Seplat Energy has announced an agreement to sell a 10% working interest in the assets of its joint venture with the Nigerian National Petroleum Company (NNPC) Limited for approximately $281.6 million, marking another major development in Nigeria’s oil and gas sector.
The company disclosed the transaction in a filing on the Nigerian Exchange (NGX) on Thursday, providing an update on a deal that was first announced in September 2025. According to Seplat, its subsidiaries—Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU)—have signed a legally binding Heads of Agreement with NNPC to complete the sale.
Under the proposed deal, NNPC’s stake in the joint venture will increase from 60% to 70%, while SEPNU’s interest will reduce from 40% to 30%. Despite the reduction in ownership, Seplat confirmed that SEPNU will remain the operator of the joint venture, while the company will continue to own 100% of SEPNU’s share capital.
Seplat said the transaction is expected to be completed in the second half of 2026, subject to regulatory approvals and other customary conditions, with an effective date of April 1, 2026.
The energy company also outlined how it intends to use the proceeds from the sale. According to the statement, about half of the funds will be used to reduce the company’s debt, while the remaining 50% will be returned to shareholders through dividends.
Subject to the successful completion of the transaction, Seplat said about $140 million, equivalent to 23.3 US cents per share, will be distributed as a cash dividend to shareholders, in addition to the company’s regular dividend based on business performance.
The company also revealed plans to repay up to $300 million in debt. It noted that $200 million under its Advanced Payment Facility (APF) had already been repaid during the second quarter of 2026, while the remaining $100 million will be settled after the transaction is completed.
Although the ownership structure will change, Seplat stressed that its production targets for 2026 remain unchanged. The company explained that production from the NNPCL/SEPNU joint venture currently contributes about 80,000 barrels of oil equivalent per day (kboepd) to its overall production guidance of 135,000–155,000 kboepd. Following the transaction’s effective date, that contribution is expected to reduce to approximately 65,000 kboepd, while updated production guidance will be issued once the deal is finalised.
Commenting on the agreement, Seplat Energy CEO Roger Brown described the joint venture as one of Nigeria’s most strategic oil and gas assets.
“Our relations with our partner NNPCL are strong and we are fully aligned on the agreed work programmes. 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.”
Brown added that Seplat’s healthy financial position gives the company the flexibility to reward shareholders while simultaneously reducing its debt burden, strengthening its long-term financial outlook.
Source: Seplat Energy filing on the Nigerian Exchange (NGX).
