Seplat Energy Plc has signed a binding agreement to sell a 10% working interest in the NNPCL-Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture to the Nigerian National Petroleum Company (NNPC) Limited for US$281.6 million. The transaction forms part of Seplat’s capital optimisation strategy and remains subject to regulatory approvals and customary closing conditions, with completion expected in the second half of 2026.
Following the completion of the transaction, NNPC Ltd’s participating interest in the joint venture will increase from 60% to 70%, while SEPNU’s interest will reduce from 40% to 30%. Despite the reduction in its ownership stake, Seplat will continue to serve as the operator of the joint venture and retain full ownership of SEPNU, ensuring continuity in operations and project execution.
Seplat disclosed that the proceeds from the sale will be deployed in accordance with its capital allocation framework. Approximately 50% of the funds will be used to reduce outstanding debt, while the remaining half will be distributed to shareholders through a special transaction dividend. The company also plans to repay up to US$300 million in gross debt, having already repaid US$200 million of its Advanced Payment Facility during the second quarter of 2026.
According to Seplat, the transaction will not affect the joint venture’s 2026 production targets, although the company’s net production entitlement and reserves will decline after completion. The company stated that reduced capital expenditure requirements associated with the divested interest will largely offset the lower working interest, helping preserve shareholder value and strengthen future cash flows.
Commenting on the agreement, Seplat Energy’s Chief Executive Officer, Roger Brown, described the NNPCL-SEPNU Joint Venture as one of Nigeria’s most strategic upstream assets. He noted that the transaction reflects Seplat’s disciplined financial strategy, allowing the company to improve shareholder returns, strengthen its balance sheet, reduce leverage, and maintain financial flexibility for future growth opportunities.
The agreement follows Seplat’s acquisition of ExxonMobil’s former Nigerian shallow-water assets and represents another step in optimising its expanded portfolio. Industry analysts believe the transaction enables Seplat to unlock value from the acquired assets while maintaining operational control and reinforcing its long-term partnership with NNPC.
For NNPC Ltd, the acquisition increases its participation in one of Nigeria’s key offshore oil and gas assets and supports its strategy of expanding upstream production and strengthening energy security. The increased ownership is expected to facilitate continued investment in field development, improve production efficiency, and enhance long-term value creation within Nigeria’s petroleum sector.
Overall, the transaction highlights the ongoing transformation of Nigeria’s upstream oil and gas industry, where strategic partnerships between indigenous operators and NNPC are being leveraged to optimise asset performance, improve financial resilience, and sustain investment in the country’s energy sector.
