Seplat Energy has signed a binding agreement to sell a 10 per cent working interest in the assets held within its joint venture with the Nigerian National Petroleum Company (NNPC) Limited for approximately $281.6 million, advancing a transaction first announced in 2025. The deal will increase NNPC’s stake in the joint venture to 70 per cent, while Seplat Energy Producing Nigeria Unlimited (SEPNU) will retain a 30 per cent interest and continue as the operator of the assets.
The transaction, disclosed in a regulatory filing with the Nigerian Exchange (NGX) on Thursday, was executed through Seplat Energy Offshore Limited (SEOL) and SEPNU. The company said the agreement is expected to be completed in the second half of 2026, subject to regulatory approvals and the fulfilment of other customary closing conditions. The effective date for the transaction has been set as April 1, 2026.
The agreed consideration represents about one-quarter of the gross purchase price and any contingent payments previously made by SEOL for the acquisition of SEPNU. Brandspur Brand News reports that although NNPC’s ownership in the joint venture will rise from 60 per cent to 70 per cent after completion, Seplat will continue to own the entire share capital of SEPNU, ensuring it remains the operator of the producing assets.
Seplat said proceeds from the disposal will be deployed in line with its capital allocation strategy, with around half earmarked for debt reduction and the remaining half dedicated to improving shareholder returns. The company disclosed that, upon completion of the transaction, approximately $140 million, equivalent to 23.3 US cents per share, will be distributed to shareholders as a cash dividend in addition to dividends generated from its underlying business performance.
The energy company also plans to reduce its outstanding borrowings by as much as $300 million. It noted that $200 million under its Advanced Payment Facility had already been repaid during the second quarter of 2026, while the remaining $100 million is expected to be settled after the transaction is finalised.
Despite the reduction in its working interest, Seplat said the sale will not alter the production targets for the NNPCL/SEPNU joint venture. The company maintained its 2026 production guidance of between 135,000 and 155,000 barrels of oil equivalent per day, although the effective contribution from SEPNU will reduce following the transaction’s implementation. Updated production guidance will be issued after completion of the sale.
The transaction forms part of Seplat’s broader financial strategy following its expansion in Nigeria’s upstream oil and gas sector. By strengthening its balance sheet through debt reduction while maintaining operational control of the joint venture assets, the company aims to improve long-term financial flexibility and create additional value for shareholders.
Seplat’s management described the NNPCL/SEPNU joint venture as one of Nigeria’s most strategically important oil and gas assets, noting that ongoing collaboration with NNPC is expected to support continued investment, increased field development and sustained production growth over the coming years. The company also expressed confidence that the combination of lower debt obligations and enhanced shareholder distributions would further strengthen its financial position once the transaction receives all required approvals.
