Seplat Energy Plc has agreed to sell a 10% working interest in its joint venture assets with the Nigerian National Petroleum Company Limited (NNPC Limited) in a transaction valued at approximately $281.6 million, a move aimed at strengthening its balance sheet while maintaining operational control of one of Nigeria's key upstream oil and gas assets.
The Nigerian energy company announced on Thursday that its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), had signed a legally binding Heads of Agreement with NNPC Limited for the sale of the stake.
The agreement covers a portion of the assets within the NNPCL-SEPNU Joint Venture and forms part of Seplat's broader capital allocation strategy designed to improve financial flexibility and enhance shareholder value.
Deal to Reshape Ownership Structure
According to Seplat, the transaction has an effective date of April 1, 2026, and is expected to close during the second half of the year, subject to regulatory approvals and the satisfaction of customary closing conditions.
Upon completion, SEPNU's working interest in the joint venture will decrease from 40% to 30%, while NNPC Limited's stake will increase from 60% to 70%.
Despite reducing its ownership, Seplat emphasized that SEPNU will continue to operate the joint venture and will remain a wholly owned subsidiary of the company.
"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."
The arrangement allows Seplat to monetize part of its investment while retaining operational oversight of the assets.
Proceeds to Fund Debt Reduction and Shareholder Returns
Seplat said proceeds from the transaction will be used to further strengthen its financial position, with approximately half earmarked for debt reduction and the remainder intended for shareholder distributions.
Chief Executive Officer Roger Brown said the transaction reflects the company's confidence in the long-term value of the joint venture and its partnership with NNPC Limited.
"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."
Brown added that the NNPCL-SEPNU Joint Venture remains one of Nigeria's most strategically important oil and gas assets and said Seplat remains aligned with NNPC Limited on future development plans.
Talks Progress from Negotiations to Binding Agreement
The latest announcement represents the culmination of discussions that began several months ago.
In September 2025, Seplat disclosed in a filing with the Nigerian Exchange that it had entered discussions with NNPC Limited regarding the possible sale of a 10% interest in the joint venture. At the time, the company said the move formed part of its medium-term strategy following its acquisition of Mobil Producing Nigeria Unlimited, now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
The newly announced agreement confirms that those negotiations have progressed into a legally binding transaction worth approximately $281.6 million.
Strong Financial Performance Supports Strategy
The disposal comes against the backdrop of a period of strong financial growth for Seplat.
In its first-quarter 2026 financial results, the company reported a 96% increase in its dividend payout to 9.0 U.S. cents per share, while profit after tax rose to $37.9 million from $23.3 million recorded during the corresponding period a year earlier. Cash generated during the quarter reached $243.4 million.
For the 2025 financial year, Seplat delivered substantial operational growth, with group production rising 148% to 131,506 barrels of oil equivalent per day (boepd). Revenue also increased 144% to $2.73 billion, driven largely by the first full-year contribution from the offshore assets acquired through SEPNU, alongside stronger onshore production and expanded gas processing activities.
Subject to completion of the transaction, Seplat plans to distribute about $140 million of the proceeds as a special cash dividend, equivalent to 23.3 U.S. cents per share, in addition to its regular dividend tied to the company's underlying performance.
The company also reaffirmed its commitment to returning between 40% and 50% of free cash flow to shareholders between 2026 and 2030, maintaining its target of delivering at least $1 billion in cumulative shareholder distributions over the five-year period.
Recent Milestones
Seplat has achieved several significant corporate milestones in recent months.
In April 2026, it became the first company listed on the Nigerian Exchange to surpass a share price of ₦10,000, reflecting increased investor confidence following Nigeria's reclassification by FTSE Russell. The rally established Seplat among the exchange's best-performing and most valuable listed companies.
The company also unveiled a major leadership succession plan in June 2026, announcing that Tony Elumelu will assume the role of Chairman from January 2027, while Engr. Effiong Okon is scheduled to become Chief Executive Officer on August 1, 2026.
The proposed $281.6 million transaction with NNPC Limited represents another step in Seplat's strategy of optimizing its asset portfolio, strengthening its financial position and increasing returns to shareholders while retaining operational control of one of Nigeria's most significant upstream oil and gas ventures.