Seplat Energy has announced a major milestone in Nigeria’s oil and gas sector after signing a $281.6 million agreement with the Nigerian National Petroleum Company (NNPC) Limited to sell a 10% working interest in the assets of their joint venture. The transaction, first revealed in September 2025, was confirmed in a filing to the Nigerian Exchange (NGX) on Thursday, reinforcing Seplat’s long-term strategy of strengthening its financial position while maintaining operational leadership in the venture.
Under the legally binding agreement, Seplat Energy’s subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), will transfer the 10% working interest to NNPC. Once the transaction receives the required regulatory approvals and reaches completion in the second half of 2026, NNPC’s stake in the joint venture will increase from 60% to 70%. Despite the sale, SEPNU will retain a 30% interest and continue to serve as the operator of the joint venture, ensuring continuity in production and field development.
The company also revealed how it intends to use the proceeds from the sale. Approximately half of the funds will go toward reducing outstanding debt, while the remaining 50% will be returned to shareholders through enhanced dividends. Seplat disclosed that about $140 million, equivalent to 23.3 US cents per share, is expected to be distributed as a special cash dividend in addition to its regular dividend. The company also plans to reduce up to $300 million in gross debt, strengthening its balance sheet and improving future cash flow.
Although the transaction will reduce Seplat’s share of production from the joint venture, the company emphasized that its overall production guidance for 2026 remains intact. The NNPCL/SEPNU joint venture is projected to continue delivering strong output, with Seplat noting that the assets remain among the most strategic oil and gas licences in Nigeria. The company expects updated production guidance after the transaction is finalized, but remains confident that ongoing development activities will support long-term growth.
Speaking on the agreement, Seplat Energy Chief Executive Officer Roger Brown described the joint venture as one of Nigeria’s most valuable energy assets and praised the strong partnership with NNPC. He noted that both companies are aligned on future development plans aimed at increasing production over the coming years. Brown added that Seplat’s healthy financial position makes it possible to reward shareholders while simultaneously lowering debt, a move expected to create greater value and stronger financial performance in the years ahead.
SOURCE: The cable
