Seplat sells part of JV stake to NNPC for $281.6m

Seplat Energy Plc has signed an agreement with the Nigerian National Petroleum Company Ltd (NNPC) to sell a 10 percent working interest in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture for $281.6 million (₦384.38 billion).

The company made this known in a filing with the Nigerian Exchange Ltd on Thursday.

Seplat said the deal was made through its subsidiaries, Seplat Energy Offshore Ltd and Seplat Energy Producing Nigeria Unlimited (SEPNU), after talks with NNPC.

The company noted that the deal still needs regulatory approvals and other usual conditions, with completion expected in the second half of 2026. The effective date for the transaction is 1 April.

After the deal is complete, Seplat will keep a 30 percent working interest in the joint venture and will still be the operator. NNPC’s share will rise from 60 percent to 70 percent.

Seplat added that it will continue to own 100 percent of the share capital of SEPNU.

The company plans to use the money from the deal according to its capital allocation strategy. About half will go towards reducing debt, while the rest will boost returns for shareholders.

Seplat said it will distribute around $140 million (₦191.1 billion), which is about 23.3 US cents (₦318.05) per share, as a special cash dividend to shareholders after the deal is done. This will be in addition to its regular dividend.

The company also plans to pay back up to $300 million (₦409.5 billion) in gross debt. It mentioned that $200 million (₦273 billion) from its Advanced Payment Facility has already been paid in the second quarter of 2026. The remaining $100 million (₦136.5 billion) will be settled after the deal closes.

Seplat said this sale will not change the joint venture’s production target for 2026. However, it noted that SEPNU’s contribution to the overall production guidance will drop after the deal.

The long-term production target for 2030 will be adjusted to 170,000 barrels of oil equivalent per day (boepd) from 200,000 boepd. The group’s 2P reserves will fall by about 13 percent to 872.9 million barrels of oil equivalent once the deal is finalized.

Roger Brown, the Chief Executive Officer of Seplat Energy, commented on the transaction. He called the NNPCL/SEPNU Joint Venture one of Nigeria’s key oil assets.

He said the company is committed to working with NNPC to create value from the joint venture and realize its long-term production potential.

Brown added that Seplat’s strong financial position will allow it to use the funds to reward shareholders, reduce debt, and improve future cash flows.