NNPC buys 10% JV stake from Seplat for $281.6m

SEPLAT Energy Plc has agreed to divest a 10 percent working interest in the NNPCL/Seplat Joint Venture to NNPC Limited in a transaction valued at $281.6 million, while retaining operatorship of the assets.

The agreement, executed through a legally binding Heads of Agreement, forms part of the company’s portfolio optimisation strategy. Seplat said the transaction value represents about 25 percent of the gross consideration it paid to acquire Seplat Energy Producing Nigeria Unlimited (SEPNU), based on its internal estimate.

Following completion of the deal, Seplat will continue to operate the joint venture with a 30 percent working interest, ensuring it remains responsible for the day-to-day management of the assets. The transaction has an effective date of April 1, 2026, with completion expected in the second half of the year (H2).

The company plans to use the proceeds to strengthen its balance sheet while rewarding shareholders. About 50 percent of the sale proceeds will be used to reduce gross debt, while the remaining half will fund a special transaction dividend.

READ ALSO: Elumelu to chair Seplat Energy as Okon emerges CEO

Subject to the completion of the transaction, Seplat intends to distribute $140 million to shareholders, equivalent to 23.3 cents per share. The special payout will be made in addition to the company’s regular dividend arising from its operating performance.

As a result, Seplat expects total shareholder distributions for the 2026 financial year to reach $410 million, or 68.3 cents per share, combining the proposed transaction dividend with the ordinary dividend.

Commenting on the development, Seplat Energy Chief Executive Officer, Mr Roger Brown, said the company’s strong operating performance, together with the asset sale, would lift shareholder returns significantly.

He said dividends expected to be paid in the current financial year would amount to nearly 50 percent of all dividends distributed by the company since its listing.

The announcement was made alongside Seplat’s unaudited results for the six months ended June 30, 2026, and represents one of the company’s most significant strategic transactions this year. The acquisition also expands NNPC Limited’s participation in upstream joint venture assets as the national oil company continues to deepen its involvement following the exit of several international oil companies from Nigeria’s onshore and shallow-water operations.