Seplat to sell 10% stake in joint venture to NNPC Ltd for $281.6m
By Firdaus Jibril
Seplat Energy Plc has signed an agreement with the Nigerian National Petroleum Company (NNPC) Limited to sell a 10 percent working interest in its joint venture assets for approximately $281.6 million.
The company disclosed this in a regulatory filing on the Nigerian Exchange (NGX) on Thursday.
According to the filing, Seplat’s subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU) signed a legally binding Heads of Agreement with NNPC for the stake sale.
Seplat said the commercial terms represent about 25 percent of the gross transaction consideration paid, along with contingent consideration related to its initial acquisition of SEPNU.
Upon completion of the transaction, SEPNU will retain a 30 percent stake in the joint venture assets and continue as operator, while NNPC’s working interest will increase from 60 percent to 70 percent.
The company added that it will maintain 100 percent ownership of SEPNU’s share capital.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions, with an effective date of April 1, 2026.
Seplat intends to deploy the proceeds in line with its capital allocation strategy, splitting the funds roughly equally between debt reduction and shareholder returns.
Pending transaction completion, approximately $140 million (equivalent to 23.3 US cents per share) will be distributed to shareholders as a special cash dividend, alongside regular performance payouts.
The company also disclosed that it repaid $200 million under its Advanced Payment Facility during Q2 2026, with plans to clear the remaining $100 million once the transaction closes.
Seplat reassured stakeholders that the transaction will not affect the joint venture’s pre-completion production targets.
SEPNU currently contributes around 80,000 barrels of oil equivalent per day (boepd), the midpoint of the group’s 2026 guidance range of 135,000 to 155,000 boepd.
Commenting on the deal, Seplat Energy Chief Executive Officer Roger Brown described the NNPCL/SEPNU joint venture as one of Nigeria’s most strategic oil and gas assets.
He emphasized Seplat’s strong relationship with NNPC and stated that the company remains focused on maximizing value through ongoing development and production growth.
Brown added that Seplat’s solid financial footing allows it to leverage the proceeds to reduce debt, boost cash flow, and deliver greater shareholder returns.