Divestment Details and New Ownership Structure
Seplat Energy Plc has signed a binding Heads of Agreement with the Nigerian National Petroleum Company Ltd (NNPC) to sell a 10 per cent working interest in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture. The transaction is valued at $281.6 million (₦384.38 billion) and was disclosed in a corporate filing with the Nigerian Exchange Ltd on Thursday, July 31, 2026.
The agreement was executed through Seplat's subsidiaries, Seplat Energy Offshore Ltd and SEPNU. The transaction remains subject to regulatory approvals and other customary conditions, with completion expected in the second half of 2026. The effective date of the transaction is April 1, 2026.
Upon completion, Seplat will retain a 30 per cent working interest in the joint venture and continue as the operator, while NNPC’s interest will increase from 60 per cent to 70 per cent. Seplat will also continue to own 100 per cent of the share capital of SEPNU.
Debt Reduction and Special Dividends for Shareholders
Seplat plans to deploy the transaction proceeds in line with its capital allocation strategy, splitting the funds between debt reduction and enhanced shareholder returns. About $140 million (₦191.1 billion), equivalent to 23.3 US cents (₦318.05) per share, will be distributed as a special cash dividend to shareholders upon completion, in addition to its regular dividend.
The company also plans to repay up to $300 million (₦409.5 billion) in gross debt. Of this amount, $200 million (₦273 billion) under its Advanced Payment Facility was already settled in the second quarter of 2026, while the remaining $100 million (₦136.5 billion) will be repaid after the transaction closes.
Long-Term Production Targets and Reserves Adjustments
The disposal will not affect the joint venture’s 2026 production target, although SEPNU’s contribution to the group’s overall production guidance will decline following the transaction. Consequently, Seplat's long-term production target for 2030 will be revised to 170,000 barrels of oil equivalent per day (boepd) from 200,000 boepd.
Additionally, group 2P reserves will decline by approximately 13 per cent to 872.9 million barrels of oil equivalent upon completion. Commenting on the transaction, Roger Brown, Chief Executive Officer of Seplat Energy, described the NNPC/SEPNU Joint Venture as one of Nigeria’s most strategic oil assets.
Brown stated that the company remains aligned with NNPC on delivering value from the joint venture and unlocking its long-term production potential. He added that Seplat’s strong financial position would enable it to use the proceeds to reward shareholders, reduce leverage, and strengthen future cash flows.
