Shebah Exploration & Production Company Ltd (SEPCOL) is working at negotiating and settling with creditor banks, a source close to the company has confirmed.
A Federal High Court sitting in Lagos recently ordered Shebah, Allenne Limited and Dr. Ambrosie Orjiako to pay the sum of $144.2 million to three banks.
The amount, which was to be paid to African Export-Import Bank, Diamond Bank Plc and Skye Bank Plc (now Polaris Bank), was the outstanding and accrued interest on a facility granted to the defendants in 2011.
Dr. Orjiako is the president of Shebah Exploration.
A source close to the company, however, points out that a recent media report misses some facts of the matter.
He referred to a ThisDay publication which he said contained some misrepresentations leaving the facts of the matter at variance with the contents of the publication.
“Contrary to the publication, it was the banks who filed the action at the Lagos high court, where they registered the judgement of the English Court. So, any suggestion that the judgement was registered in Nigeria with the knowledge of the defendants is false.
“The fact of the matter is that Shebah Exploration, Allenne Ltd and Dr Orjiako merely filed defensive action against the registration of the summary of the English court’s judgement.
“Now to the issue of payment; contrary to the insinuation that Shebah had only paid back about $6.1million, the fact is that Shebah has been working to negotiate and settle with the creditor banks and meet its obligations in respect of the facility. Going by evidence filed at the Federal High Court Lagos, Shebah has paid back over $68 million in principal and interest to the creditor banks and is committed to full resolution of the issues of the loan.
“Another fact that was glossed over in the report is that creditor banks suffered a huge setback when they made an attempt to obtain a Mareva injunction (freezing order) and failed as the presiding judge ruled against the creditor’s application on 25th September 2018 according to the records of the court.
“SEPCOL is a foremost indigenous player in the oil and gas industry in Nigeria, which became the first indigenous company to operate an offshore shallow water block with an FPSO, following the acquisition of 40% working interest in OML 108 from ConocoPhillips in 2004. SEPCOL was producing and meeting its obligations until 2014 when it suffered inconclusive workover program due to inadequate funding and collapse of oil prices. Consequently, the creditor banks called the facility on the company after two and half years tenure.
“The default in the facility was further triggered when the lenders declined a $50m repayment offer from a reputable Nigerian bank that offered to join the syndication with an additional facility in the sum of $200m,” the source said.
He added that Orjiako is a renowned orthopaedic surgeon, philanthropist, successful businessman and serial entrepreneur who has championed and midwifed many thriving businesses including Seplat Petroleum Development Company.
