Seplat Energy Sells 10% of JV to NNPC for $281.6m

…Earmarked $140m for shareholders

Seplat Energy has agreed to sell a 10 per cent working interest in its NNPCL/Seplat joint venture to NNPC Limited for $281.6 million, and will return about $140 million of the proceeds to shareholders as a transaction dividend.

The sale — which reduces Seplat’s stake to 30 per cent while leaving the company as operator — is expected to have an effective date of 1 April 2026 and to complete in the second half of 2026, the company said in its unaudited half‑year results.

Under the Heads of Agreement signed with NNPC, Seplat will reduce its working interest in the offshore joint venture to 30 percent but will remain the operator, retaining day-to-day control of field operations. The company said the effective date for the transaction is 1 April 2026 and that completion is expected in the second half of 2026.

Seplat estimated the transaction price represents about 25 percent of the gross consideration it paid when acquiring SEPNU. The disclosure appears in the company’s unaudited results for the six months to 30 June 2026.

Management said roughly half of the proceeds will be used to pay down gross debt, with the remainder returned to shareholders as a transaction dividend. Subject to completion, Seplat plans to distribute $140 million to shareholders — about 23.3 US cents per share — in addition to the ordinary dividend from operating performance.

Taken together, Seplat now expects planned dividends for 2026 to total $410 million, or 68.3 US cents per share, after combining the transaction dividend linked to the NNPC sale and the underlying dividend from business performance.

Roger Brown, Seplat’s chief executive officer, noted that the deal, together with continued strong performance, means total dividends for the current financial year “are expected to represent nearly 50 percent of all previous dividends paid to shareholders.”

Analysts say the structure — monetising part of an asset while remaining operator — allows indigenous producers to reduce leverage yet retain control over production decisions. NNPC’s purchase also underscores the state oil firm’s ongoing interest in increasing direct participation in upstream joint ventures with local operators, a trend that has accelerated following exits by several international majors from some onshore and shallow-water assets.

The transaction marks one of Seplat’s more significant portfolio moves this year and will be subject to customary conditions before completion.