Connect with us
Advertise With Us


Sapele Power Challenges Lease Agreement Infraction By Seistech Energy



The Sapele Power Plc (SPP), has challenged Seistech Energy Limited for working against a lease agreement both firms entered into on the ground of mutual economic benefits.

The SPP is the owner and operator of the 1,020MW Sapele Power Plant.

During the power privatisation exercise, SPP along with its assets, which include two storage tanks and a jetty located within the power plant, was acquired by Eurafric Power Limited.

It was learnt that in 2016, Seistech Energy Limited, an oil and gas company, approached SPP for the lease of one of its storage tanks in the plant for storage of crude oil produced by Mid-Western Oil & Gas Company Limited and a Storage Lease Agreement dated September 6, 2016 was negotiated and executed.

According to Sapele Power, Seistech has failed to meet the terms of the agreement and has resorted to intimidation, attempt to forcibly take over its facilities and threat to life, among others.

“Few months into the transaction, Seistech became bankrupt, and unable to meet its financial obligations under the contract, Seistech then introduced Mid-Western to assume its financial responsibility and Mid-Western effected tank rental payments on behalf of Seistech. Subsequently, Seistech had a fall-out with Mid-Western and payment for the tank rental was suspended.

“Rather than look for creative means of liquidating its indebtedness, Seistech chose to cunningly cook up lies and misinform our business partners, regulatory authorities and unsuspecting third parties that the rented tank did not belong to SPP, rather, belonged to Seistech.

“As a result of this development, we terminated the tank rental contract with Seistech and asked them to pay up outstanding rental debt, evacuate the products from the storage tank in question and vacate our premises immediately.

“Instead of complying, Seistech surreptitiously and continuously sought ways to defraud us by evacuating product in storage without settling its indebtedness (presently in excess of N600,000,000 . So far, its threats and activities have impeded our activities and smooth operations of the power plant,” a source in SPP said.

Sapele Power Plc also maintained that to undermine security and control of the its power plant, within which the storage tank is located, Seistech, with the connivance of the police, deployed mobile policemen from Mopol 33 into the plant, leading to a faceoff with SPP’s mobile policemen from Mopol 44 with threat of gunfire exchange.

According to SPP, Seistech again orchestrated replacement of mobile policemen from Mopol 33  and 44  with mobile policemen from Mopol 51, who report to Seistech, and Seistech has laid siege on SPP, bringing all manner of third parties to perfect arrangements for evacuating the tank without settling its rental debt.

When contacted by our correspondent, Mr. Ben Odoko, managing director of Seistech, said the SPP was entitled to its opinion and the allegations were unfounded.



%d bloggers like this: