Seplat to sell 10% stake in NNPCL joint venture for $281.6 million

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.

The Nigerian energy company disclosed the transaction in a statement issued on July 30 and published on its official website, 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 for the stake sale.

The transaction involves a portion of the assets held within the NNPCL-SEPNU joint venture and forms part of Seplat’s broader capital allocation strategy.

What they are saying

Seplat said the transaction has an effective date of April 1, 2026, and is expected to be completed in the second half of 2026, subject to regulatory approvals and other customary conditions.

If completed, SEPNU’s stake in the joint venture will reduce from 40% to 30%, while NNPC Limited’s stake will increase from 60% to 70%. Despite the reduced stake, SEPNU will remain the operator of the joint venture, and Seplat will continue to own 100% of SEPNU.

The company stated:

• “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 deal, Roger Brown, Chief Executive Officer of Seplat Energy, said the joint venture remains one of Nigeria’s most strategically important oil and gas assets and that the company is aligned with NNPC on future development plans.

• “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 transaction is expected to provide Seplat with additional financial flexibility while allowing it to retain operational control of the joint venture. The company plans to use the proceeds to reduce debt and increase shareholder returns, with roughly half of the funds earmarked for each purpose.

Get up to speed 

The agreement announced on Thursday marks the latest step in a transaction that has been in the works for several months.

• In September 2025, Seplat Energy disclosed in a filing on the Nigerian Exchange that it was in discussions with NNPC Limited over the possible sale of a 10% interest in the NNPCL/SEPNU Joint Venture.

At the time, the company said the talks were part of its medium-term strategy following the acquisition of Mobil Producing Nigeria Unlimited, now Seplat Energy Producing Nigeria Unlimited (SEPNU).

The latest announcement confirms that those discussions have now advanced into a legally binding agreement, with the proposed transaction valued at approximately $281.6 million.

The deal also comes after a period of strong financial performance for Seplat.

• In its first-quarter 2026 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 a year earlier. Cash generated during the quarter reached $243.4 million.
• For the 2025 financial year, Seplat recorded significant growth, with group production increasing 148% to 131,506 barrels of oil equivalent per day (boepd) and revenue rising 144% to $2.73 billion. The performance reflected the first full-year contribution of the offshore assets acquired through SEPNU, alongside stronger onshore production and expanded gas processing operations.

Against that backdrop, Seplat said it intends to use the proceeds from the transaction to reduce debt and increase shareholder returns. Subject to completion, the company plans to distribute about $140 million of the proceeds as a 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 40–50% of free cash flow to shareholders between 2026 and 2030, saying it remains on track to deliver at least $1 billion in cumulative shareholder distributions over the period.

What you should know

Seplat Energy has recorded several major corporate milestones in recent months.

• In April 2026, the company became the first listed company on the Nigerian Exchange to surpass N10,000 per share, reflecting strong investor confidence following Nigeria’s reclassification by FTSE Russell. The stock rallied sharply during the period, making Seplat one of the best-performing and most valuable companies on the exchange.
• The company also announced a major leadership transition in June 2026, naming Tony Elumelu as its next Chairman effective January 2027. It further appointed Engr. Effiong Okon as Chief Executive Officer effective August 1, 2026, as part of a broader succession plan aimed at supporting its next phase of growth.

The latest $281.6 million transaction with NNPC Limited adds to Seplat’s ongoing strategy of optimising its asset portfolio, strengthening its balance sheet, and increasing returns to shareholders while maintaining operational control of one of Nigeria’s most important upstream oil and gas ventures.