Seplat Energy has signed an agreement with the Nigerian National Petroleum Company (NNPC) Limited to sell a 10 percent stake in the assets held under the NNPCL and Seplat Energy Producing Nigeria Unlimited (SEPNU) joint venture for $281 million.
The company disclosed the transaction in a filing submitted to the Nigerian Exchange (NGX).
Seplat first announced the planned transaction in September 2025.
In its latest update, Seplat Energy said its subsidiaries, Seplat Energy Offshore Limited (SEOL) and SEPNU, signed a legally binding Heads of Agreement with NNPC to sell a 10 percent working interest in the NNPCL/SEPNU joint venture assets. The deal carries a headline value of about $281.6 million.
The company said the commercial terms represent roughly 25 percent of the total acquisition cost and any contingent consideration paid by SEOL when it acquired SEPNU.
Once the transaction is completed, SEPNU will retain a 30 percent stake in the joint venture and continue to operate the assets.
NNPC’s working interest in the joint venture will increase from 60 percent to 70 percent, while Seplat will continue to own all the shares in SEPNU.
Seplat expects to complete the transaction in the second half of 2026, subject to regulatory approvals and the fulfilment of customary closing conditions.
The company said it will allocate the proceeds from the sale in line with its capital allocation strategy.
Seplat plans to use about half of the proceeds to reduce its debt and the remaining half to improve returns for shareholders.
If the transaction is completed, the company intends to distribute about $140 million, equivalent to 23.3 US cents per share, as a cash dividend to shareholders.
The company said this payment will be made in addition to dividends generated from its underlying business performance.
Seplat also plans to repay up to $300 million in gross debt. It repaid $200 million under the Advanced Payment Facility (APF) during the second quarter of 2026, while it expects to settle the remaining $100 million after the transaction closes.
The company said the transaction will not affect the production targets for the NNPCL/SEPNU joint venture in 2026, as current production remains on track. SEPNU currently contributes about 80,000 barrels of oil equivalent per day at the midpoint of Seplat’s production guidance of 135,000 to 155,000 barrels of oil equivalent per day. Assuming an effective transaction date of 1 April 2026, that contribution would reduce to about 65,000 barrels of oil equivalent per day.
Seplat said it will update its production guidance once the transaction is completed.
Chief Executive Officer Roger Brown said Seplat and NNPC remain committed to creating long-term value from the joint venture. He noted that increased development activity since Seplat became operator has strengthened performance and positioned the assets for sustained production growth over the coming years.
Brown also said Seplat’s strong financial position allows the company to use the sale proceeds to reward shareholders and further reduce its debt, creating stronger cash flow potential in the future.
source: www.thecable.ng
African Energy Council