NNPC to acquire Seplat’s 10% JV for $281.6m

Seplat Energy Plc has entered into an agreement to divest a 10% stake in the NNPCL-SEPNU Joint Venture to the Nigerian National Petroleum Company Limited (NNPC Ltd.) for $281.6 million. This strategic move is anticipated to boost shareholder returns and fortify Seplat's financial standing.

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The agreement reached with NNPC Limited to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture is expected to further enhance shareholder returns, bringing the total expected dividend for 2026 to USD 68.3 cents/share ($410m).

The transaction, detailed in Seplat's unaudited financial results for the first half of 2026, is slated for completion in the latter half of the year. Seplat indicated that the $281.6 million transaction value represents approximately 25% of its cumulative acquisition costs. Upon finalization, the proceeds will be allocated roughly equally between a special dividend for shareholders and the repayment of debt. The company projects this will bring the total expected dividend for 2026 to $68.3 cents per share, totaling $410 million.

Seplat has maintained its 2026 production guidance, expecting output between 135,000 and 155,000 barrels of oil equivalent per day, with current production tracking toward the middle of this range. Capital expenditure guidance also remains unchanged at $360 million to $440 million for the year, though spending will be weighted towards the second half. However, the company has revised its unit operating cost guidance upward to between $14.5 and $15.5 per barrel of oil equivalent, citing increased costs associated with Yoho restoration.

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Agreement reached to sell a 10% interest in NNPCL-SEPNU JV to NNPC Ltd. The headline transaction value of $281.6m represents 25 per cent of Seplat’s acquisition costs to date. Completion is expected in 2H 2026. Upon completion, proceeds will be split ~50:50 between a transaction dividend and debt repayment.

The announcement coincides with Seplat's robust financial performance for the first half of 2026. Revenue climbed 30% year-on-year to $1.82 billion from $1.398 billion. Profit after tax saw a dramatic increase of 498%, reaching $164 million. Adjusted EBITDA grew by 28% to $939 million, and cash generated from operations increased by 29% to $985.9 million. The company also significantly reduced its net debt by 45% to $370.7 million by the end of June, down from $673.3 million at the end of 2025, following the repayment and cancellation of $200 million under its Advanced Payment Facility.

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Our first-half performance benefited from a supportive commodity price environment, translating into strong operational and financial results.