Seplat Energy is on course to complete the sale of a 10 per cent working interest in its joint venture with the Nigerian National Petroleum Company Limited (NNPC Limited) before the end of December 2026, in a landmark transaction valued at approximately $281.6 million. The deal marks a significant step in the company’s long-term strategy, balancing operational efficiency with stronger financial flexibility. While the transaction will reduce Seplat’s production and reserve figures, the company believes it will create lasting value for investors through debt reduction and improved shareholder rewards.
According to an official company update, Seplat subsidiaries—Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU)—have signed a legally binding Heads of Agreement with NNPC Limited for the sale. Subject to regulatory approvals and other customary conditions, the transaction is expected to close during the second half of 2026. Once completed, SEPNU’s working interest in the joint venture will decrease from 40 per cent to 30 per cent, while NNPC Limited’s stake will increase from 60 per cent to 70 per cent. Despite the reduced ownership, Seplat will continue to own 100 per cent of SEPNU, which will remain the operator of the joint venture.
The sale is expected to reshape Seplat’s production outlook. The company revealed that SEPNU currently contributes around 80,000 barrels of oil equivalent per day (boepd) to its projected 2026 production guidance of between 135,000 and 155,000 boepd. Following the effective date of April 1, 2026, that contribution will decline to approximately 65,000 boepd. As a result, Seplat’s long-term production target for 2030 will also be revised downward from 200,000 boepd to 170,000 boepd on a net working-interest basis. The company also confirmed that its proven and probable (2P) reserves will reduce by about 13 per cent to approximately 872.9 million barrels of oil equivalent after the transaction is completed.
Despite these adjustments, Seplat maintains that the financial benefits of the deal will outweigh the operational impact. The proceeds from the transaction, combined with lower capital expenditure linked to the divested stake, are expected to largely offset any reduction in cash flow through 2030. Seplat plans to use half of the proceeds to further reduce its debt burden, while the remaining 50 per cent will be returned to shareholders. Subject to completion, investors are expected to receive a special cash dividend of approximately $140 million, equivalent to 23.3 US cents per share, in addition to the company’s regular business performance dividend. The company also disclosed that it has already repaid $200 million of its Advanced Payment Facility, with the remaining $100 million scheduled for repayment after the transaction closes.
Commenting on the agreement, Seplat Energy Chief Executive Officer Roger Brown described the NNPC/SEPNU joint venture as one of Nigeria’s most strategic energy assets, emphasizing the strong partnership between Seplat and NNPC. He expressed confidence that ongoing development activities would continue to drive production growth well into the next decade, even after the ownership restructuring. Brown noted that the transaction reflects Seplat’s commitment to strengthening its financial position while maintaining operational excellence, positioning the company for sustainable growth in Nigeria’s evolving energy sector.
source: punch
