained translation Total
capital premium reserve shares contribution earnings reserve Equity
₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million ₦ million
At 1 January 2021 293 86,917 7,174 - 5,932 254,070 191,216 545,602

Correction of prior period error - - - - - 1,789 - 1,789
Balance at 1 January
293 86,917 7,174 - 5,932 255,859 191,216 547,391
(Restated)
Loss for the year - - - - - (6,473) - (6,473)
Other comprehensive loss - - - - - - 197,801 197,801
Total comprehensive loss for
- - - - - (6,473) 197,801 191,328
the year

Unclaimed dividend forfeited - - - - - 206 - 206
Dividends paid - - - - - (29,377) - (29,377)
- - 1,209 - - - - 1,209
(Note 20)
Vested shares (Note 20) 3 3,466 (3,469) - - - - -
Shares re-purchased (Note 20) - - - (2,025) - - - (2,025)
Total 3 3,466 (2,260) (2,025) - (29,171) - (29,987)
At 31 December 2021
296 90,383 4,914 (2,025) 5,932 220,215 389,017 708,732
(Restated)
At 1 January 2022 296 90,383 4,914 (2,025) 5,932 220,215 389,017 708,732
Loss for the year - - - - - (19,017) - (19,017)

Other comprehensive income - - - - - - 58,412 58,412
Total comprehensive
- - - - - (19,017) 58,412 39,305
(loss)/income for the year
Dividend paid - - - - - (24,972) - (24,972)

- - 263 - - - - 263
(Note 21)
Additional investment in
subsidiaries – Share-based - - 3,384 - - - - 3,384
payment (Note 20)
Vested shares (Note 20) 1 934 (2,453) - - - - (1,518)
Total 1 934 1,194 - - (24,972) - (22,843)
At 31 December 2022
297 91,317 6,108 (2,025) 5,932 176,136 447,429 725,194
(Restated)

Statement of changes in equity
Share
Issued based
share Share payment Treasury Capital Retained Total
capital premium reserve shares contribution Earnings Equity
$’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2021 1,855 511,723 27,592 - 40,000 1,225,958 1,807,128

Correction of prior period error - - - - - 4,708 4,708
Balance at 1 January 2021
1,855 511,723 27,592 - 40,000 1,230,666 1,811,836
(Restated)
Loss for the year - - - - - (16,151) (16,151)
Other comprehensive loss - - - - - - -
Total comprehensive loss
- - - - - (16,151) (16,151)
for the year

Unclaimed dividend forfeited - - - - - 515 515
Dividends paid - - - - - (73,354) (73,354)
Share based payments (Note 20) - - 3,020 - - - 3,020
Vested shares (Note 20) 7 8,415 (8,422) - - - -
Shares re-purchased (Note 20) - - - (4,915) - - (4,915)
Total 7 8,415 (5,402) (4,915) - (72,839) (74,734)
At 31 December 2021 (Restated) 1,862 520,138 22,190 (4,915) 40,000 1,141,676 1,720,951
At 1 January 2022 1,862 520,138 22,190 (4,915) 40,000 1,141,676 1,720,951
Loss for the year - - - - - (45,002) (45,002)

Other comprehensive income - - - - - - -
Total comprehensive loss
- - - - - (45,002) (45,002)
for the year

Dividend paid - - - - - (58,844) (58,844)
Share based payments (Note 20) - - 619 - - - 619
Additional investment in subsidiaries
- - 7,569 - - - 7,569
– Share based payment (Note 20)
Vested shares (Note 20) 2 2,089 (5,485) - - - (3,394)
Total 2 2,089 2,703 - - (58,844) (54,050)
At 31 December 2022 1,864 522,227 24,893 (4,915) 40,000 1,037,830 1,621,899

Statement of cash flows
Restated 31 Dec Restated

31 Dec 2022
31 Dec 2021 2022 31 Dec 2021
Cash generated from operations 13 68,557 32,310 161,544 78,122

Net cash inflows from operating activities 68,557 32,310 161,544 78,122
Deposit for investment 18 (57,367) - (128,300) -

Payment for acquisition of other property, plant and equipment 14 (475) (34) (1,122) (85)
Interest received 11 412 131 971 327
Investment in Subsidiary 16 (3,222) - (7,592) -
Restricted Cash 19.2 (694) 8,260 (1,636) 20,053
Net cash (outflows)/inflows from investing activities (61,346) 8,357 (137,679) 20,295
Shares purchased for employees* 20 - (2,025) - (4,915)
Dividends paid 25 (24,972) (29,377) (58,844) (73,354)

Net cash outflows from financing activities (24,972) (31,402) (58,844) (78,269)
Net (decrease) / increase in cash and cash equivalents (17,761) 9,265 (34,979) 20,148
Cash and cash equivalents at beginning of the year 77,728 61,950 183,162 163,024
Effects of exchange rate changes on cash and cash equivalents 4,946 4,235 (2,998) (10)
Cash and cash equivalents at end of the year 64,913 75,450 145,185 183,162
*Included in restricted cash, is a balance of $8 million (N3.6 billion) set aside in the Stamping Reserve account for the
revolving credit facility (RCF). The amount is to be used for the settlement of all fees and costs payable for the purposes
of stamping and registering the Security Documents at the stamp duties office and at the Corporate Affairs Commission
(CAC).
*Shares purchased for employees of nil (2021: $4.9 million, ₦2.02 billion) represent shares purchased in the open market
for employees of the Company.

Notes to the separate
financial statements
1. Corporate information and business

Seplat Energy Plc (formerly called Seplat Petroleum Development Company Plc, hereafter referred to as ‘Seplat’ or the
‘Company’) was incorporated on 17 June 2009 as a private limited liability company and re-registered as a public company
on 3 October 2014, under the Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004. The
Company commenced operations on 1 August 2010. The Company is principally engaged in oil and gas exploration.
The Company’s registered address is: 16a Temple Road (Olu Holloway), Ikoyi, Lagos, Nigeria.
The Company acquired, pursuant to an agreement for assignment dated 31 January 2010 between the Company, Shell
Petroleum Development Company, TOTAL and AGIP, a 45% participating interest in the following producing assets:
OML 4, OML 38 and OML 41 located in Nigeria. The total purchase price for these assets was ₦104 billion ($340 million)
paid at the completion of the acquisition on 31 July 2010 and a contingent payment of ₦10 billion ($33 million) payable 30
days after the second anniversary, 31 July 2012, if the average price per barrel of Brent Crude oil over the period from
acquisition up to 31 July 2012 exceeds ₦24,560 ($80) per barrel. ₦110 billion ($358.6 million) was allocated to the
producing assets including ₦5.7 billion ($18.6 million) as the fair value of the contingent consideration as calculated on
acquisition date. The contingent consideration of ₦10 billion ($33 million) was paid on 22 October 2012.
On 1 January 2020, Seplat Energy Plc transferred its 45% participating interest in OML 4, OML 38 and OML 41 (“transferred
assets”) to Seplat West Limited. As a result, Seplat ceased to be a party to the Joint Operating Agreement in respect of
the transferred assets and became a holding company. Seplat West Limited became a party to the Joint Operating
Agreement in respect of the transferred assets and assumed its rights and obligations.
On 20 May 2021, following a special resolution by the Board in view of the Company’s strategy of transitioning into an
energy Company promoting renewable energy, sustainability, and new energy, the name of the Company was changed
from Seplat Petroleum Development Company Plc to Seplat Energy Plc under the Companies and Allied Matters Act 2020.
2. Significant changes in the current accounting period

The following significant changes occurred during the reporting year ended 31 December 2022:
▪ During the period, Seplat Energy Offshore Limited was incorporated on 7 February 2022. The percentage ownership
of the Company is 100%.
▪ On 22 April 2022, the Company announced the appointment of three new directors as Independent Non-Executive
Directors of Seplat Energy Plc, resumption took effect on 18 May 2022. The three new directors are Mrs. Bashirat
Odunewu, Mr. Kazeem Raimi and Mr. Ernest Ebi.
▪ On 7 July 2022, the Company incorporated a subsidiary, Turnkey Drilling Services Limited. The company was
incorporated for the purpose of drilling chemicals, material supply, directional drilling, drilling support services and
exploration services. The percentage ownership of the Company is 100%.
3. Summary of significant accounting policies
3.1 Introduction to summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements.
These accounting policies have been applied to all the years presented, unless otherwise stated.
3.2 Basis of preparation

The financial statements for the year ended 31 December 2022 have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and interpretations issued by the IFRS Interpretations Committee (IFRS IC). The
financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). Additional
information required by National regulations is included where appropriate.

The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of
financial position, the statement of changes in equity, the statement of cash flows and the notes to the financial statements.
The financial statements have been prepared under the going concern assumption and historical cost convention, except
for contingent liability and consideration, and defined benefit plans – plan assets measured at fair value. The financial
statements are presented in Nigerian Naira and United States Dollars, and all values are rounded to the nearest million
(₦’million) and thousand ($’000) respectively, except when otherwise indicated.
Nothing has come to the attention of the directors to indicate that the Company will not remain a going concern for at least
twelve months from the date of this statement.
3.3 New and amended standards adopted by the Company

The following standards and amendments became effective for annual periods beginning on or after 1 January 2022. The
Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
c) Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid
because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be
received under it.
The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include
costs that relate directly to a contract to provide goods or services include both incremental costs (e.g., the costs of direct
labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used
to fulfil the contract as well as costs of contract management and supervision). General and administrative costs do not
relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.
In accordance with the transitional provisions, the Company applies the amendments to contracts for which it has not yet
fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments (the date
of initial application) and has not restated its comparative information.
d) Reference to the Conceptual Framework – Amendments to IFRS 3

