Seplat sells 10% JV stake to NNPC for $281.6m (₦384.38 billion)

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

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The company disclosed this in a corporate filing with the Nigerian Exchange Ltd on Thursday.

Seplat said the agreement was executed through its subsidiaries, Seplat Energy Offshore Ltd and Seplat Energy Producing Nigeria Unlimited (SEPNU), following earlier discussions with NNPC.

It said the transaction remained subject to regulatory approvals and other customary conditions, with completion expected in the second half of 2026. The effective date of the transaction is 1 April.

Upon completion, Seplat will retain a 30 per cent working interest in the joint venture and continue as operator, while NNPC’s interest will increase from 60 per cent to 70 per cent.

The company added that Seplat would continue to own 100 per cent of the share capital of SEPNU.

Seplat said it planned to deploy the transaction proceeds in line with its capital allocation strategy, with about half earmarked for debt reduction and the balance for enhanced shareholder returns.

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According to the company, about $140 million (₦191.1 billion), equivalent to 23.3 US cents (₦318.05) per share, will be distributed as a special cash dividend to shareholders upon completion, in addition to its regular dividend.

It said it also planned to repay up to $300 million (₦409.5 billion) in gross debt, noting that 200 million dollars (₦273 billion) under its Advanced Payment Facility had already been settled in the second quarter of 2026, while the remaining $100 million (₦136.5 billion) would be repaid after the transaction closes.

Seplat said the disposal would not affect the joint venture’s 2026 production target, although SEPNU’s contribution to the group’s overall production guidance would decline following the transaction.

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It added that its long-term production target for 2030 would be revised to 170,000 barrels of oil equivalent per day (boepd) from 200,000 boepd, while group 2P reserves would decline by about 13 per cent to 872.9 million barrels of oil equivalent upon completion.

Commenting on the transaction, the Chief Executive Officer of Seplat Energy, Roger Brown, described the NNPCL/SEPNU Joint Venture as one of Nigeria’s most strategic oil assets.

He said the company remained aligned with NNPC on delivering value from the joint venture and unlocking its long-term production potential.

Brown added that Seplat’s strong financial position would enable it to use the proceeds to reward shareholders, reduce leverage and strengthen future cash flows.