Seplat Energy sells 10% NNPC JV stake for $281.6m, plans dividend & debt repayment
Seplat Energy Plc has signed a binding Heads of Agreement with the Nigerian National Petroleum Company Ltd (NNPC) to sell a 10% working interest in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture for $281.6 million (₦384.38 billion). The agreement was executed through Seplat's subsidiaries Seplat Energy Offshore Ltd and SEPNU, with an effective date of April 1 and completion expected in the second half of 2026, subject to regulatory approvals and customary conditions.
Upon completion, Seplat will retain a 30% working interest in the joint venture (down from 40%) while continuing as operator, and NNPC's interest will increase from 60% to 70%. Seplat plans to deploy approximately half of the proceeds ($140 million/₦191.1 billion) for a special cash dividend to shareholders—equivalent to 23.3 US cents or ₦318.05 per share—and the balance for debt reduction, including repayment of up to $300 million (₦409.5 billion) in gross debt. The company noted it had already settled $200 million under its Advanced Payment Facility in Q2 2026, with the remaining $100 million to be repaid after closing.
While Seplat said the disposal would not affect the joint venture's 2026 production target, SEPNU's contribution to the group's overall production guidance would decline, prompting a revision of its long-term 2030 production target from 200,000 to 170,000 barrels of oil equivalent per day. Group 2P reserves are projected to decline by about 13% to 872.9 million barrels of oil equivalent upon completion. Seplat's CEO Roger Brown described the JV as "one of Nigeria's most strategic oil assets," emphasizing alignment with NNPC on delivering long-term value and unlocking production potential.
This transaction raises key considerations for stakeholders: Will the special dividend and debt reduction strengthen Seplat's financial position enough to offset the reduced long-term production outlook? For Nigeria's oil sector, does this restructuring of joint venture partnerships enhance value creation while maintaining Seplat's operational control? The deal reflects ongoing efforts to optimize asset portfolios in Africa's largest oil economy.