The Chief Executive Officer of Lekoil Nigeria Limited, Lekan Akinyanmi has disclosed that the protection and growth of shareholder value remain priority in spite of the changes the company is undergoing in a bid to deliver greater efficiency.
Akinyanmi who spoke on CNBC Africa on July 5 2021, noted that notwithstanding the management issues that have characterized the company in the past few months, he remains committed to delivering higher returns to Lekoil Nigeria Limited and Lekoil Limited (Lekoil Cayman) investors and other stakeholders.
“Over the years, we have run the company properly, with essentially the best interests of shareholders in mind and advocated high corporate governance principles,” Akinyanmi said.
“At present, we have four outstanding assets. Our asset at Otakikpo is producing just below 6,000 barrels per day and could go as far as 20,000 barrels per day. We have the Ogo field which is a discovery we made offshore Lagos. It is the largest discovery in Nigeria in the last ten years and was the third largest in the world in 2013,” he noted while underscoring the huge potential the company sits on.
Addressing his removal as Lekoil Cayman CEO, Akinyanmi who is also the single major non-corporate shareholder in the company, noted that the narrative that has been put out by Lekoil Cayman’s board is “an incorrect and incomplete narrative.” He however chose not to comment further as the matter is sub judice. “By the time there is full reckoning, the full picture will emerge for all to see,” he noted in the interview, which was monitored in Lagos.
While pointing to the need for amicable resolution of outstanding issues, he noted that at the point of Lekoil Cayman’s Initial Public Offer (IPO), the stock traded at between £2.50 and £3.00 per share, while Brent Crude Oil was selling at $45per barrel. However, as at June 29, 2021, the stock closed at £1.10 even though oil sold at $72.98 per barrel.
“What is happening is that the value of our assets is not reflecting on the stock price because of the way the Extraordinary General Meeting of January 2021 went and the aggressive approach of the Cayman board to addressing issues”, he said at the interview.
A promising company with strategic national assets under its care, Lekoil Nigeria has interests in OPL 310 (17.14%), OPL 276 (45%), the marginal Otakikpo field (40%) and OPL 325 (62% indirect interest).
The company was founded in 2010 by Mr. Akinyanmi in a desire to develop identified national energy assets, secure Nigeria’s energy future and contribute to the attainment of government’s imperative in the energy sector.
In 2013, Lekoil Cayman was created as a vehicle for attracting funding. Lekoil Cayman is a minority shareholder in Lekoil Nigeria Limited with ownership of just 40% equity. The major shareholder in Lekoil Nigeria Limited, Akinyanmi remains fully in charge of the company.