The amendments replace a reference to a previous version of the IASB’s Conceptual Framework with a reference to the
current version issued in March 2018 without significantly changing its requirements.
The amendments add an exception to the recognition principle of IFRS 3 Business Combinations to avoid the issue of
potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37
Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires
entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether
a present obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that
contingent assets do not qualify for recognition at the acquisition date.
These amendments had no impact on the separate financial statements of the Company as there were no contingent
assets, liabilities and contingent liabilities within the scope of these amendments arisen during the period.
e) Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds
of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and
the costs of producing those items, in profit or loss.
These amendments had no impact on the separate financial statements of the Company as there were no sales of such
items produced by property, plant and equipment made available for use on or after the beginning of the earliest period
presented.
f) IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial
liability are substantially different from the terms of the original financial liability. These fees include only those paid or
received between the borrower and the lender, including fees paid or received by either the borrower or lender on the
other’s behalf. There is no similar amendment proposed for IAS 39 Financial Instruments: Recognition and Measurement.
These amendments had no impact on separate financial statements of the Company as there were no modifications of the
Company’s financial instruments during the period.
3.4 Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
the Company’s interim financial statements are disclosed below. The Company intends to adopt these new and amended
standards and interpretations, if applicable, when they become effective. Details of these new standards and interpretations
are set out below:
▪ IFRS 17 Insurance Contracts - Effective for annual periods beginning on or after 1 January 2023
▪ Amendments to IAS 1: Classification of Liabilities as Current or Non-current - Effective for annual periods beginning on
or after 1 January 2024
▪ Amendments to IAS 8 Accounting Policies and Accounting Estimates: Definition of Accounting Estimates - Effective
date for annual periods beginning on or after 1 January 2023
▪ Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2- Effective date for annual
periods beginning on or after 1 January 2023
▪ Amendments regarding deferred tax on leases and decommissioning obligations - Effective date for annual periods
beginning on or after 1 January 2023.
▪ IFRS 16 amended for lease liability measurement in sale and leaseback – Effective date for annual periods beginning
on or after January 2024.
3.5 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which
the Company operates (‘the functional currency’), which is the US dollar. The financial statements are presented in Nigerian
Naira and the US Dollars.
The Company has chosen to show both presentation currencies and this is allowable by the regulator.
Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end are generally recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance
costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within
other income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported
as part of the fair value gain or loss or other comprehensive income depending on where fair value gain or loss is reported.
3.6 Joint arrangements

Under IFRS 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement. The company accounts for Interest in the joint venture at cost.
3.7 Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses.
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the
asset into operation, the initial estimate of any decommissioning obligation and, for qualifying assets, borrowing costs. The
purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to
acquire the asset. Where parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection
costs and overhaul costs. Where an asset or part of an asset that was separately depreciated and is now written off is
replaced and it is probable that future economic benefits associated with the item will flow to the entity, the expenditure is
capitalised. Inspection costs associated with major maintenance programs are capitalised and amortised over the period
to the next inspection. Overhaul costs for major maintenance programmes are capitalised as incurred as long as these
costs increase the efficiency of the unit or extend the useful life of the asset. All other maintenance costs are expensed as
incurred.
Depreciation

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Depreciation
commences when an asset is available for use. The depreciation rate for each class is as follows:
Plant and machinery 20%
Motor vehicles 25%-30%
Office furniture and IT equipment 10%-33.33%
Building 4%
Land -
Intangible assets 5%
Leasehold improvements Over the unexpired portion of the lease
The expected useful lives and residual values of property, plant and equipment are reviewed on an annual basis and, if
necessary, changes in useful lives are accounted for prospectively.
Gains or losses on disposal of property, plant and equipment are determined as the difference between disposal proceeds
and carrying amount of the disposed assets. These gains or losses are included in profit or loss.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e.,
at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any
gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.
3.8 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. These costs may
arise from; specific borrowings used for the purpose of financing the construction of a qualifying asset, and those that arise
from general borrowings that would have been avoided if the expenditure on the qualifying asset had not been made. The
general borrowing costs attributable to an asset’s construction is calculated by reference to the weighted average cost of
general borrowings that are outstanding during the period.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on the qualifying
assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.
3.9 Finance income and costs
Finance income
Finance income is recognised in the statement of profit or loss as it accrues using the effective interest rate (EIR), which
is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the amortised cost of the financial instrument. The determination of
finance income considers all contractual terms of the financial instrument as well as any fees or incremental costs that are
directly attributable to the instrument and are an integral part of the effective interest rate (EIR), but not future credit losses.
Finance cost
Finance costs includes borrowing costs, interest expense calculated using the effective interest rate method, finance
charges in respect of lease liabilities, the unwinding of the effect of discounting provisions, and the amortisation of discounts
and premiums on debt instruments that are liabilities.
3.10 Impairment of non-financial assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently. Other non–financial assets are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. Individual assets are grouped for impairment assessment

purposes at the lowest level at which there are identifiable cash flows that are largely independent of the cash flows of
other groups of assets. This should be at a level not higher than an operating segment.
If any such indication of impairment exists or when annual impairment testing for an asset group is required, the entity
makes an estimate of its recoverable amount. Such indicators include changes in the Company’s business plans, changes
in commodity prices, evidence of physical damage and, for oil and gas properties, significant downward revisions of
estimated recoverable volumes or increases in estimated future development expenditure.
The recoverable amount is the higher of an asset’s fair value less costs of disposal (‘FVLCD’) and value in use (‘VIU’). The
recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or group of assets, in which case, the asset is tested as part of a larger cash
generating unit to which it belongs. Where the carrying amount of an asset group exceeds its recoverable amount, the
asset group is considered impaired and is written down to its recoverable amount.
Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.
In calculating VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset/CGU. In determining
FVLCD, recent market transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.
3.11 Cash and cash equivalents

Cash and cash equivalents in the statement of cash flows comprise cash at banks and at hand and short-term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
3.12 Financial instruments

IFRS 9 provides guidance on the recognition, classification and measurement of financial assets and financial liabilities;
derecognition of financial instruments; impairment of financial assets and hedge accounting. IFRS 9 also significantly
amends other standards dealing with financial instruments such as IFRS 7 Financial Instruments: Disclosures.
a) Classification and measurement
Financial assets
It is the Company’s policy to initially recognise financial assets at fair value plus transaction costs, except in the case of
financial assets recorded at fair value through profit or loss which are expensed in profit or loss.
Classification and subsequent measurement are dependent on the Company’s business model for managing the asset
and the cashflow characteristics of the asset. On this basis, the Company may classify its financial instruments at amortised
cost, fair value through profit or loss and at fair value through other comprehensive income.
All the Company’s financial assets as at 31 December 2022 satisfy the conditions for classification at amortised cost under
IFRS 9 except for derivatives which are reclassified at fair value through profit or loss.
The Company’s financial assets include intercompany receivables, other receivables, cash and cash equivalents. They
are included in current assets, except for maturities greater than 12 months after the reporting date. Interest income from
these assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition
is recognised directly in profit or loss and presented in finance income/cost.
Financial liabilities of the Company are classified and measured at fair value on initial recognition and subsequently at
amortised cost net of directly attributable transaction costs, except for derivatives which are classified and subsequently
recognised at fair value through profit or loss.
Fair value gains or losses for financial liabilities designated at fair value through profit or loss are accounted for in profit or
loss except for the amount of change that is attributable to changes in the Company’s own credit risk which is presented
in other comprehensive income. The remaining amount of change in the fair value of the liability is presented in profit or
loss. The Company’s financial liabilities include trade and other payables.
Recognition of impairment provisions under IFRS 9 is based on the expected credit loss (ECL) model. The ECL model is
applicable to financial assets classified at amortised cost and contract assets under IFRS 15: Revenue from Contracts with
Customers. The measurement of ECL reflects an unbiased and probability-weighted amount that is determined by

evaluating a range of possible outcomes, time value of money and reasonable and supportable information that is available
without undue cost or effort at the reporting date, about past events, current conditions and forecasts of future economic
conditions.
The Company applies the simplified approach or the three-stage general approach to determine impairment of receivables
depending on their respective nature.
The simplified approach requires expected lifetime losses to be recognised from initial recognition of the receivables. This
involves determining the expected loss rates using a provision matrix that is based on the Company’s historical default
rates observed over the expected life of the receivable and adjusted forward-looking estimates. This is then applied to the
gross carrying amount of the receivable to arrive at the loss allowance for the period.
The three-stage approach assesses impairment based on changes in credit risk since initial recognition using the past due
criterion and other qualitative indicators such as increase in political concerns or other macroeconomic factors and the risk
of legal action, sanction or other regulatory penalties that may impair future financial performance. Financial assets
classified as stage 1 have their ECL measured as a proportion of their lifetime ECL that results from possible default events
that can occur within one year, while assets in stage 2 or 3 have their ECL measured on a lifetime basis.
Under the three-stage approach, the ECL is determined by projecting the probability of default (PD), loss given default
(LGD) and exposure at default (EAD) for each ageing bucket and for each individual exposure. The PD is based on default
rates determined by external rating agencies for the counterparties. The LGD is determined based on management’s
estimate of expected cash recoveries after considering the historical pattern of the receivable, and it assesses the portion
of the outstanding receivable that is deemed to be irrecoverable at the reporting period. The EAD is the total amount of
outstanding receivable at the reporting period. These three components are multiplied together and adjusted for forward
looking information, such as the gross domestic product (GDP) in Nigeria and crude oil prices, to arrive at an ECL which
is then discounted back to the reporting date and summed. The discount rate used in the ECL calculation is the original
effective interest rate or an approximation thereof.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
related financial assets and the amount of the loss is recognised in profit or loss.
c) Significant increase in credit risk and default definition
The Company assesses the credit risk of its financial assets based on the information obtained during periodic review of
publicly available information, industry trends and payment records. Based on the analysis of the information provided, the
Company identifies the assets that require close monitoring.
Furthermore, financial assets that have been identified to be more than 30 days past due on contractual payments are
assessed to have experienced significant increase in credit risk. These assets are grouped as part of Stage 2 financial
assets where the three-stage approach is applied.
In line with the Company’s credit risk management practices, a financial asset is defined to be in default when contractual
payments have not been received at least 90 days after the contractual payment period. Subsequent to default, the
Company carries out active recovery strategies to recover all outstanding payments due on receivables. Where the
Company determines that there are no realistic prospects of recovery, the financial asset and any related loss allowance
is written off either partially or in full.
d) Write off policy
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has
concluded that there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of
recovery include:
▪ ceasing enforcement activity and;
▪ where the Company's recovery method is foreclosing on collateral and the value of the collateral is such that there is
no reasonable expectation of recovering in full.
The Company may write-off financial assets that are still subject to enforcement activity. The outstanding contractual
amounts of such assets written off during the year ended 31 December 2022 was nil, (2021: nil). The Company seeks to
recover amounts it its legally owed in full but which have been partially written off due to no reasonable expectation of full
recovery.
e) Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire
or when it transfers the financial asset and the transfer qualifies for derecognition. Gains or losses on derecognition of
financial assets are recognised as finance income/cost.

The Company derecognises a financial liability when it is extinguished i.e. when the obligation specified in the contract is
discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised immediately in the statement of profit or loss.
f) Modification
When the contractual cash flows of a financial instrument are renegotiated or otherwise modified and the renegotiation or
modification does not result in the derecognition of that financial instrument, the Company recalculates the gross carrying
amount of the financial instrument and recognises a modification gain or loss immediately within finance income/(cost)-net
at the date of the modification. The gross carrying amount of the financial instrument is recalculated as the present value
of the renegotiated or modified contractual cash flows that are discounted at the financial instrument’s original effective
interest rate.
g) Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when and only
when there is legally enforceable right to offset the recognised amount, and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.
The legally enforceable right is not contingent on future events and is enforceable in the normal course of business, and
in the event of default, insolvency or bankruptcy of the Company or the counterparty.
h) Fair value of financial instruments
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When available, the Company measures the fair value of an
instrument using quoted prices in an active market for that instrument. A market is regarded as active if quoted prices are
readily available and represent actual and regularly occurring market transactions on an arm’s length basis.
If a market for a financial instrument is not active, the Company establishes fair value using valuation techniques. Valuation
techniques include using recent arm’s length transactions between knowledgeable, willing parties (if available), reference
to the current fair value of other instruments that are substantially the same, and discounted cash flow analysis. The chosen
valuation technique makes maximum use of market inputs, relies as little as possible on estimates specific to the Company,
incorporates all factors that market participants would consider in setting a price, and is consistent with accepted economic
methodologies for pricing financial instruments.
Inputs to valuation techniques reasonably represent market expectations and measure the risk-return factors inherent in
the financial instrument. The Company calibrates valuation techniques and tests them for validity using prices from
observable current market transactions in the same instrument or based on other available observable market data.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price – i.e. the fair value
of the consideration given or received. However, in some cases, the fair value of a financial instrument on initial recognition
may be different to its transaction price. If such fair value is evidenced by comparison with other observable current market
transactions in the same instrument (without modification or repackaging) or based on a valuation technique whose
variables include only data from observable markets, then the difference is recognised in the income statement on initial
recognition of the instrument. In other cases, the difference is not recognised in the income statement immediately but is
recognised over the life of the instrument on an appropriate basis or when the instrument is redeemed, transferred or sold,
or the fair value becomes observable.
3.13 Share capital

On issue of ordinary shares any consideration received net of any directly attributable transaction costs is included in
equity. Issued share capital has been translated at the exchange rate prevailing at the date of the transaction and is not
retranslated subsequent to initial recognition.
3.14 Earnings per share and dividends
Basic EPS
Basic earnings per share is calculated on the Company’s profit or loss after taxation and based on the weighted average
of issued and fully paid ordinary shares at the end of the year.
Diluted EPS

Diluted EPS is calculated by dividing the profit or loss after taxation by the weighted average number of ordinary shares
outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of
all the dilutive potential ordinary shares (after adjusting for outstanding share options arising from the share-based payment
scheme) into ordinary shares.
Dividend
Dividends on ordinary shares are recognised as a liability in the period in which they are approved.
3.15 Post-employment benefits
Defined contribution scheme

The Company contributes to a defined contribution scheme for its employees in compliance with the provisions of the
Pension Reform Act 2014. The scheme is fully funded and is managed by licensed Pension Fund Administrators.
Membership of the scheme is automatic upon commencement of duties at the Company. The Company’s contributions to
the defined contribution scheme are charged to the profit and loss account in the year to which they relate.
Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for
the termination of employment. The Company operates a defined contribution plan, and it is accounted for based on IAS
19 Employee benefits.
Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate
entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient
assets to pay all employee benefits relating to employee service in the current and prior periods. Under defined contribution
plans the entity’s legal or constructive obligation is limited to the amount that it agrees to contribute to the fund.
Thus, the amount of the post-employment benefits received by the employee is determined by the amount of contributions
paid by an entity (and perhaps also the employee) to a post-employment benefit plan or to an insurance company, together
with investment returns arising from the contributions. In consequence, actuarial risk (that benefits will be less than
expected) and investment risk (that assets invested will be insufficient to meet expected benefits) fall, in substance, on the
employee.
3.16 Provisions
Provisions are recognised when (i) the Company has a present legal or constructive obligation as a result of past events;
(ii) it is probable that an outflow of economic resources will be required to settle the obligation as a whole; and (iii) the
amount can be reliably estimated. Provisions are not recognised for future operating losses.
In measuring the provision:
▪ risks and uncertainties are taken into account;
▪ the provisions are discounted (where the effects of the time value of money is considered to be material) using a pre-
tax rate that is reflective of current market assessments of the time value of money and the risk specific to the liability;
▪ when discounting is used, the increase of the provision over time is recognised as interest expense;
▪ future events such as changes in law and technology, are taken into account where there is subjective audit evidence
that they will occur; and
▪ gains from expected disposal of assets are not taken into account, even if the expected disposal is closely linked to the
event giving rise to the provision.
▪ Decommissioning
Liabilities for decommissioning costs are recognised as a result of the constructive obligation of past practice in the oil and
gas industry, when it is probable that an outflow of economic resources will be required to settle the liability and a reliable
estimate can be made. The estimated costs, based on current requirements, technology and price levels, prevailing at the
reporting date, are computed based on the latest assumptions as to the scope and method of abandonment.
Provisions are measured at the present value of management’s best estimates of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognised as a finance cost. The corresponding amount is capitalised as
part of the oil and gas properties and is amortised on a unit-of-production basis as part of the depreciation, depletion and
amortisation charge. Any adjustment arising from the estimated cost of the restoration and abandonment cost is capitalised,

while the charge arising from the accretion of the discount applied to the expected expenditure is treated as a component
of finance costs.
If the change in estimate results in an increase in the decommissioning provision and, therefore, an addition to the carrying
value of the asset, the Company considers whether this is an indication of impairment of the asset as a whole, and if so,
tests for impairment in accordance with IAS 36. If, for mature fields, the revised oil and gas assets net of decommissioning
provisions exceed the recoverable value, that portion of the increase is charged directly to expense.
3.17 Income taxation
iv. Current income tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses. The current income tax charge is calculated based on the tax laws enacted
or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries and
associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where
appropriate, based on amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses. Deferred tax assets and liabilities are offset where there is a legally enforceable right to
offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised
in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The Company examines where there is an uncertainty regarding the treatment of an item, including taxable profit or loss,
the tax bases of assets and liabilities, tax losses and credits and tax rates. It considers each uncertain tax treatment
separately, depending on which approach better predicts the resolution of the uncertainty. The factors it considers include:
▪ how it prepares and supports the tax treatment; and
▪ the approach that it expects the tax authority to take during an examination.
If the Company concludes that it is probable that the tax authority will accept an uncertain tax treatment that has been
taken or is expected to be taken on a tax return, it determines the accounting for income taxes consistently with that tax
treatment. If it concludes that it is not probable that the treatment will be accepted, it reflects the effect of the uncertainty
in its income tax accounting in the period in which that determination is made (for example, by recognising an additional
tax liability or applying a higher tax rate).
The Company measures the impact of the uncertainty using methods that best predicts the resolution of the uncertainty.
The Company uses the most likely method where there are two possible outcomes, and the expected value method when
there are a range of possible outcomes.
The Company assumes that the tax authority with the right to examine and challenge tax treatments will examine those
treatments and have full knowledge of all related information. As a result, it does not consider detection risk in the
recognition and measurement of uncertain tax treatments. The Company applies consistent judgements and estimates on
current and deferred taxes. Changes in tax laws or the presence of new tax information by the tax authority is treated as a
change in estimate in line with IAS 8 - Accounting policies, changes in accounting estimates and errors.
Judgements and estimates made to recognise and measure the effect of uncertain tax treatments are reassessed
whenever circumstances change or when there is new information that affects those judgements. New information might
include actions by the tax authority, evidence that the tax authority has taken a particular position in connection with a
similar item, or the expiry of the tax authority’s right to examine a particular tax treatment. The absence of any comment
from the tax authority is unlikely to be, in isolation, a change in circumstances or new information that would lead to a
change in estimate.
3.18 Share based payments

Employees (including senior executives) of the Company receive remuneration in the form of share-based payments,
whereby employees render services as consideration for equity instruments (equity-settled transactions).
vii. Equity-settled transactions

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model.
That cost is recognised in employee benefits expense together with a corresponding increase in equity (share-based
payment reserve), over the period in which the service and, where applicable, the performance conditions are fulfilled (the
vesting period). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting
date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity
instruments that will ultimately vest. The expense or credit in profit or loss for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
Service and non-market performance conditions are not taken into account when determining the grant date and for fair
value of awards, but the likelihood of the conditions being met is assessed as part of the Company’s best estimate of the
number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date
fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be
non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate
expensing of an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or service
conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as
vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or
service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognised
is the grant date fair value of the unmodified award, provided the original terms of the award are met. An additional expense,
measured as at the date of modification, is recognised for any modification that increases the total fair value of the share-
based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by
the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The
dilutive effect of outstanding awards is reflected as additional share dilution in the computation of diluted earnings per
share.
4. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s historical financial information requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
4.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
viii. Share-based payment reserve

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model,
which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate
inputs to the valuation model including the expected life of the share award or appreciation right, volatility and dividend
yield and making assumptions about them. The Company measures the fair value of equity-settled transactions with
employees at the grant date. The assumptions and models used for estimating fair value for share-based payment
transactions are disclosed in Note 21.4.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. Such estimates and assumptions are continually evaluated and are
based on historical experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
The Company recognises depreciation on other property, plant and equipment on a straight-line basis in order to write-off
the cost of the asset over its expected useful life. The economic life of an asset is determined based on existing wear and
tear, economic and technical ageing, legal and other limits on the use of the asset, and obsolescence. If some of these

factors were to deteriorate materially, impairing the ability of the asset to generate future cash flow, the Company may
accelerate depreciation charges to reflect the remaining useful life of the asset or record an impairment loss.
5. IAS 8 – Accounting policies, changes in accounting estimates and errors

