Seplat Energy Plc has entered into a binding agreement to divest a 10 percent working interest in its joint venture assets to the Nigerian National Petroleum Company Limited (NNPCL) in a transaction valued at approximately $281.6 million, while retaining operational control of the assets.
The Nigerian energy company disclosed on Thursday that its subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), had signed a Heads of Agreement with NNPC Limited for the proposed transaction, which is expected to close in the second half of 2026, subject to regulatory approvals and customary completion conditions.
The agreement, which takes effect from April 1, 2026, will reduce SEPNU's working interest in the joint venture from 40 percent to 30 percent, while NNPC Limited's interest will increase from 60 percent to 70 percent.
Despite the change in equity ownership, SEPNU will remain the operator of the joint venture, with Seplat Energy retaining full ownership of the operating company.
"Following completion of the transaction, SEPNU will retain a 30 percent working interest in the joint venture assets and will continue as operator. NNPC Limited's working interest will increase from 60 percent to 70 percent, while Seplat Energy will continue to own 100 percent of the share capital of SEPNU," the company said.
Seplat said proceeds from the transaction will strengthen its financial position, with about half earmarked for debt reduction, while the balance will be returned to shareholders.
Chief Executive Officer Roger Brown described the joint venture as one of Nigeria's key upstream assets, adding that the company remained committed to its long-term partnership with NNPCL.
According to him, the disposal aligns with Seplat's capital allocation strategy by improving financial flexibility, lowering leverage and creating additional value for shareholders.
"We are on a strong financial footing, enabling us to use the proceeds from this transaction to enhance shareholder distributions and further reduce financial leverage, ultimately freeing up future cash flows for shareholders," Brown said.
The agreement concludes discussions first announced in September 2025, when Seplat disclosed that it was exploring the sale of a 10 percent interest in the NNPC/SEPNU joint venture as part of its medium-term capital allocation strategy following its acquisition of Mobil Producing Nigeria Unlimited, now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
The company said the latest agreement formalises those discussions into a binding transaction valued at approximately $281.6 million.
The announcement follows a period of stronger financial performance by Seplat.
For the first quarter of 2026, the company reported a 96 percent increase in dividend to 9.0 U.S. cents per share, while profit after tax rose to $37.9 million, up from $23.3 million recorded in the corresponding period of 2025. Cash generated during the quarter stood at $243.4 million.
For the 2025 financial year, Seplat recorded average production of 131,506 barrels of oil equivalent per day, representing a 148 percent increase, while revenue climbed 144 percent to $2.73 billion, supported by the first full-year contribution from its offshore assets, higher onshore production and expanded gas processing operations.
Subject to completion of the transaction, the company intends to distribute about $140 million of the proceeds 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.
Seplat also reaffirmed its commitment to returning between 40 percent and 50 percent of free cash flow to shareholders between 2026 and 2030, maintaining its target of delivering at least $1 billion in cumulative shareholder distributions over the period.
The agreement adds to a series of corporate developments announced by Seplat in recent months. In April 2026, the company became the first firm listed on the Nigerian Exchange to trade above ₦10,000 per share, while in June 2026, it announced Tony Elumelu as Chairman-designate from January 2027 and appointed Engr. Effiong Okon as Chief Executive Officer with effect from August 1, 2026 as part of its succession plan.
The transaction reflects Seplat's ongoing strategy to optimise its asset portfolio, strengthen its balance sheet and improve shareholder returns while maintaining operational responsibility for one of Nigeria's major upstream oil and gas joint ventures.