THUR JULY 30 2026-theGBJournal| Seplat Energy Plc has agreed to sell a 10% working interest in its joint venture with Nigerian National Petroleum Company Limited (NNPC Ltd.) for about $281.6 million, with roughly half of the proceeds earmarked for a special shareholder payout and the balance for debt reduction, strengthening the energy producer’s balance sheet while retaining operatorship of the assets.
In a corporate disclosure filed on the Nigerian Exchange on Thursday, Seplat said subsidiaries Seplat Energy Offshore Ltd. (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU) signed a legally binding Heads of Agreement with NNPC Ltd. covering the sale of the stake in the NNPCL-SEPNU joint venture.
The transaction values the disposal at approximately 25% of the gross consideration, including contingent payments, that Seplat paid to acquire SEPNU.
Following completion, expected in the second half of 2026 subject to regulatory approvals and customary conditions, SEPNU will retain a 30% working interest in the venture and continue as operator, while NNPC’s interest will rise to 70% from 60%.
Seplat will continue to own 100% of SEPNU’s share capital.
For investors, Seplat said the proceeds will be deployed under its capital allocation framework, with around 50% allocated to debt reduction and the remaining 50% returned to shareholders.
The company expects to distribute about $140 million, equivalent to 23.3 U.S. cents per share, as a cash dividend in addition to its regular dividend linked to underlying business performance.
Seplat also targets repayment of up to $300 million of gross debt. Of that amount, $200 million under its Advanced Payment Facility was repaid during the second quarter of 2026, while the remaining $100 million is scheduled to be repaid after the transaction closes.
The company said the disposal will not affect year-to-date production from the NNPCL-SEPNU joint venture.
SEPNU currently contributes about 20,000 barrels of oil equivalent per day at the midpoint of Seplat’s 2026 production guidance of 135,000-155,000 boepd.
Assuming an effective transaction date of April 1, 2026, that contribution would reduce to about 65,000 boepd, with updated guidance to be issued after completion.
Seplat added that the transaction proceeds, combined with lower capital expenditure associated with the reduced working interest, are expected to broadly offset the lower net cash flow from the divested interest through 2030.
The disposal will also reduce the group’s proved and probable (2P) reserves by about 13% to 872.9 million barrels of oil equivalent, based on its latest reserves update. A revised reserves statement will be published after completion.
Chief Executive Officer Roger Brown said Seplat’s financial position allows it to use the disposal proceeds to increase shareholder returns while further deleveraging the balance sheet.
“The company 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 said.
He added that the NNPCL-SEPNU joint venture remains one of Nigeria’s most strategic upstream assets, with Seplat and NNPC fully aligned on future development programmes.
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