Seplat Energy Plc has entered a legally binding agreement to dispose of a 10% working interest in its joint venture assets with the Nigerian National Petroleum Company Limited for approximately $281.6 million.
The company disclosed the transaction in a statement issued on July 30 and published on its website. Its subsidiaries, Seplat Energy Offshore Limited and Seplat Energy Producing Nigeria Unlimited, signed a Heads of Agreement with NNPC Limited covering a portion of the assets within the NNPCL-SEPNU joint venture. The deal forms part of Seplat’s broader capital allocation strategy.
Transaction Terms and Stake Changes
The agreement carries 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 conditions.
Upon completion, SEPNU’s working interest in the joint venture will fall from 40% to 30%, while NNPC Limited’s stake will rise from 60% to 70%. SEPNU will continue as operator of the joint venture, and Seplat Energy will retain 100% ownership of SEPNU.
“Following completion of the Transaction, SEPNU will retain a 30% working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60% to 70%. Seplat Energy will continue to own 100% of the share capital of SEPNU,” the company stated.
Use of Proceeds and Balance-Sheet Focus
Chief Executive Officer Roger Brown said the joint venture remains one of Nigeria’s most strategically important oil and gas assets and that Seplat is aligned with NNPC on future development plans.
“Seplat Energy is on a strong financial footing enabling us to use the proceeds of this disposal to enhance shareholder distributions and further reduce financial leverage, ultimately freeing up future cash flows for shareholders,” Brown said.
The company plans to allocate roughly half of the proceeds to debt reduction and half to increased shareholder returns. Subject to completion, Seplat intends to distribute about $140 million of the proceeds as a cash dividend, equivalent to 23.3 US cents per share, in addition to its regular dividend linked to underlying performance.
Seplat also reaffirmed its commitment to return 40–50% of free cash flow to shareholders between 2026 and 2030 and said it remains on track to deliver at least $1 billion in cumulative shareholder distributions over that period.
Background to the Deal
Discussions between Seplat and NNPC Limited over a possible sale of a 10% interest in the joint venture were first disclosed in September 2025 as part of the company’s medium-term strategy following the acquisition of Mobil Producing Nigeria Unlimited, now Seplat Energy Producing Nigeria Unlimited. The latest announcement confirms those talks have advanced into a legally binding agreement valued at approximately $281.6 million.
Strong Recent Performance and Leadership Changes
The transaction follows a period of robust results for Seplat. In its first-quarter 2026 results, the company reported a 96% 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 in the quarter reached $243.4 million.
For the 2025 financial year, group production increased 148% to 131,506 barrels of oil equivalent per day and revenue rose 144% to $2.73 billion, reflecting the first full-year contribution of the offshore assets acquired through SEPNU, stronger onshore production and expanded gas processing operations.
In April 2026, Seplat became the first listed company on the Nigerian Exchange to surpass N10,000 per share following Nigeria’s reclassification by FTSE Russell, with the stock rallying sharply to become one of the exchange’s best-performing and most valuable names.
In June 2026 the company announced a leadership transition, naming Tony Elumelu as its next Chairman effective January 2027 and appointing Engr. Effiong Okon as Chief Executive Officer effective August 1, 2026, as part of a succession plan to support its next growth phase.
The $281.6 million transaction with NNPC Limited continues Seplat’s strategy of optimising its asset portfolio, strengthening its balance sheet and increasing returns to shareholders while retaining operational control of one of Nigeria’s most important upstream oil and gas ventures.
