Seplat’s Former CEO May File A Lawsuit Against The Board

Wood Mackenzie: Nigeria Economy Benefits From The SEPLAT And Exxonmobil Deal
Wood Mackenzie: Nigeria Economy Benefits From The SEPLAT And Exxonmobil Deal

Austin Avuru, a former Seplat Energy CEO, may file a legal action against the oil driller in response to his abrupt dismissal by the company’s hierarchy, according to his lawyers Perchstone and Graeys on Friday.

The move is the latest development in the corporation’s feud with Mr Avuru, who retired from the firm as CEO in November 2019 but later became a non-executive director until Wednesday, when the Seplat board terminated his contract.

Seplat, Nigeria’s largest oil and gas company by market capitalisation, terminated Mr Avuru’s appointment on Thursday for violating corporate governance procedures and failing in his fiduciary duties.

It demanded that he resign and directed Platform Petroleum Limited to look for someone to fill his position.

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The two had a falling out early this year over an undisclosed issue between the parties, which Seplat had asked its former CEO, now a non-executive director, to keep private, according to a statement by Mr Avuru’s legal team.

According to the law firm, a letter from Seplat in January assisted in “confirming our client’s dignified position and urging our client to act with confidentiality, which is customary to our client’s impeccable character.”

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According to his legal team, Mr. Avuru received his termination notice around 6 p.m. on Wednesday, but was not given a reasonable amount of time to respond before the announcement was made public the next morning.

“We are studying the papers and will almost certainly respond with appropriate steps to remedy the multi-faceted wrongdoings on the part of Seplat on this,” Perchstone and Graeys partner Folabi Kuti told Brandspur