Seplat Energy Plc has agreed to sell a 10% working interest in its joint venture with the Nigerian National Petroleum Company Limited (NNPC Limited) for approximately $281.6 million.
The company disclosed on Thursday that its 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 transaction expected to be completed in the second half of the year.
Upon completion, Seplat Energy’s working interest in the joint venture will decline from 40% to 30%, while NNPC Limited’s stake will increase from 60% to 70%. Despite the reduced equity interest, Seplat will remain the operator of the joint venture, with Seplat retaining full ownership of the subsidiary.
Seplat CEO Roger Brown described the joint venture as one of Nigeria’s most strategically important oil and gas assets, adding that the company remains closely aligned with NNPC Limited on future development plans.
He added Seplat’s strong financial position would allow it to deploy the proceeds from the sale to enhance shareholder distributions and further reduce debt, ultimately improving future cash flows available to investors.
The company intends to split the proceeds broadly between deleveraging and shareholder returns. Subject to the completion of the sale, Seplat plans to distribute about $140 million as a special cash dividend, equivalent to 23.3 U.S. cents per share, in addition to its regular dividend linked to underlying business performance.
For the 2025 financial year, Seplat reported a 144% increase in revenue to $2.73 billion, while production surged 148% to 131,506 barrels of oil equivalent per day (boepd).
Why Deal Matters
The transaction represents a shift in Seplat’s capital allocation strategy rather than a retreat from the asset. By selling only a minority portion of its interest while retaining operatorship, the company is unlocking value from mature assets without relinquishing operational control. The decision also strengthens NNPC Limited’s ownership position, potentially reinforcing alignment between the national oil company and its operating partner.
The move also signals Seplat management’s confidence that future cash generation from the remaining 30% stake will continue to support earnings despite the reduced equity interest.
