LAGOS, July 30 – Seplat Energy Plc, a leading Nigerian energy company has signed a legally binding agreement to sell a 10% working interest in its joint venture assets with the Nigerian National Petroleum Company (NNPC) Limited for approximately $281.6 million, as the company seeks to strengthen its balance sheet and optimise capital allocation.
The transaction was announced in a statement published on Seplat Energy’s official website on 30 July, and reviewed by African Economy Inc.
According to the statement, Seplat’s subsidiaries, Seplat Energy Offshore Limited (SEOL) and Seplat Energy Producing Nigeria Unlimited (SEPNU), have signed a Heads of Agreement with NNPC Limited covering the proposed stake sale.
The transaction involves part of the assets held within the NNPCL-SEPNU Joint Venture and forms part of Seplat’s broader capital allocation strategy.
The agreement has an effective date of 1 April 2026 and is expected to be completed during the second half of 2026, subject to regulatory approvals and other customary closing conditions.
Upon completion, SEPNU’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 reduction in its equity interest, SEPNU will continue to serve as the operator of the joint venture, while Seplat Energy will retain full ownership of SEPNU.
According to the company, “Following completion of the Transaction, SEPNU will retain a 30% working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60% to 70%. Seplat Energy will continue to own 100% of the share capital of SEPNU.”
Commenting on the agreement, Roger Brown, Chief Executive Officer of Seplat Energy, said the partnership remains central to the company’s long-term strategy.
According to Brown, “Seplat Energy is on a strong financial footing enabling us to use the proceeds of this disposal to enhance shareholder distributions and further reduce financial leverage, ultimately freeing up future cash flows for shareholders.”
He added that the joint venture remains one of Nigeria’s most strategically important oil and gas assets, with Seplat and NNPC aligned on its future development plans.
The company said proceeds from the transaction will provide additional financial flexibility, with approximately half of the funds earmarked for debt reduction and the remainder allocated to enhancing shareholder returns.
The proposed sale underscores Seplat’s strategy of maintaining operational control of key upstream assets while strengthening its financial position and creating greater value for shareholders.
