Seplat Energy Plc has signed a legally binding agreement to sell a 10% working interest in its joint venture assets with the Nigerian National Petroleum Company Limited (NNPC Limited) for approximately $281.6 million, as part of its strategy to strengthen its balance sheet, reduce debt and increase shareholder returns.
The Nigerian energy company disclosed the transaction in a statement issued on July 30, announcing that its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), had signed a Heads of Agreement with NNPC Limited covering the proposed stake sale.
The transaction, which has an effective date of April 1, 2026, is expected to be completed in the second half of 2026, subject to regulatory approvals and other customary closing conditions.
Upon completion, SEPNU’s working interest in the joint venture will reduce from 40% to 30%, while NNPC Limited’s stake will increase from 60% to 70%. However, SEPNU will remain the operator of the joint venture, with Seplat retaining full ownership of the company.
The company said: “Following completion of the Transaction, SEPNU will retain a 30% working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60% to 70%. Seplat Energy will continue to own 100% of the share capital of SEPNU.”
Commenting on the agreement, Seplat Energy Chief Executive Officer, Roger Brown, described the joint venture as one of Nigeria’s most strategically important oil and gas assets, stressing that the company remained aligned with NNPC Limited on its long-term development plans.
He said: “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.”
The company said the transaction would provide greater financial flexibility while allowing it to maintain operational control of the joint venture. It added that approximately half of the proceeds would be used to reduce debt, while the remainder would be returned to shareholders.
The agreement represents the culmination of discussions first disclosed in September 2025, when Seplat informed the Nigerian Exchange that it was in talks with NNPC Limited over the possible sale of a 10% interest in the NNPCL/SEPNU Joint Venture. At the time, the company said the discussions formed part of its medium-term capital allocation strategy following the acquisition of Mobil Producing Nigeria Unlimited, now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
The latest announcement confirms that those negotiations have now progressed into a binding agreement valued at approximately $281.6 million.
The deal comes on the back of a strong financial performance by Seplat Energy.
In its first-quarter 2026 financial results, the company reported a 96% increase in dividend payout to 9.0 US cents per share, while profit after tax rose to $37.9 million from $23.3 million in the corresponding period of the previous year. Cash generated during the quarter stood at $243.4 million.
For the 2025 financial year, Seplat reported group production of 131,506 barrels of oil equivalent per day, representing a 148% increase, while revenue climbed 144% to $2.73 billion. The growth reflected the first full-year contribution from its offshore assets acquired through SEPNU, stronger onshore production and expanded gas processing operations.
Subject to the completion of the transaction, Seplat plans to distribute about $140 million of the proceeds as a special cash dividend, equivalent to 23.3 US cents per share, in addition to its regular dividend linked to underlying business performance.
The company also reaffirmed its commitment to return between 40% and 50% of free cash flow to shareholders from 2026 to 2030 and said it remains on course to deliver at least $1 billion in cumulative shareholder distributions during the period.
The latest transaction adds to a series of corporate milestones achieved by Seplat in recent months. In April 2026, the company became the first firm listed on the Nigerian Exchange to surpass ₦10,000 per share, buoyed by strong investor confidence following Nigeria’s reclassification by FTSE Russell.
In June 2026, Seplat also announced a leadership transition, naming Tony Elumelu as its next Chairman with effect from January 2027, while Engr. Effiong Okon was appointed Chief Executive Officer effective August 1, 2026, as part of the company’s long-term succession strategy.
The $281.6 million agreement with NNPC Limited further underscores Seplat’s strategy of optimising its asset portfolio, strengthening its financial position and enhancing shareholder value while retaining operational control of one of Nigeria’s key upstream oil and gas assets.