Certain comparative amounts in the statement of profit and loss and other comprehensive income have been restated, as
a result of the correction of a prior period error.
5.1 Correction of errors

The Company has made a number of share-based awards under incentive plans since its IPO in 2014. The shares are
granted to the employees of both the parent and subsidiary companies. During the prior periods, share based payments
relating to employees in other subsidiaries were previously recognised in the books of the parent company as share-based
expenses rather than investment in subsidiaries. The error has been corrected by restating each of the affected financial
statement line items for the period 2020 and 2021 by reclassifying share-based payments for the prior period from retained
earnings to investment in subsidiaries.
Impact on equity (increase/(decrease) in equity)

31 Dec 2021 1 Jan 2021 31 Dec 2021 1 Jan 2021
Investment in subsidiaries 1,110 1,938 2,697 4,708
Total assets 1,110 1,938 2,697 4,708
Impact on equity 1,110 1,938 2,697 4,708
Impact on statement of profit or loss (increase/(decrease) in profit)
Restated Restated
31 Dec 2021 31 Dec 2021
₦ million ₦’000
General and administrative expenses (1,110) (2,697)
(1,110) (2,697)
6. Financial risk management
6.1 Financial risk factors

The Company’s activities expose it to a variety of financial risks such as market risk (foreign exchange risk), credit risk and
liquidity risk. The Company’s risk management programme focuses on the unpredictability of financial markets and seeks
to minimise potential adverse effects on the Company’s financial performance.
Risk management is carried out by the treasury department under policies approved by the Board of Directors. The Board
provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, credit risk and investment of excess liquidity.
Risk Exposure arising from Measurement Management

Future commercial transactions Match and settle foreign
Market risk – foreign Recognised financial assets and Cash flow forecasting denominated cash inflows
exchange liabilities not denominated in US Sensitivity analysis with foreign denominated
dollars. cash outflows.
Intercompany receivables, cash and Aging analysis Diversification of bank
Credit risk
cash equivalents. Credit ratings deposits and credit limits.
Availability of committed
Rolling cash flow
Liquidity risk Trade and other payables credit lines and borrowing
forecasts
facilities

6.1.1 Foreign exchange risk
The Company has transactional currency exposures that arise from sales or purchases in currencies other than the
respective functional currency. The Company is exposed to exchange rate risk to the extent that balances and transactions
are denominated in a currency other than the US dollar.
The Company holds the majority of its bank balances equivalents in US dollar. However, the Company does maintain
deposits in Naira in order to fund ongoing general and administrative activities and other expenditure incurred in this
currency. Other monetary assets and liabilities which give rise to foreign exchange risk include trade and other receivables,
trade and other payables.
The following table demonstrates the carrying value of monetary assets and liabilities (denominated in Naira) exposed to
foreign exchange risks at the reporting date:
2022 2021 2022 2021

Financial assets
Trade and other receivables 710 415 1,587 1,009
48,831 63,561 109,209 154,303
Trade and other payables (12,066) (96) (26,986) (234)
Net exposure to foreign exchange risk 36,765 63,465 82,223 154,069
The following table demonstrates the carrying value of monetary assets and liabilities exposed to foreign exchange risks
for pound exposures at the reporting date:
2022 2021 2022 2021

Financial assets
Cash and cash equivalents 628 270 1,404 656
Trade and other receivables 2,685 - 6,006 -
3,313 270 7,410 656
Sensitivity to foreign exchange risk is based on the Company’s net exposure to foreign exchange risk due to Naira and
pound denominated balances. If the Naira strengthens or weakens by the following thresholds, the impact is as shown in
the table below:
Effect on other
components Effect on other
Effect on profit of equity Effect on profit components of
before tax before tax before tax equity before tax
2022 2022 2022 2022
Increase/decrease in foreign exchange risk

+10% (3,342) - (7,475) -
-10% 4,085 - 9,136 -

Effect on other
2021 2021 2021 2021

+5% (3,022) - (7,337) -
-5% 3,340 - 8,109 -
If the Pound strengthens or weakens by the following thresholds, the impact is as shown in the table below:
Effect on other
2022 2022 2022 2022

+10% (301) - (674) -
-10% 368 - 823 -
Effect on other
2021 2021 2021 2021

+5% (13) - (31) -
-5% 14 - 35 -
6.1.2 Credit risk

Credit risk refers to the risk of a counterparty defaulting on its contractual obligations resulting in financial loss to the
Company. Credit risk arises from cash and intercompany receivables.
f) Risk management
The credit risk on cash and cash equivalents is managed through the diversification of banks in which cash and cash
equivalents are held. This risk on cash is limited because the majority of deposits are with banks that have an acceptable
credit rating assigned by an international credit agency. The Company’s maximum exposure to credit risk due to default of
the counterparty is equal to the carrying value of its financial assets. The maximum exposure to credit risk as at the
reporting date is:
2022 2021 2022 2021

Trade and other receivables (Gross) 722,339 520,423 1,615,501 1,263,378
Cash and cash equivalent (Gross) 69,312 75,450 155,016 183,162
Gross amount 791,651 595,873 1,770,517 1,446,540
Impairment reversal /(charge) of receivables 23 (383) 52 (930)
Net amount 791,674 595,490 1,770,569 1,445,610

g) Impairment of financial assets
The Company has two types of financial assets that are subject to IFRS 9’s expected credit loss model. The impairment
of receivables is disclosed in the table below.
▪ Cash and cash equivalents
▪ Intercompany receivables
Reconciliation of impairment on financial assets;
As at 1 January 2022 383 930
Decrease in provision for Intercompany receivables 18.2 (395) (930)

Increase in provision for ANOH receivables 18.4 22 52
Exchange difference 13 -
Impairment charge to the profit or loss (360) (878)
As at 31 December 2022 23 52
As at 1 January 2021 - -
Increase in provision for Intercompany receivables 19.2 372 930

Exchange difference 11 -
As at 31 December 2021 383 930
The parameters used to determine impairment for intercompany receivables are shown below. For all receivables
presented in the table, the respective 12-month Probability of Default (PD) equate the Lifetime PD for stage 2 as the
maximum contractual period over which the Company is exposed to credit risk arising from the receivables is less than 12
months.
Intercompany receivables Short-term fixed deposits

The 12-month sovereign cumulative
PD for base case, downturn and upturn The PD for base case, downturn and upturn is 4.11%,
Probability of
respectively is 4.11%, 4.32%, and 4.32% and 3.90% respectively for stage 1 and stage 2.
Default (PD)
3.90%, for stage 1 and stage 2. The The PD for stage 3 is 100%.
PD for stage 3 is 100%.
The 12-month LGD and lifetime LGD
were determined using Moody’s The 12-month LGD and lifetime LGD were determined
Loss Given Default
recovery rate and mapped based on using the average recovery rate for Moody’s senior
(LGD)
the priority rating of the receivable, for unsecured corporate bonds for emerging economies.
emerging economies.
Exposure at default The EAD is the maximum exposure of The EAD is the maximum exposure of the short-term
(EAD) the receivable to credit risk. fixed deposits to credit risk.
Macroeconomic The historical inflation and Brent oil The historical gross domestic product (GDP) growth
indicators price were used. rate in Nigeria and crude oil price were used.
20%, 50%, and 30%, was used as the
20%, 50% and 30% of historical GDP growth rate
Probability weights for the base, upturn and
observations fall within acceptable bounds, periods of
weightings downturn ECL modelling scenarios
boom and periods of downturn respectively.
respectively.

The Company considers both quantitative and qualitative indicators in classifying its receivables into the relevant stages
for impairment calculation.
Impairment of financial assets are recognised in three stages on an individual or collective basis as shown below:
▪ Stage 1: This stage includes financial assets that are less than 30 days past due (Performing).
▪ Stage 2: This stage includes financial assets that have been assessed to have experienced a significant increase in
credit risk using the days past due criteria (i.e. the outstanding receivables amounts are more than 30 days past due
but less than 90 days past due) and other qualitative indicators such as the increase in political risk concerns or other
micro-economic factors and the risk of legal action, sanction or other regulatory penalties that may impair future financial
performance.
▪ Stage 3: This stage includes financial assets that have been assessed as being in default (i.e. receivables that are
more than 90 days past due) or that have a clear indication that the imposition of financial or legal penalties and/or
sanctions will make the full recovery of indebtedness highly improbable.
x. Cash and cash equivalent

Short term fixed deposits
The Company applies the IFRS 9 general model for measuring expected credit losses (ECL) which uses a three-stage
approach in recognising the expected loss allowance for cash and cash equivalents. The ECL was calculated as the
probability weighted estimate of the credit losses expected to occur over the contractual period of the facility after
considering macroeconomic indicators. Based on this assessment, they identified the expected credit loss to be nil as at
31 December 2022.
xi. Other cash and cash equivalents

The company assessed the other cash and cash equivalents to determine their expected credit losses. Based on this
assessment, they identified the expected credit loss to be nil as at 31 December 2022 (2021: nil). The assets are assessed
to be in stage 1.
Credit quality of cash and cash equivalents (including restricted cash)

The credit quality of the Company’s cash and cash equivalents is assessed based on external credit ratings (Fitch national
long-term ratings) as shown below:
2022 2021 2022 2021

Non-rated - - - -
BBB- 13,543 24,802 30,289 60,210
A 233 47 522 113
A+ 40,554 46,241 90,704 112,255
AA- 11,787 4,053 26,362 9,839
AA+ - - - -
AAA- - 3,614 - 8,773
AAA 3,192 - 7,139 -
Allowance for impairment during the year (75) - (167) -
xii. Intercompany receivables

Stage 1 Stage 2 Stage 3 Total
12-month Lifetime Lifetime
31 December 2022 ECL ECL ECL
Loss allowance - - - -


$’000 $’000 $’000 $’000
Gross Exposure at Default (EAD) 1,473,033 - - 1,473,033
Loss allowance - - - -
Net Exposure at Default (EAD) 1,473,033 - - 1,473,033

$’000 $’000 $’000 $’000
Gross Exposure at Default (EAD) 1,259,963 - - 1,259,963
Net Exposure at Default (EAD) 1,259,033 - - 1,259,033
xiii. Receivables from ANOH

Gross Exposure at Default (EAD) 894 - - 894

Net Exposure at Default (EAD) 871 - - 871

$’000 $’000 $’000 $’000
h) Maximum exposure to credit risk – financial instruments subject to impairment

