Seplat Energy has revealed that it is in discussions with the Nigerian National Petroleum Company Limited (NNPC) regarding the possible sale of a 10% interest in the NNPC/SEPNU Joint Venture (JV).
The update was shared in a filing on the Nigerian Exchange (NGX), providing investors with insights into the company’s medium-term strategy following its acquisition of Mobil Producing Nigeria Unlimited, now Seplat Energy Producing Nigeria Unlimited (SEPNU).
If the discussions are finalized, SEPNU would hold a 30% stake in the Joint Venture and NNPC 70%, with Seplat continuing as the operator.
However, the discussions are still ongoing and will remain subject to both parties reaching a mutual agreement on the terms and the successful execution of a formal deal.
The filing also includes presentations for Seplat’s Capital Markets Day, scheduled for 18 September 2025, introducing the company’s five-year operational targets and a new dividend policy designed to return 40%–50% of Free Cash Flow (FCF) to investors over the 2026–2030 period.
Based on the company’s five-year forecast, this could result in cumulative cash dividends of $1.0 billion, supported by a minimum annual payout of $120 million (20 cents per share), assuming Brent crude averages above $50 per barrel.
Seplat further outlined additional efficiency and growth targets over the next five years, designed to drive significant value for both the company and its shareholders.
Seplat’s 5-year growth plan
At its Capital Markets Day, scheduled for 18 September 2025, Seplat Energy will announce new targets for 2026–2030, aiming to grow production to around 200,000 boepd by 2030, a 50% increase from mid-2025.
Seplat expects to generate US$5–6 billion in cash flow over the period, supported by increased capital spending and ongoing operational and financial efficiencies, representing 2.5–3 times growth compared with the previous five years.
The company plans to invest US$2.5–3 billion, including drilling 120–150 new wells and sanctioning up to three gas projects. At the same time, it aims to reduce operating costs from $12.5/boe to $10/boe through cost optimization and higher production volumes.
A strong balance sheet supports the plan, with net leverage expected to stay between 0.5x and 1.5x, assuming oil prices remain above $50 per barrel.
All targets are based on long-term assumptions of $65/bbl for crude, $39/bbl for NGL/LPG, and $2.75/mcf for gas, positioning Seplat for disciplined growth over the next five years.
The report also included an updated Competent Person’s Report (CPR), which provides revised estimates for Seplat’s offshore assets and independently confirms the company’s reserve and resource outlook.
Offshore asset estimates
Seplat also included a new Competent Person’s Report (CPR) commissioned from Ryder Scott Company, L.P., in its filing, updating offshore asset estimates following the December 2024 acquisition.
The report confirms significant increases in reserves and resources compared with previous assessments.
- For offshore assets alone, 2P reserves rose 40% to 551.7 MMboe, while 2C resources jumped 378% to 1,178.2 MMboe. Combined 2P and 2C figures increased 170% to 1,729.9 MMboe.
- On a group-wide basis, 2P reserves grew 18% to 1,043.2 MMboe, 2C resources surged 282% to 1,262.0 MMboe, and total 2P plus 2C reserves and resources increased 89% to 2,305.2 MMboe.
The report only looks at the new offshore assets, while Seplat’s onshore reserves stay the same.
