Seplat Energy has agreed to sell a 10% working interest in its joint venture assets with the Nigeria National Petroleum Company (NNPC) Limited for approximately $281.6 million.
The company disclosed this in a corporate filing with the Nigerian Exchange Ltd on Thursday.
According to the statement, Sepat said its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU) signed a binding Heads of Agreement with NNPC Limited for the sale of a 10 per cent working interest in the assets held within the joint venture (JV).
Upon completion, Seplat’s subsidiary, SEPNU, will see its stake in the Joint Venture reduce from 40% to 30%, while NNPC Limited’s stake will increase from 60% to 70%.
Despite the reduced stake, Seplat will remain the operator of the joint venture and will continue to own 100% of SEPNU.
While the effective date of the transaction is April 1, it is expected to be completed in the second half of 2026, subject to regulatory approvals.
Use of Proceeds
The company said it plans to use approximately 50% of the proceeds from the sale to reduce debt and the remaining 50% to pay a special dividend to shareholders, enhancing their returns on investment in the company.
Giving a breakdown, the company said approximately $140 million of the transaction proceeds (equivalent to 23.3 US cents per share) will be paid as cash dividend to shareholders.
On debt repayment, Seplat said it has already repaid $200 million under its Advanced Payment Facility (APF) in the second quarter of 2026 and plans to settle the remaining $100 million after the transaction closes.
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Financial Impact
The company said the transaction will not change the NNPCL/SEPNU JV production targets for 2026, though its long-term production target for 2030 will be revised from 200,000 boepd to 170,000 boepd.
Looking at the company’s most recent reserves updates, it said the transaction would result in group 2P reserves declining by about 13% to 872.9 million boe. “An update to group 2P reserves will be provided following completion of the Transaction,” it added.
Commenting on the transaction, Seplat Energy CEO, Roger Brown, described the NNPCL/SEPNU JV as one of Nigeria’s most strategic oil assets.
Mr Brown said Seplat’s relationship with NNPC remains strong, and is fully aligned with the national oil company on delivering significant value from the JV, which according to him “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.”
“Seplat Energy is on a strong financial footing enabling us to use the proceeds of this disposal to enhance shareholder distributions and further reduce financial leverage, ultimately freeing up future cash flows for shareholders,” he added.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X