Seplat Energy sells 10% JV stake to NNPC for $281.6 million

Seplat Energy Plc has signed a binding agreement to sell a 10 percent working interest in a major offshore joint venture to the Nigerian National Petroleum Company Ltd. (NNPC) for $281.6 million, the company announced on July 30. The transaction, which has an effective date of April 1, 2026, is expected to be completed in the second half of the year pending regulatory approvals.

Under the terms of the deal, Seplat will sell the stake in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) joint venture, an asset it acquired from Exxon. Upon completion, Seplat's working interest will reduce to 30 percent, while NNPC's interest will increase from 60 percent to 70 percent. Seplat will remain the operator of the venture and retain 100 percent ownership of SEPNU's share capital.

The company plans to allocate the proceeds equally between shareholder returns and debt reduction. Approximately $140 million is earmarked for a special cash dividend to be distributed upon the transaction's closure, in addition to Seplat's regular dividend. The remaining proceeds will be used for debt repayment, including settling the remaining $100 million balance of an Advanced Payment Facility. The...