The Company estimated the expected credit loss on Intercompany receivables and fixed deposits by applying the general
model. The gross carrying amount of financial assets represents the Company’s maximum exposure to credit risks on
these assets.
All financial assets impaired using the General model (Intercompany and Fixed deposits) are graded under the standard
monitoring credit grade (rated B under Standard and Poor’s unmodified ratings) and are classified under Stage 1.
i) Roll forward movement in loss allowance

The loss allowance recognised in the period is impacted by a variety of factors, as described below:
▪ Additional allowances for new financial instruments recognised during the period, as well as releases for financial
instruments derecognised in the period;
▪ Discount unwind within ECL due to passage of time, as ECL is measured on a present value basis;
▪ Foreign exchange retranslation for assets dominated in foreign currencies and other movements; and Financial assets
derecognised during the period and write-off of receivables and allowances related to assets.
j) Estimation uncertainty in measuring impairment loss

The table below shows information on the sensitivity of the carrying amounts of the Company’s financial assets to the
methods, assumptions and estimates used in calculating impairment losses on those financial assets at the end of the
reporting period. These methods, assumptions and estimates have a significant risk of causing material adjustments to the
carrying amounts of the Company’s financial assets.
xiv. Expected cashflow recoverable

The table below demonstrates the sensitivity of the Company’s profit before tax to a 20% change in the expected cashflows
from financial assets, with all other variables held constant:

before tax profit before tax before tax profit before tax
2022 2022 2022 2022
Increase/decrease in estimated cash flows

+20% 38 - 85 -
-20% (38) - (85) -

xv. Significant unobservable inputs
The table below demonstrates the sensitivity of the Company’s profit before tax to movements in the probability of default
(PD) and loss given default (LGD) for financial assets, with all other variables held constant:

2022 2022 2022 2022

+10% (56) - (132) -
-10% 56 - 132 -
The table below demonstrates the sensitivity of the Company’s profit before tax to movements in probabilities of default,
with all other variables held constant

2022 2022 2022 2022

+10% (35) - (82) -
-10% 35 - 82 -
The table below demonstrates the sensitivity of the Company’s profit before tax to movements in the forward-looking
macroeconomic indicators, with all other variables held constant:

2022 2022 2022 2022

+10% (41) - (97) -
-10% 41 - 97 -
6.1.3 Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company
manages liquidity risk by ensuring that enough funds are available to meet its commitments as they fall due.
The Company uses both long-term and short-term cash flow projections to monitor funding requirements for activities and
to ensure there are enough cash resources to meet operational needs. Cash flow projections take into consideration the
Company’s debt financing plans and covenant compliance. Surplus cash held is transferred to the treasury department
which invests in interest bearing current accounts and time deposits.
The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with
agreed maturity periods. The table has been drawn based on the undiscounted cash flows of the financial liabilities based
on the earliest date on which the Company can be required to pay.
The table below represents the trade and other payable for 2022.


31 December 2022
Trade and other payables 1,032,061 - - - 1,032,061
Total 1,032,061 - - - 1,032,061

% $’000 $’000 $’000 $’000 $’000
31 December 2022
Trade and other payables 2,308,184 - - - 2,308,184
Total 2,308,184 - - - 2,308,184
6.1.4 Fair value measurements

Set out below is a comparison by category of carrying amounts and fair value of all financial instruments:

2022 2021 2022 2021
Trade and other receivables 722,340 520,040 722,340 520,040
787,253 595,490 787,253 595,490

Trade and other payables 1,032,061 776,027 1,032,061 776,027
1,032,061 776,027 1,032,061 776,027

2022 2021 2022 2021
$’000 $’000 $’000 $’000
Trade and other receivables 1,615,501 1,262,448 1,615,501 1,262,448
1,760,686 1,445,610 1,760,686 1,445,610

Trade and other payables 2,308,184 1,883,885 2,308,184 1,883,885
2,308,184 1,883,885 2,308,184 1,883,885
Trade and other payables (exclude non-financial liabilities such as provisions, taxes, pension and other non-contractual
payables), trade and other receivables (excluding prepayments) and cash and cash equivalents are financial instruments
whose carrying amounts as per the financial statements approximate their fair values. This is mainly due to their short-
term nature.

6.1.5 Fair Value Hierarchy
As at the reporting period, the Company had classified its financial instruments into the three levels prescribed under the
accounting standards. These are all recurring fair value measurements. There were no transfers of financial instruments
between fair value hierarchy levels during the year.
▪ Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
▪ Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.
▪ Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
The fair value of the financial instruments is included at the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date.
The carrying amounts of the financial instruments are the same as their fair values.
6.2 Capital management

The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders, to maintain optimal capital structure and
reduce cost of capital. Consistent with others in the industry, the Company monitors capital based on the following gearing
ratio, net debt divided by total capital. Net debt is calculated as trade and other payables less cash and cash equivalents.
2022 2021 2022 2021

Trade and other payables 1,032,061 776,027 2,308,184 1,883,885
Less: cash and cash equivalents (64,913) (75,450) (145,185) (183,162)
Net debt 967,148 700,577 2,162,999 1,700,723
Total equity 725,194 705,864 1,621,899 1,713,547
Total capital 1,692,342 1,406,441 3,784,898 3,414,270
Net debt (net debt/total capital) ratio 57% 50% 57% 50%
Capital includes share capital, share premium, capital contribution and all other equity reserves.
7. Segment reporting
The Company have no operating or reportable segment.
8. Other loss
2022 2021 2022 2021
Unrealised foreign exchange loss (1,273) (4) (2,998) (10)
(1,273) (4) (2,998) (10)
9. General and administrative expenses

2022 Restated 2022 Restated

2021 2021
Depreciation (Note 15) 112 88 266 220
Professional and consulting fees 11,558 1,733 27,236 4,326
Directors’ emoluments (non-executive) 2,054 `1,844 4,842 4,604
Employee benefits (Note 10.1) 821 130 1,934 324
Flights and other travel costs 1,015 421 2,392 1,046
Other general expenses 3,046 2,012 7,183 5,018
18,606 6,228 43,853 15,538
Seplat Energy Plc Executive Directors’ emoluments for are borne by the other subsidiaries. Other general expenses relate
to costs such as office maintenance costs, telecommunication costs, logistics costs and others. Professional and consulting
fees increase is as a result of strategy related consultancy services and legal fees.
9.1 Salaries and employee related costs include the following:
Restated Restated
2022 2022
2021 2021
Basic salary 377 - 889 -
Other allowances 181 - 426 -
Share-based payment expenses (Note 21.4) 263 130 619 324
821 130 1,934 324
10. Impairment reversal/(losses) on financial assets
2022 2021 2022 2021

Impairment (reversal)/loss on financial assets – net (Note (360) 372 (878) 930
10.1)
Total impairment loss allowance (360) 372 (878) 930
10.1 Impairment reversal/(losses) on financial assets - net
2022 2021 2022 2021

Impairment reversal/(losses) on:
Receivables from ANOH 22 - 52 -
Intercompany receivables (395) 372 (930) 930
Exchange differences 13 - -
(360) 372 (878) 930
11. Finance income

2022 2021 2022 2021
Interest income 412 131 971 327
Finance income 412 131 971 327
Finance income represents interest on short-term fixed deposits.
12. Taxation
Deferred tax assets have not been recognised in respect of the following items because of the uncertainty around the
availability of future taxable profits against which the Company can use the benefits therefrom.
2022 2021 2022 2021

Unutilised capital allowance 523 29 1,170 70
Unrealised foreign exchange 1,438 684 3,215 1,661
Share based payment - 1,010 - 2,453
Tax losses - 2,827 - 6,862
Impairment loss of intercompany receivables - 115 - 279
Unrecognised deferred tax asset 1,961 4,665 4,385 11,325
13. Computation of cash generated from operations

Restated Restated
2022 2021 2022 2021
Loss before tax (19,107) (6,473) (45,002) (16,151)
Adjusted for:
Depreciation on property, plant and equipment 9 112 88 266 220
Interest income 11 (412) (131) (971) (327)
Impairment (loss)/gain on financial assets 10 (360) 372 (878) 930
Unrealised foreign exchange loss 8 1,273 4 2,998 10
Share based payment expenses 9.1 263 130 619 324
Changes in working capital: (excluding the effects of
exchange differences)
Trade and other receivables (93,234) (519,705) (219,700) (1,261,543)
Prepayments (37) (52) (87) (126)
Trade and other payables 180,059 558,077 424,299 1,354,785
Net cash from operating activities 68,557 32,310 161,544 78,122
14. Property, plant and equipment

Office
Furniture
Plant & Motor & IT Leasehold
machinery vehicle equipment improvements Total
Cost ₦ million ₦ million ₦ million ₦ million ₦ million

At 1 January 2022 17 349 - - 366
Additions - 211 78 186 475
Exchange difference 1 41 5 10 57
At 31 December 2022 18 601 83 196 898
Depreciation
At 1 January 2022 5 87 - - 92
Charge for the year 3 95 13 1 112
Exchange difference 1 12 1 - 14
At 31 December 2022 9 194 14 1 218
NBV
At 31 December 2022 9 407 69 195 680
Cost
At 1 January 2021 16 289 - - 305

Additions - 34 - - 34
Exchange difference 1 26 - - 27
At 31 December 2021 17 349 - - 366
Depreciation
At 1 January 2021 1 - - - 1
Charge for the year 3 85 - - 88
Exchange difference 1 2 - - 3
At 31 December 2021 5 87 - - 92
NBV
At 31 December 2021 12 262 - - 274
Plant & Motor Office Furniture Leasehold

machinery vehicle & IT equipment improvements Total
Cost $’000 $’000 $’000 $’000 $’000

At 1 January 2022 41 845 - - 886
Additions - 498 185 439 1,122
At 31 December 2022 41 1,343 185 439 2,008
Depreciation
At 1 January 2022 11 212 - - 223
Charge for the year 8 225 30 3 266
At 31 December 2022 19 437 30 3 489
NBV
At 31 December 2022 22 906 155 436 1,519
Cost
At 1 January 2021 41 761 - - 802

Additions - 85 - - 85
At 31 December 2021 41 846 - - 887
Depreciation
At 1 January 2021 3 - - - 3
Charge for the year 8 212 - - 220
At 31 December 2021 11 212 - - 223
NBV
At 31 December 2021 30 634 - - 664
15. Prepayments
2022 2021 2022 2021

