Seplat Energy Plc has signed a legally binding agreement to sell a 10 per cent working interest in its joint venture assets with Nigerian National Petroleum Company Limited (NNPC Limited) for approximately $281.6 million.
The company disclosed in a statement issued on July 30 that its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), had entered into a Heads of Agreement with NNPC Limited for the transaction.
The deal involves part of the assets held under the NNPCL-SEPNU joint venture and aligns with Seplat’s broader capital allocation strategy aimed at strengthening its balance sheet and improving shareholder value.
The transaction has an effective date of April 1, 2026, and is expected to close in the second half of 2026, subject to regulatory approvals and other customary completion conditions.
Upon completion, SEPNU’s working interest in the joint venture will reduce from 40 per cent to 30 per cent, while NNPC Limited’s stake will increase from 60 per cent to 70 per cent.
Despite the reduced ownership stake, Seplat will continue to operate the joint venture, while retaining full ownership of SEPNU.
Seplat Energy Chief Executive Officer Roger Brown said the joint venture remains one of Nigeria’s most strategically important oil and gas assets and that the company remains aligned with NNPC Limited on future development plans.
Brown said the proceeds from the transaction would allow Seplat to enhance shareholder distributions and reduce financial leverage, creating additional future cash flow opportunities.
The company plans to allocate roughly half of the proceeds towards debt reduction and the remaining half towards shareholder returns.
The agreement follows discussions first disclosed by Seplat in September 2025, when the company informed the Nigerian Exchange that it was considering selling a 10 per cent interest in the NNPCL/SEPNU Joint Venture as part of its medium-term strategy after acquiring Mobil Producing Nigeria Unlimited, now known as SEPNU.
The transaction comes amid strong financial performance from Seplat. In its first-quarter 2026 results, the company reported a 96 per cent increase in dividend payout to 9.0 US cents per share, while profit after tax rose to $37.9 million from $23.3 million a year earlier. Cash generated during the quarter reached $243.4 million.
For the 2025 financial year, Seplat recorded significant growth, with group production increasing 148 per cent to 131,506 barrels of oil equivalent per day (boepd) and revenue rising 144 per cent to $2.73 billion.
The company attributed the growth to the first full-year contribution from offshore assets acquired through SEPNU, stronger onshore production and expanded gas processing operations.
Following completion of the transaction, Seplat said it intends to distribute about $140 million of the proceeds as a special cash dividend, equivalent to 23.3 US cents per share, in addition to its regular dividend payments linked to business performance.
The company also reaffirmed its commitment to returning 40–50 per cent of free cash flow to shareholders between 2026 and 2030, targeting at least $1 billion in cumulative shareholder distributions over the period.
Seplat has recorded several major milestones in recent months, including becoming the first company listed on the Nigerian Exchange to surpass N10,000 per share in April 2026, following strong investor interest after Nigeria’s market reclassification by FTSE Russell.
The company also announced a leadership transition plan in June 2026, appointing Tony Elumelu as its next chairman effective January 2027 and naming Effiong Okon as Chief Executive Officer effective August 1, 2026.
The latest agreement with NNPC Limited marks another step in Seplat’s strategy of optimising its asset portfolio, strengthening its financial position and increasing returns to shareholders while maintaining operational control of a key Nigerian upstream oil and gas venture.
