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Seplat signs binding agreement to sell a 10% working interest in the NNPCL/SEPNU joint venture to NNPC Limited for approximately $281.6 million.
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NNPC’s stake in the strategic oil joint venture will increase from 60% to 70%, while Seplat retains operatorship and full ownership of SEPNU.
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Company earmarks half of the transaction proceeds for debt repayment and the remaining half for enhanced shareholder dividends, including a special cash payout.
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Seplat says the deal will not derail its 2026 production outlook, with completion expected in the second half of 2026 pending regulatory approvals.
July 30, (THEWILL) — Seplat Energy Plc has entered into a binding agreement with the Nigerian National Petroleum Company (NNPC) Limited to sell a 10 per cent working interest in their jointly owned upstream oil assets for approximately $281.6 million
THEWILL reports that the transaction, disclosed in a filing on the Nigerian Exchange (NGX) on Thursday, represents a significant step in the implementation of plans first announced in September 2025 following Seplat’s acquisition of Seplat Energy Producing Nigeria Unlimited (SEPNU).
Under the agreement, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU) executed a legally binding Heads of Agreement with NNPC Limited covering the sale of a 10 per cent working interest in the assets held within the NNPCL/SEPNU Joint Venture.
Seplat said the headline consideration for the transaction is approximately $281.6 million, representing about 25 per cent of the gross acquisition consideration, including contingent payments, made by SEOL for the acquisition of SEPNU.
Following completion, NNPC’s working interest in the joint venture will rise from 60 per cent to 70 per cent, while SEPNU’s interest will reduce from 40 per cent to 30 per cent.
However, Seplat will continue to own 100 per cent of the share capital of SEPNU and remain the operator of the joint venture assets.
The company stated that the transaction is expected to close in the second half of 2026, subject to obtaining all necessary regulatory approvals and satisfying customary closing conditions. The effective date of the deal has been fixed as April 1, 2026.
Seplat said the disposal is consistent with its capital allocation strategy, designed to optimise its financial position while creating additional value for shareholders.
According to the company, approximately 50 per cent of the transaction proceeds will be used to reduce outstanding debt, while the remaining half will be returned to shareholders through enhanced cash distributions.
Subject to completion, Seplat said about $140 million, representing 23.3 US cents per share, will be distributed as a special cash dividend, in addition to dividends arising from the company’s normal business performance.
The company also disclosed plans to reduce its gross debt by as much as $300 million.
It noted that $200 million under its Advanced Payment Facility (APF) had already been repaid during the second quarter of 2026, while the outstanding $100 million would be settled after the transaction is completed.
On production, Seplat assured investors that the sale would not affect its operational outlook for 2026.
The company maintained that the NNPCL/SEPNU Joint Venture remains a key contributor to group output and that its existing production guidance of 135,000 to 155,000 barrels of oil equivalent per day (kboepd) remains unchanged.
It explained that SEPNU currently contributes approximately 80,000 barrels of oil equivalent per day at the midpoint of its production guidance.
Following the transaction’s effective date, that contribution will reduce to approximately 65,000 barrels of oil equivalent per day, reflecting the lower working interest, while the company’s overall production target remains intact. Seplat added that revised guidance would be issued upon completion of the transaction.
Commenting on the agreement, Seplat Energy Chief Executive Officer, Roger Brown, described the NNPCL/SEPNU Joint Venture as one of Nigeria’s most strategically important upstream oil assets.
He said the partnership between Seplat and NNPC remains strong, adding that both parties are aligned on work programmes aimed at unlocking additional value from the assets.
Brown noted that the joint venture has responded positively to increased investment and development activities since Seplat assumed operatorship and possesses the capacity to deliver sustained production growth well into the next decade.
He added that Seplat’s strong financial position allows the company to simultaneously strengthen its balance sheet through debt reduction while enhancing shareholder value through increased cash returns.
Background
The transaction follows Seplat Energy’s transformational acquisition of Mobil Producing Nigeria Unlimited’s onshore shallow-water business, subsequently renamed Seplat Energy Producing Nigeria Unlimited (SEPNU), in one of Nigeria’s largest indigenous upstream oil acquisitions.
The acquisition significantly expanded Seplat’s production capacity, reserves and operational footprint, cementing its position among Nigeria’s leading independent energy companies.
Since taking over operatorship, the company has intensified field development activities and production optimisation across the assets in collaboration with NNPC Limited.
Industry analysts say the latest transaction reflects Seplat’s disciplined capital management strategy, enabling it to unlock value from its investment, reduce leverage, strengthen cash flow and improve shareholder returns while preserving operational control of one of the country’s most strategic oil-producing joint ventures.
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