Current ₦ million ₦ million $’000 $’000
Short term prepayments 97 54 218 131
97 54 218 131
15.1 Short term prepayments

Included in short term prepayment are prepaid service charge expenses for health insurance and motor insurance
premium.
16. Investment in subsidiaries

31 Dec 1 Jan 31 Dec 1 Jan 2021
2022 2021 2021 2022 2021
Newton Energy Limited 425 391 391 950 950 950
Seplat Energy UK Limited 23 21 21 50 50 50
Seplat East Onshore Limited 470 247 145 1,052 600 353
Seplat East Swamp Company Limited 14 13 13 32 32 32
Seplat Gas Company Limited 14 13 13 32 32 32
Eland Oil and Gas Limited 218,058 200,891 200,891 487,683 487,683 487,683
Seplat West Limited 651,986 597,219 596,211 1,458,157 1,451,041 1,448,591
Turnkey Drilling Limited 10 - - 23 - -
871,000 798,795 797,685 1,947,980 1,940,388 1,937,691
16.1 Interest in subsidiaries

Restated Restated Restated Restated Restated
As at 31 As at 31 As at 31 As at 31 1 Jan As at 31 As at 31 1 Jan
Country of
Dec 2022 Dec 2021 Dec 2022 Dec 2021 2021 Dec 2022 Dec 2021 2021
incorporatio
n & place of Percentage of
Carrying amount
Name of entity business ownership interest
% % ₦’million ₦’million ₦’million $’000 $’000 $’000

Newton
Nigeria 99.9 99.9 425 391 391 950 950 950
Energy Limited
Seplat Energy United
100 100 22 21 21 50 50 50
UK Limited Kingdom
Seplat East
Onshore Nigeria 99.9 99.9 470 247 145 1,052 600 353
Limited
Seplat East
Swamp
Nigeria 99.9 99.9 14 13 13 32 32 32
Company
Limited
Seplat Gas
Company Nigeria 99.9 99.9 14 13 13 32 32 32
Limited
Eland Oil and United
100 100 218,058 200,891 200,891 487,683 487,683 487,683
Gas Limited Kingdom
Seplat West
Nigeria 99.9 99.9 651,986 597,219 596,211 1,458,157 1,444,204 1,448,591
Limited
Turnkey
Nigeria 100 - 10 - - 23 - -
Drilling Limited
16.2 Reconciliation of investment in subsidiary
2022 2022
₦ million $’000
At 1 January 2022 798,795 1,940,388
Additional investment in subsidiaries – Share-based payment 3,385 7,569
Additional investment in subsidiary (Turnkey) 10 23
At 31 December 2022 871,000 1,947,980

31 Dec 1 Jan 2021 31 Dec 1 Jan 2021
2021 2021
At 1 January 2021 797,685 593,425 1,937,691 1,932,983
Correction of prior period error 1,110 1,938 2,697 4,708
Additional investment in subsidiary - - - -
Exchange difference - 202,322 - -
At 31 December 2021 798,795 797,685 1,940,388 1,937,691
17. Investment in Joint ventures

31 December 31 December 31 December 31 December
2022 2021 2022 2021
Cost 93,904 86,512 210,016 210,016

17.1 Reconciliation of investment in joint venture
31 December 31 December 31 December 31 December
2022 2021 2022 2021
As 1 January 86,512 79,806 210,016 210,016
At 31 December 93,904 86,512 210,016 210,016
Percentage of
Country of
ownership interest Carrying amount
incorporation
and place of As at 31 As at 31 As at 31 As at 31 As at 31 As at 31
Name of entity business Dec 2022 Dec 2021 Dec 2022 Dec 2021 Dec 2022 Dec 2021
% % ₦’million ₦’million $’000 $’000
ANOH Gas
Processing Nigeria 50 50 93,904 86,512 210,016 210,016
Company Limited
18. Trade and other receivables

2022 2021 2022 2021
Advances to suppliers 4,995 - 11,172 -
Advance for New Business 57,367 - 128,300 -
Intercompany receivables 658,639 518,634 1,473,033 1,259,033
Receivables from Joint Venture (ANOH) 871 974 1,947 2,365
Other receivables 468 432 1,049 1,050
722,340 520,040 1,615,501 1,262,448
Advances for new business include deposits of $128.3 million, ₦57.2 billion towards the acquisition of the entire share
capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware.
18.1 Reconciliation of intercompany receivables

2022 2021 2022 2021
Balance as at 1 January 519,017 313 1,259,963 824
Additions during the year 95,270 546,838 213,070 1,365,457
Receipts for the year - (42,578) - (106,318)
Gross carrying amount 658,639 519,017 1,473,033 1,259,963
Less: impairment allowance - (383) - (930)
Balance as at 31 December 658,639 518,634 1,473,033 1,259,033
18.2 Reconciliation of impairment allowance on intercompany receivables

2022 2021 2022 2021
Loss allowance as at 1 January 383 - 930 -
(Decrease)/Increase in loss allowance during the (395) 372 (930) 930
period
Loss allowance as at 31 December - 383 - 930
18.3 Reconciliation of receivables from joint venture (ANOH)

2022 2021 2022 2021
Balance as at 1 January 974 178 2,365 469
Additions during the year - 781 - 1,896
Receipts for the year (164) - (366) -
Gross carrying amount 894 974 1,999 2,365
Less: impairment allowance (23) - (52) -
Balance as at 31 December 871 974 1,947 2,365
18.4 Reconciliation of impairment allowance on receivables from joint venture (ANOH)

2022 2021 2022 2021
Loss allowance as at 1 January - - - -
Increase in loss allowance during the period 22 - 52 -

Exchange difference 1 - - -
Loss allowance as at 31 December 23 - 52 -
19. Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise of cash at bank, cash on hand and short-term
deposits with a maturity of three months or less.
2022 2021 2022 2021

Short term fixed deposits 22,637 29,041 50,628 70,499
Cash at bank 42,350 46,409 94,724 112,663
Gross cash and cash equivalent 64,987 75,450 145,352 183,162
Loss allowance (74) - (167) -
Net Cash and cash equivalents 64,913 75,450 145,185 183,162
19.1 Restricted cash
2022 2021 2022 2021


Restricted cash 4,321 3,307 9,664 8,028
4,321 3,307 9,664 8,028
19.2 Movement in restricted cash
2022 2021 2022 2021

Increase/(decrease) in restricted cash 694 (8,260) 1,636 (20,053)
694 (8,260) 1,636 (20,053)
Included in restricted cash, is a balance of $8 million (N3.6 billion) set aside in the Stamping Reserve account for the
revolving credit facility (RCF). The amount is to be used for the settlement of all fees and costs payable for the purposes
of stamping and registering the Security Documents at the stamp duties office and at the Corporate Affairs Commission
(CAC).
These amounts are subject to legal restrictions and are therefore not available for general use by the Company.
20. Share capital

20.1 Authorised and issued share capital
2022 2021 2022 2021

Authorised ordinary share capital

588,444,561 ordinary shares denominated in
500 500 3,335 3,335
Naira of 50 kobo per share
Issued and fully paid

588,444,561 (2021: 584,035,845) issued shares
297 296 1,864 1,862
denominated in Naira of 50 kobo per share
Fully paid ordinary shares carry one vote per share and the right to dividends. There were no restrictions on the Company’s
share capital.
20.2 Movement in share capital and other reserves
Issued
Number of share Share Share based Treasury
shares capital premium payment reserve shares Total
Shares ₦’million ₦’million ₦’million ₦’million ₦’million
Opening balance as at 1 January 2022 584,035,845 296 90,383 4,914 (2,025) 93,568
Share based payments - - - 263 - 263
Additional investment in subsidiary – Share -
- - 3,384 - 3,384
based payment
Vested shares 4,719,809 2 2,450 (2,452) - -

Closing balance as at
588,444,561 297 91,317 6,108 (2,025) 95,697
31 December 2022
Issued Share based

Shares $’000 $’000 $’000 $’000 $’000
Opening balance as at 1 January 2022 584,035,845 1,862 520,138 22,190 (4,915) 539,275
Share based payments - - - 619 - 619
Additional investment in subsidiary – Share - - - 7,569 - 7,569
based payment
Vested shares 4,719,809 5 5,480 (5,485) - -
Closing balance as at 31 December 2022 588,444,561 1,864 522,227 24,893 (4,915) 544,069
Shares repurchased for employees during the year of nil (2021: $4.9 million) relates to share buy-back programme for
Company’s Long-Term Incentive Plan. The programme commenced from 1 March 2021 and are held by the Trustees
under the Trust for the benefit of the Company’s employee beneficiaries covered under the Trust.
20.3 Share Premium
2022 2021 2022 2021

Share premium 91,317 90,383 522,227 520,138
Section 120.2 of Companies and Allied Matters Act, CAP C20, Laws of the Federation of Nigeria 2004 requires that where
a Company issues shares at premium (i.e., above the par value), the value of the premium should be transferred to share
premium.
During the year, an additional 4,719,809 shares vested with a fair value of $5.49 million. The excess of $5.48 million above
the nominal value of ordinary shares have been recognised in share premium.
20.4 Employee share-based payment scheme

As at 31 December 2022, the company had awarded 94,038,312 shares (2021: 73,966,540 shares) to certain employees
and senior executives in line with its share-based incentive scheme. Included in the share-based incentive schemes is one
additional scheme (2022 LTIP Scheme) awarded during the reporting period. During the reporting period, 7,821,418 shares
had vested out of which 3,101,609 shares were forfeited in relation to participants whose employment was terminated
during the vesting period. The average forfeiture rate due to failure to meet non-market vesting condition is 16.19% while
the average due to staff exit is 24.36%. The impact of applying the forfeiture rate of 25% on existing LTIP awards which
are yet to vest will result in a reduction of share-based compensation expense for the year by $3,531,176. The number of
shares that eventually vested during the year after the forfeiture and conditions above is 4,719,809 (Dec 2021: 5,736,761)
shares were vested.
xvi. Description of the awards valued

The Company has made a number of share-based awards under incentive plans since its IPO in 2014: IPO-related grants
to Executive and Non-Executive Directors, 2018/2020 deferred bonus awards and 2020 Long-term Incentive plan (‘LTIP’)
awards. Shares under these incentive plans were awarded at the IPO in April 2014, 2015, 2016, 2017,2018 and 2020
conditional on the Nigerian Stock Exchange (‘NSE’) approving the share delivery mechanism proposed by the Company.
A number of these awards have fully vested.

