Orjiako Repaying Shebah Loans

Bayo Akinloye

Fresh facts have emerged about the involvement of the Chairman of Seplat Energy Plc, Dr. A.B.C. Orjiako in the Shebah loans obtained to carry out drilling campaign in OML 108.

Findings showed that contrary to the media reports, Orjiako has personally repaid a total of $143.3 million. A breakdown of the sum was $89.3 million and $54 million repaid so far by him respectively.

Cases related to the loan had been in various courts between London and Nigeria since 2014, until the latest initiated by Zenith Bank in October 2021.

All the cases were in relation to the inconclusive drilling campaign in Ukpokiti oil field, offshore the Niger Delta.

Orjiako was merely the majority shareholder of Shebah and guarantor of the facilities.

But findings revealed that he had repaid $89.3 million (out of a total principal of $150 million) including the $20 million paid this year to the consortium of AMCON/Afrexim/Access Bank toward the repayment efforts.

Also, it was gathered that he had made a proposal to the creditors to accommodate Zenith Bank in the distribution of the repayment, but they were yet to accept the proposal, which would have prevented the Zenith Bank court action last month.

Similarly, in the case of Zenith Bank, Orjiako, it was gathered, has also paid back $54 million (including proceeds of forced sale of his family Seplat shares by Zenith Bank) out of the principal of $70 million and is currently engaging the bank to negotiate an out of court settlement.

The repayments were said to be clear indications of his willingness to repay a loan he did not utilise personally and instead for oil assets that are not generating any revenues.