Key points
- Seplat Energy will sell a 10 per cent working interest in the SEPNU Joint Venture to NNPC Ltd. for $281.6 million.
- About half of the proceeds will reduce debt, while shareholders will receive a special cash dividend of about $140 million.
- NNPC Ltd.’s stake will increase to 70 per cent, while Seplat’s working interest will reduce to 30 per cent.
Main story
Seplat Energy Plc has signed a binding Heads of Agreement with the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) to sell a 10 per cent working interest in the NNPCL/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture for $281.6 million.
The agreement, executed through Seplat Energy Offshore Ltd. and Seplat Energy Producing Nigeria Unlimited, remains subject to regulatory approvals and other customary conditions, with completion expected in the second half of 2026. The transaction takes effect from April 1.
Following completion, NNPC Ltd.’s working interest in the joint venture will increase from 60 per cent to 70 per cent, while SEPNU will retain a 30 per cent working interest and continue as operator. Seplat Energy will also retain full ownership of SEPNU’s share capital.
The company said approximately half of the transaction proceeds would be used to reduce debt, while the remainder would be returned to shareholders. This includes a special cash dividend of about $140 million, equivalent to 23.3 US cents per share, in addition to the company’s regular dividend.
Seplat also plans to repay up to $300 million in gross debt. It said $200 million under its Advanced Payment Facility had already been repaid during the second quarter of 2026, with the remaining $100 million to be settled after the transaction closes.
While the disposal will not affect the joint venture’s 2026 production target, Seplat said SEPNU’s contribution to group production would decline. The company also revised its 2030 production target to 170,000 barrels of oil equivalent per day from 200,000 boepd and said its 2P reserves would reduce by about 13 per cent to 872.9 million barrels of oil equivalent after completion.
The issues
The transaction reflects Seplat’s strategy of strengthening its balance sheet while maintaining operatorship of one of Nigeria’s largest upstream joint ventures. Increasing NNPC Ltd.’s stake could further consolidate the national oil company’s position in key producing assets, while Seplat redirects capital towards debt reduction and shareholder returns without exiting the partnership.
What’s being said
“The NNPCL/SEPNU Joint Venture is one of Nigeria’s most strategic oil assets.” — Roger Brown, Chief Executive Officer, Seplat Energy.
“We remain aligned with NNPC Ltd. on delivering value from the joint venture and unlocking its long-term production potential.” — Roger Brown, Chief Executive Officer, Seplat Energy.
“Seplat’s strong financial position would enable it to use the proceeds to reward shareholders, reduce leverage and strengthen future cash flows.” — Roger Brown, Chief Executive Officer, Seplat Energy.
What’s next
The transaction will proceed through regulatory approvals and customary closing conditions before completion, expected in the second half of 2026. Seplat will then implement its planned debt reduction, distribute the special dividend and update its production and reserves profile.
Bottom line
The deal allows Seplat to monetise part of a major upstream asset while preserving operational control, improving its balance sheet and returning capital to shareholders, as NNPC strengthens its ownership in one of Nigeria’s key oil-producing joint ventures.
 to sell a ...){kind=link}