Seplat to sell 10% joint venture stake to NNPC for $281m

Seplat Energy has entered into an agreement with the Nigerian National Petroleum Company (NNPC) Limited to divest a 10 percent interest in the assets owned under their joint venture for a total value of $281 million.

The company disclosed the transaction in a notice filed with the Nigerian Exchange (NGX) on Thursday.

Seplat Energy first revealed plans for the transaction in September 2025.

Giving an update on the deal, the company said its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), have entered into a binding heads of agreement with NNPC Limited to transfer a 10 percent working interest in the assets under the NNPCL/SEPNU joint venture. The agreement is valued at about $281.6 million.

The company said the financial terms of the deal amount to roughly 25 percent of the total consideration, including any contingent payment, made by SEOL during its acquisition of SEPNU.

According to Seplat, once the transaction is completed, SEPNU will continue operating the joint venture while retaining a 30 percent interest in the assets.

The company added that NNPC’s stake in the joint venture will increase from 60 percent to 70 percent, while Seplat will maintain full ownership of SEPNU’s share capital.

Seplat said the deal is expected to close in the second half of 2026, subject to regulatory approvals and the fulfilment of other standard conditions.

“The effective date for the Transaction is 1 April 2026,” the firm said.

Seplat to channel proceeds to debt repayment, shareholder dividends

Seplat said the funds from the transaction will be deployed in line with its capital allocation strategy.

“Given the Company’s strong financial position, the intention is to use approximately 50% of proceeds to reduce debt, and 50% to enhance shareholder returns,” the statement reads.

Seplat said subject to completion, approximately $140 million — 23.3 US cents per share — of the proceeds related to the transaction will be paid as cash dividend to shareholders.

“This will be paid in addition to the underlying business performance dividend,” the company said.

“Debt reduction: Up to $300 million of gross debt targeted for repayment. Of this, $200 million of the Advanced Payment Facility (‘APF’) was repaid in 2Q 2026 and the balance of $100 million is due to be paid post completion of the Transaction.

The company said that, if the transaction is completed, about $140 million of the proceeds equivalent to 23.3 US cents per share will be distributed to shareholders as a cash dividend.

“This will be paid in addition to the underlying business performance dividend,” the company said.

On debt obligations, Seplat said it intends to repay up to $300 million in gross debt. It noted that $200 million under the Advanced Payment Facility (APF) was settled in the second quarter of 2026, while the remaining $100 million will be paid after the transaction is completed.

“Our relations with our partner NNPCL are strong and we are fully aligned on the agreed work programmes,” Brown said.

“Together, we are focused on delivering significant value from the JV which has responded very well to increased development activity since we became operator and has clear potential to deliver strong production growth well into the next decade.”

Commenting on the agreement, Roger Brown, Seplat Energy’s chief executive officer (CEO), described the NNPCL/SEPNU joint venture as one of Nigeria’s most significant licence areas and an asset of strategic value to the country.