Seplat Deferred Bonus Award
25% of each Executive Director’s 2019 bonus (paid in 2020) has been deferred into shares and would be released in 2022
subject to continued employment over the vesting period. 2020 deferred bonus was approved by the Board and vested in
2022. No performance criteria are attached to this award. As a result, the fair value of these awards is calculated using
a Black Scholes model.
Long Term Incentive Plan (LTIP) awards

Under the LTIP Plan, shares are granted to management staff of the organisation at the end of every year. The shares
were granted to the employees at no cost. The shares vest (after 3 years) based on the following conditions.
▪ 25% vesting for median relative TSR performance rising to 100% for upper quartile performance on a straight-line
basis.
▪ Relative TSR vesting reduced by 75% if 60% and below of operational and technical bonus metrics are achieved, with
35% reduction if 70% of operational and technical bonus metrics are achieved and no reduction for 80% or above
achievement.
▪ If the Company outperforms the median TSR performance level with the LTIP exploration and production comparator
group.
The LTIP awards have been approved by the NSE.
The expense recognised for employee services received during the year is shown in the following table:
Restated Restated
2022 2021 2022 2021
Expense arising from equity-settled share-based payment transactions 263 130 619 324
The asset arising as a result of share-based payment expenses incurred on employees of subsidiaries during the year is
shown in the following table:
Restated Restated
2022 2021 2022 2021
Additional investment in subsidiaries – Share-based payment (Note 16.2) 3,385 1,110 7,569 2,696
There were no cancellations to the awards in 2022. The share awards granted to Executive Directors and confirmed
employees are summarised below:
Deemed Start of End of Vesting Number of

Scheme grant date Service Period service period status awards
Global Bonus Offer 4 November 2015 9 April 2014 9 April 2015 Fully 6,472,138
Non- Executive Shares 4 November 2015 9 April 2014 9 April 2015 Fully 793,650
2014 Deferred Bonus 14 December 2015 14 December 2015 21 April 2017 Fully 212,701
2015 Deferred Bonus 21 April 2016 21 April 2016 20 April 2018 Fully 247,610
21 December
2016 Long term incentive Plan 22 December 2016 22 December 2016 Fully 10,294,300
2019
2016 Deferred Bonus 24 November 2017 24 November 2017 20 April 2019 Fully 278,191
2017 Long term incentive Plan 24 November 2017 24 November 2017 20 April 2020 Fully 7,938,589

31 December
2017 Deferred Bonus 2 May 2018 2 May 2018 Fully 193,830
2019
2018 Long term incentive Plan 2 May 2018 2 May 2018 2 May 2021 Fully 6,936,599
31 December
2018 Deferred Bonus 2 May 2019 2 May 2019 Fully 341,069
2020
2019 Deferred Bonus 30 Apr 2020 30 Apr 2020 31 Dec 2021 Fully 214,499
2020 Long term incentive Plan 30 Apr 2020 30 Apr 2020 1 May 2023 Partially 10,828,156
2020 Long term incentive Plan 2 Dec 2020 2 Dec 2020 2 Dec 2023 Partially 1,110,057
2021 Long term incentive Plan 2 November 2021 2 November 2021 2 November 2024 Partially 12,995,688
2021 Long term incentive plan
10 March 2022 10 March 2022 2 November 2024 Partially 5,133,469
– Executives
31 December
2020 Deferred Bonus 10 March 2022 10 March 2022 Fully 172,586
2022
2022 Long term incentive plan 30 May 2022 30 May 2022 30 May 2025 Partially 13,811,252
31 December
2021 Deferred Bonus 10 March 2022 10 March 2022 Partially 439,908
2023
COO Sign on Bonus 4 August 2022 4 August 2022 1 July 2024 Partially 514,575
94,038,312
Share awards used in the calculation of diluted earnings per shares are based on the outstanding shares as at 31
December 2022.
2022 2022 2021 2021

Share award scheme (all awards) Number WAEP ₦ Number WAEP ₦
Granted during the year 25,036,212 442 1,145,053 415
Exercise during the year (4,719,809) (5,736,761)
2022 2022 2021 2021

Share award scheme (all awards) Number WAEP $ Number WAEP $
Granted during the year 25,036,212 1.10 1,145,053 1.04
The following table illustrates the number and weighted average exercise prices (‘WAEP’) of and movements in deferred
bonus scheme and long-term incentive plan during the year for each available scheme.
2022 2022 2021 2021

Deferred Bonus Scheme Number WAEP ₦ Number WAEP ₦
Outstanding at 1 January - - 86,151 509
Granted during the year 479,564 541 128,348 415
Exercised during the year (172,568) (214,499) -
Outstanding at 31 December 306,996 483 - -

2022 2022 2021 2021
Deferred Bonus Scheme Number WAEP $ Number WAEP $
Outstanding at 1 January - - 86,151 0.62
Granted during the year 479,564 1.21 128,348 1.04
Exercised during the year (172,568) (214,499) -
Forfeited during the year - - -
Outstanding at 31 December 306,996 1.08 - -
The fair value of the modified options was determined using the same models and principles as described in the table
below on the inputs to the models used for the scheme.
2022 2022 2021 2021

Long term incentive Plan (LTIP) Number WAEP ₦ Number WAEP ₦
Granted during the year 24,556,648 - 1,016,705 415
2022 2022 2021 2021
Long term incentive Plan (LTIP) Number WAEP $ Number WAEP $
Granted during the year 24,556,648 1,016,705 1.04
The shares are granted to the employees at no cost. The weighted average remaining contractual life for the share awards
outstanding as at 31 December 2022 range from 0.8 to 2.3 years (2021: 0.2 to 2.7 years).
The weighted average fair value of awards granted during the year range from ₦170 to ₦581 (2021: ₦415 to ₦442.32),
$0.38 to $1.30 (2021: $1.04 to $1.10).
The fair value at grant date is independently determined using the Monte Carlo Model which takes into account the exercise
price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield, the risk-free interest rate for the term of the option and the correlations and volatilities of the peer companies.
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any
expected changes to future volatility due to publicly available information.
The following table lists the inputs to the models used for the share awards outstanding in the respective plans for the year
ended 31 December 2022:
2021
2019 2020 2021 LTIP- 2022
LTIP LTIP LTIP Execs LTIP
Weighted average fair values at the measurement date
Dividend yield (%) 0.00% 0.00% 0.00% 0.00% 0.00%
Expected volatility (%) 35% 43% 51.68% 59.29% 59.86%

Risk–free interest rate (%) 0.76% 0.44% 0.31% 2.17% 2.53%
Expected life of share options 3.00 3.00 3.00 2.64% 3.00
Share price at grant date ($) 1.7 0.51 0.66 1.12 1.18
Share price at grant date (₦) 521.9 193.48 264.32 465.74 489.76
Model used Monte Carlo Monte Carlo Monte Carlo Monte Carlo Monte Carlo
20.5 Treasury shares

This relates to Share buy-back programme for Company’s Long-Term Incentive Plan. The programme commenced from
1 March 2021 and are held by the Trustees under the Trust for the benefit of the Company’s employee beneficiaries
covered under the Trust.
21. Capital contribution

In accordance with the Shareholders’ Agreement, the amount was used by the Company for working capital as was
required at the commencement of operations.
2022 2021 2022 2021

Capital contribution 5,932 5,932 40,000 40,000
22. Foreign currency translation reserve

Cumulative exchange difference arising from translation of the Company’s results and financial position into the
presentation currency and from translation of foreign subsidiary is taken to foreign currency translation reserve through
other comprehensive income.
23. Trade and other payables

2022 2021 2022 2021
Trade payable 13,103 - 29,304 -
Accruals and other payables 246 756 545 1,838
Intercompany payable 1,018,712 775,271 2,278,335 1,882,047
1,032,061 776,027 2,308,184 1,883,885
24. Loss per share (LPS)
Basic
Basic LPS is calculated on the Company’s profit after taxation attributable to the company and based on weighted average
number of issued and fully paid ordinary shares at the end of the year.
Diluted
Diluted LPS is calculated by dividing the profit after taxation attributable to the company by the weighted average number
of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued
on conversion of all the dilutive potential ordinary shares (arising from outstanding share awards in the share-based
payment scheme) into ordinary shares.
2022 2021 2022 2021

Loss for the year (19,107) (7,552) (45,002) (18,847)

Shares ‘000 Shares ‘000 Shares ‘000 Shares ‘000
Weighted average number of ordinary shares in issue 588,446 581,646 588,446 581,646
Outstanding share-based payment (shares) 1 2,801 1 2,801
Weighted average number of ordinary shares adjusted
588,447 584,447 588,447 584,447
for the effect of dilution
₦ ₦ $ $
Basic loss per share (32.47) (12.98) (0.08) (0.03)
Diluted loss per share (32.47) (12.92) (0.08) (0.03)
The shares were weighted for the proportion of the number of months they were in issue during the reporting period.
25. Dividends paid and proposed

As at 31 December 2022, the final proposed dividend for the Company is ₦11.18, $0.025 (2021: ₦10.3, $0.025) per share
and the proposed Special Dividend is ₦22.36, $0.05 per share (2021: nil).
2022 2021 2022 2021

Cash dividends on ordinary shares declared and paid:

Dividend for 2022: ₦42.60 ($0.10) per share 588,444,561 shares in issue
24,972 29,377 58,844 73,354
(2021: ₦50 ($0.13) per share, 584,035,845 shares in issue)
Proposed dividend on ordinary shares:

Final proposed dividend for the year 2022:
6,553 6,016 14,655 14,601
₦11.18 ($0.025) (2021: ₦10.3 ($0.025) per share
Special proposed dividend for the year 2022:
₦22.36 ($0.05) (2021: nil) per share 13,106 0 29,270 0
During the year, ₦32.2 billion, $44.1 million of dividend was paid at ₦54.70, $0.070 per share as final dividend for 2022.
As at 31 March 2022, ₦ 10.47 billion, $ 14.7 million was paid at ₦17.79, $0.02 per share for 2022 Q1; As at 30 June 2022,
₦ 10.62 billion, $ 14.7 million was paid at ₦18.05, $0.02 per share for 2022 Q2; As at 30 September 2022, ₦ 11.10 billion,
$ 14.7 million was paid at ₦18.86, $0.02 per share for 2022 Q3. Final and Special Naira dividend payments will be based
on the Naira/Dollar rates on the date for determining the exchange rate. The payment is subject to shareholders’ approval
at the 2022 Annual General Meeting. The tax effect of dividend paid during the year was $4.3 million (₦5.6 billion).
26. Related party relationships and transactions

