The Nigerian National Petroleum Company Limited (NNPC) has reached an agreement to acquire a 10 percent stake in the NNPCL-SEPNU Joint Venture from Seplat Energy Plc in a transaction valued at $281.6 million. The deal, expected to close in the second half of 2026, marks another strategic move in Nigeria’s oil and gas sector while positioning Seplat for stronger financial performance and improved shareholder value.
According to Seplat’s unaudited financial results for the six months ended June 30, 2026, the transaction value represents approximately 25 percent of the company’s acquisition costs to date. Once completed, the proceeds will be shared equally between a special dividend for shareholders and debt repayment. The company believes the sale will strengthen its balance sheet while increasing total expected dividends for 2026 to 68.3 cents per share, equivalent to about $410 million.
Beyond the landmark transaction, Seplat reaffirmed its production outlook for the year, maintaining guidance of 135,000 to 155,000 barrels of oil equivalent per day, with production currently tracking around the midpoint of that target. The company also retained its capital expenditure forecast of $360 million to $440 million, although spending is expected to accelerate during the second half of the year. However, Seplat adjusted its operating cost guidance upward due to higher restoration expenses at the Yoho offshore field.
The company also delivered an impressive financial performance in the first half of 2026. Revenue climbed 30 percent year-on-year to $1.82 billion, while profit after tax surged by an impressive 498 percent to $164 million. Adjusted EBITDA rose 28 percent to $939 million, and cash generated from operations increased 29 percent to nearly $986 million. In another positive development, Seplat reduced its net debt by 45 percent, bringing it down to $370.7 million after repaying and cancelling $200 million under its Advanced Payment Facility.
Speaking on the results, outgoing Chief Executive Officer Roger Brown described the transaction as a milestone that reinforces Seplat’s long-term growth strategy. He noted that strong commodity prices and disciplined financial management enabled the company to reduce debt while delivering record quarterly dividends to shareholders. Brown, who officially hands over leadership to Effiong Okon on August 1, expressed confidence that the company’s offshore assets and experienced management team will continue driving value creation for investors, host communities, and the broader Nigerian energy industry.
source: Punch
