Seplat Energy Sells 10% JV Stake to NNPC for $281.6 Million

Seplat Energy Plc has entered into a binding agreement to sell a 10% working interest in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture to the Nigerian National Petroleum Company Ltd (NNPC) for $281.6 million (approximately ₦384.38 billion). The deal was disclosed in a corporate filing on Thursday, following prior discussions between the companies.

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

The transaction is contingent upon receiving regulatory approvals and fulfilling other customary conditions, with an anticipated completion in the latter half of 2026. The effective date for the transaction is set as April 1. Upon completion, Seplat will retain a 30% working interest and continue to operate the joint venture, while NNPC's stake will increase from 60% to 70%. Seplat will maintain 100% ownership of SEPNU's share capital.

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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.

Seplat plans to allocate the proceeds from the sale according to its capital allocation strategy. Approximately half of the funds will be directed towards reducing debt, with the remainder intended for enhanced shareholder returns. This includes a special cash dividend of about $140 million (₦191.1 billion), equivalent to 23.3 U.S. cents per share, to be distributed upon closing, in addition to regular dividends.

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The transaction remained subject to regulatory approvals and other customary conditions, with completion expected in the second half of 2026.

The company also intends to repay up to $300 million in gross debt, including $200 million under its Advanced Payment Facility already settled in the second quarter of 2026. The remaining $100 million will be repaid after the transaction concludes. While the disposal will not impact the joint venture's 2026 production target, SEPNU's contribution to the group's overall production guidance will decrease. Seplat's long-term production target for 2030 is revised to 170,000 barrels of oil equivalent per day from 200,000 boepd, and group 2P reserves are expected to decline by about 13% to 872.9 million barrels of oil equivalent.

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Seplat 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.