The Company is owned 6.43% either directly or by entities controlled by A.B.C Orjiako (SPDCL(BVI)) and members of his
family and 8.20% either directly or by entities controlled by Austin Avuru (Professional Support Limited and Platform
Petroleum Limited). The remaining shares in the parent Company are widely held.
The goods and services provided by the related parties are disclosed below. The outstanding balances payable
to/receivable from related parties are unsecured and are payable/receivable in cash.
26.1 Shareholders of the parent company
Shebah Petroleum Development Company Limited SPDCL (‘BVI’):

The Chairman of Seplat is a director and shareholder of SPDCL (BVI). The company provided consulting services to
Seplat. Services provided to the Company during the period amounted to $916.5 thousand, ₦409.8 million (2021: $1.1
million, N0.45 billion). Payables amounted to nil in the current period.
27. Information relating to employees

27.1 Number of directors
The number of Directors whose emoluments fell within the following ranges was:
2022 2021
Number Number
Zero – ₦19,896,500 - -
₦19,896,501 – ₦115,705,800 - -
₦115,705,801 – ₦157,947,600 - -
Above ₦157,947,600 3 3
3 3
2022 2021
Number Number
Zero – $65,000 - -
$65,001 – $378,000 - -
$378,001 – $516,000 - -
Above $516,000 3 3
3 3
27.2 Employees
The number of employees (other than the Directors) whose duties were wholly or mainly discharged within Nigeria, and
who earned over ₦1,989,500 ($6,500), received remuneration (excluding pension contributions) in the following ranges:
2022 2021
Number Number
₦1,989,650 – ₦4,897,600 25 16
₦4,897,601– ₦9,795,200 101 118
₦9,795,201 – ₦14,692,800 153 140
Above ₦14,692,800 252 201
531 475
2022 2021
Number Number
$6,500 – $16,000 25 16
$16,001 – $32,000 101 118
$32,001 – $48,000 153 140
Above $48,000 252 201
531 475
27.3 Number of persons employed during the year

The average number of persons (excluding Directors) in employment during the year was as follows:
2022 2021

Number Number
Senior management 35 30
Managers 155 128
Senior staff 297 237
Junior staff 44 80
531 475
28. Commitments and contingencies
28.1 Contingent liabilities

The Company is involved in a number of legal suits as defendant. The estimated value of the contingent liabilities for the
year ended 31 December 2022 is ₦5.5 billion, $1.22 million (2021: ₦7.9 billion, $19.2 million). The contingent liability for
the year is determined based on possible occurrences, though unlikely to occur. No provision has been made for this
potential liability in these financial statements. Management and the Company’s solicitors are of the opinion that the
Company will suffer no loss from these claims.
29. Events after the reporting period

There was no event after the reporting period which could have a material effect on the disclosures and the financial
position of the Company as at 31 December 2022 and on its profit or loss and other comprehensive income for the period
ended.
Statement of value added

Restated Restated
2022 2021 2022 2021
₦ million % ₦ million % $’000 % $’000 %
Other loss (1,273) (4) (2,998) (10)
Finance income 412 131 971 327
Cost of goods and other services:

Local (9,212) (6,382) (21,834) (15,924)
Foreign (6,141) - (14,556) -
Valued added (16,214) 100% (6,225) 100% (38,417) 100% (15,607) 100%
Applied as follows:
Restated Restated
2022 2021 2022 2021
₦ million % ₦ million % $’000 % $’000 %
To employees: – as salaries and
821 (5%) 1,209 (19%) 1,934 (5%) 3,020 (19%)
labour related expenses
To government: – as company 1,961 (12%) - - 4,385 (11%) - -

taxes
Retained for the Company’s future:
– For asset replacement,
112 (1%) 88 (1%) 266 (1%) 220 (1%)
depreciation, depletion &
amortization
Loss for the year (19,107) 118% (7,552) 120% (45,002) 117% (18,847) 120%
Valued added (16,214) 100% (6,255) 100% (38,417) 100% (15,607) 100%
The value added represents the additional wealth which the Company has been able to create by its own and its employees’
efforts. This statement shows the allocation of that wealth to employees, providers of finance, shareholders, government
and that retained for the creation of future wealth.

Supplementary financial information (unaudited)
Restated Restated
2022 2021 2020 2019 2018
Revenue from contracts with customers - - - 200,733 217,174
(Loss)/profit before taxation (19,107) (6,473) (7,160) 79,613 85,429
Income tax expense - - - (13,484) (35,748)
(Loss)/profit for the year (19,107) (6,473) (7,160) 66,129 49,681
2022 2021 2020 2019 2018

Capital employed:
Issued share capital 297 296 293 289 286

Share premium 91,317 90,383 86,917 84,045 82,080
Treasury shares (2,025) (2,025) - - -
Retained earnings 176,136 220,215 255,859 282,228 234,148
Foreign translation reserve 447,429 388,690 393,687 196,535 196,552
Total equity 725,194 708,405 749,862 577,223 526,296
Represented by:
Non-current assets 965,584 885,581 877,795 518,366 328,870
Current assets 791,671 598,851 73,124 539,423 514,131
Non-current liabilities - - - (233,715) (173,276)
Current liabilities (1,032,061) (776,027) (201,057) (246,851) (143,429)
Net assets 725,194 708,405 749,862 577,223 526,296

Restated
2022 2021 2020 2019 2018
$’000 $’000 $’000 $’000 $’000
Revenue from contracts with customers - - - 654,037 709,493
(Loss)/profit before taxation (45,002) (16,151) (19,897) 259,411 279,093
Income tax expense - - - (43,934) (116,788)
(Loss)/profit for the year (45,002) (16,151) (19,897) 215,477 162,305
Restated
2022 2021 2020 2019 2018
$’000 $’000 $’000 $’000 $’000
Capital employed:
Issued share capital 1,864 1,862 1,855 1,845 1,834
Share premium 522,227 520,138 511,723 503,742 497,457
Treasury shares (4,915) (4,915)
Retained earnings 1,037,830 1,141,677 1,230,666 1,304,197 1,147,526
Total equity 1,621,899 1,720,952 1,811,836 1,880,210 1,714,316
Represented by:
Non-current assets 2,159,515 2,151,068 2,148,506 1,688,491 1,071,233
Current assets 1,770,568 1,453,769 192,430 1,757,082 1,674,694
Non-current liabilities - - - (761,285) (564,416)
Current liabilities (2,308,184) (1,883,885) (529,100) (804,078) (467,195)
Net assets 1,621,899 1,720,952 1,811,836 1,880,210 1,714,316
30. Exchange rates used in translating the accounts to Naira

The table below shows the exchange rates used in translating the accounts into Naira
Basis 31 December 2022 31 December 2021

N/$ N/$
Property, plant & equipment – opening balances Historical rate Historical Historical
Property, plant & equipment – additions Average rate 424.37 400.48
Property, plant & equipment - closing balances Closing rate 447.13 411.93
Current assets Closing rate 447.13 411.93
Current liabilities Closing rate 447.13 411.93
Equity Historical rate Historical Historical
Income and Expenses: Overall Average rate 424.37 400.48

Seplat Energy PLC 2022 Audited Financial Statement

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Audited results

for the year ended

Seplat Energy Plc | Full year 2022 Financial Results

Outlook for 2023

Roger Brown, Chief Executive Officer, said:

Seplat Energy Plc | Full year 2022 Financial Results

Responsibility for publication

Seplat Energy Plc | Full Year 2022 Financial Results 3

Event title: Seplat Energy Plc: Full year results

Conference call and pre-register Link: https://secure.emincote.com/client/seplat/seplat016/vip_connect

Archive Link: https://secure.emincote.com/client/seplat/seplat012

Citigroup Global Markets Limited

Investec Bank plc

About Seplat Energy

Seplat Energy Plc | Full Year 2022 Financial Results 4

2P reserves at 31/12/2022 2P reserves at 31/12/2021

2C resources at 31/12/2022 2C resources at 31/12/2021

Seplat Energy Plc | Full Year 2022 Financial Results 5

Working interest production by quarter

Q1 2022 Q2 2022 Q3 2022 Q4 2022

Divestment of Ubima marginal field

Seplat Energy Plc | Full Year 2022 Financial Results 6

Farm-in to Abiala marginal field

Export infrastructure diversification

Seplat Energy Plc | Full Year 2022 Financial Results 7

Midstream Gas performance

Gas contracts and pricing

Midstream Gas business separation from Upstream

Additional third-party volumes

ANOH Gas Processing Plant

Sapele Gas Plant

Seplat Energy Plc | Full Year 2022 Financial Results 8

Reducing our emissions towards Net Zero

Seplat Energy Plc | Full Year 2022 Financial Results 9

Focus on asset integrity

Proposed acquisition of MPNU

Seplat Energy Plc | Full Year 2022 Financial Results 10

Seplat Energy Plc | Full Year 2022 Financial Results 11

Effective tax rate analysis Income tax expense Tax rate

Seplat Energy Plc | Full Year 2022 Financial Results 12

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Net debt reconciliation at 31 December 2022 $ million Coupon Maturity

* including amortised interest

Refinancing of the $350 million revolving credit facility (RCF)

Seplat Energy Plc | Full Year 2022 Financial Results 13

Final and Special Dividend

Oil put options Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Conversion to PIA fiscal regime

Seplat Energy Plc | Full Year 2022 Financial Results 14

Basil Omiyi Independent Chairman Nigerian

Olivier De Langavant Non-Executive Director French

Seplat Energy Plc | Full Year 2022 Financial Results 15

Seplat Energy Plc | Full Year 2022 Financial Results 16

Operating profit(loss) 116,589 100,401 274,740 250,688

Profit before taxation (loss) 86,730 71,028 204,376 177,345

Profit for the year (loss) 44,433 46,931 104,706 117,176