Seplat Energy says it has signed an agreement with the Nigerian National Petroleum Company (NNPC) Limited to sell 10 percent stake in the assets held within the joint venture of NNPC Limited and Seplat Energy Producing Nigeria Unlimited (NNPCL/SEPNU) for $281 million.
Seplat disclosed the details of the transaction in a filing on the Nigerian Exchange (NGX) on Thursday.
The company first announced the transaction in September 2025.
Providing an update on the transaction, Seplat Energy said its subsidiaries, Seplat Energy Offshore Limited (SEOL) and SEPNU, signed a legally binding heads of agreement with NNPC for the sale of a 10 per cent working interest in the assets held within the NNPCL/SEPNU JV “for a headline transaction value of about $281.6 million”.
The company said the commercial terms represent about 25 per cent of the “gross transaction consideration paid and any contingent consideration payable by SEOL, for its acquisition of SEPNU”.
Following completion of the transaction, according to the statement, SEPNU will retain a 30 per cent stake in the joint venture assets and will continue as operator.
The company added that NNPC’s working interest in the JV will rise from 60 per cent to 70 per cent, while Seplat will continue to own 100 per cent of the share capital of SEPNU.
Seplat said the transaction, expected to be completed in the second half of 2026, is subject to applicable regulatory approvals and other customary conditions.
“The effective date for the Transaction is 1 April 2026,” the firm said.
Seplat Energy said it plans to apply the proceeds of the transaction in line with its capital allocation framework.
“Given the Company’s strong financial position, the intention is to use approximately 50% of proceeds to reduce debt, and 50% to enhance shareholder returns,” the statement reads.
Seplat said subject to completion, approximately $140 million — 23.3 US cents per share — of the proceeds related to the transaction will be paid as cash dividend to shareholders.
“This will be paid in addition to the underlying business performance dividend,” the company said.
“Debt reduction: Up to $300 million of gross debt targeted for repayment. Of this, $200 million of the Advanced Payment Facility (‘APF’) was repaid in 2Q 2026 and the balance of $100 million is due to be paid post completion of the Transaction.
“2026 production target: The Transaction will not change the NNPCL/SEPNU JV production targets, supported by production performance year to date. For reference, SEPNU represents approximately 80 kboepd in the mid-point of our 2026 group production guidance (135 -155 kboepd); assuming the Transaction effective date of 1 April 2026, this contribution falls to approximately 65 kboepd.
“The guidance will be updated upon completion of the Transaction.”
Commenting on the transaction, Roger Brown, chief executive officer (CEO) of Seplat Energy, said the NNPCL/SEPNU joint venture is one of the pre-eminent licence areas in Nigeria and of strategic importance to the country.
“Our relations with our partner NNPCL are strong and we are fully aligned on the agreed work programmes,” Brown said.
“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 said Seplat Energy’s strong financial position allows it to deploy the proceeds from the disposal to increase shareholder returns and further reduce its debt burden, thereby unlocking greater future cash flows for shareholders.
