Seplat Energy Plc has announced a major strategic move after agreeing to sell a 10 percent working interest in its NNPCL-SEPNU joint venture to NNPC Limited in a deal valued at $281.6 million. The transaction will reduce Seplat’s stake in the venture from 40 percent to 30 percent while allowing the company to retain its role as the operator responsible for overseeing day-to-day field operations. According to the company’s unaudited half-year financial results ending June 30, 2026, the sale is expected to be completed in the second half of the year, with an effective date of April 1, 2026.
The energy company said the proceeds from the transaction will be used to reward shareholders and further strengthen its financial position. Seplat plans to split the funds equally between reducing debt and paying a special transaction dividend. Subject to the successful completion of the deal, shareholders are expected to receive a $140 million transaction dividend, equivalent to 23.3 US cents per share, in addition to the company’s regular dividend. This would increase Seplat’s total planned dividend payout for 2026 to $410 million, or 68.3 US cents per share, marking one of the company’s most generous shareholder reward packages to date.
Beyond the landmark transaction, Seplat delivered an impressive financial performance in the first half of 2026. Revenue climbed sharply to $1.82 billion, up from $1.398 billion in the same period last year, while profit after tax surged by an impressive 498 percent to $164 million. The company also generated nearly $986 million in operating cash flow and reduced its net debt by 45 percent to $370.7 million, reflecting stronger financial discipline and the benefits of favourable global oil prices.
Operationally, Seplat continued to post steady growth. Average production rose to 139,509 barrels of oil equivalent per day (boepd) during the first half of the year, with second-quarter output reaching 149,070 boepd. The company credited the improvement to its successful idle well restoration programme, which restored 24 wells and added approximately 26,000 barrels per day of gross joint venture production capacity. Seplat also maintained an impressive safety record, reporting 18.8 million man-hours without a lost-time injury, while reducing its carbon emissions intensity by 18 percent through its End of Routine Flaring programme.
Seplat also confirmed significant leadership changes as Chief Executive Officer Roger Brown prepares to hand over the reins to Effiong Okon on August 1, 2026, while Tony O. Elumelu will become chairman from January 2027. Brown described the first-half performance as one of the company’s strongest, highlighting robust cash generation, lower debt, and growing production. He noted that the sale of the additional stake to NNPC Limited positions Seplat for long-term growth while delivering exceptional value to shareholders, with total dividends for 2026 expected to account for nearly half of all dividends the company has paid since its inception.
source: Leadership
