Seplat Energy Plc has agreed to sell a 10 per cent working interest in its joint venture assets with NNPC Limited for $281.6 million, in a move aimed at reducing debt and increasing returns to shareholders.
The company said it has signed a legally binding Heads of Agreement with NNPC Limited for the transaction. The deal is valued at $281.6 million, representing about 25 per cent of the amount Seplat paid to acquire SEPNU, based on the company’s estimate.
Following the transaction, Seplat will retain a 30 per cent working interest in the joint venture and will continue to operate the assets.
The company said the transaction takes effect from April 1, 2026, while completion is expected in the second half of the year, subject to the necessary approvals.
Speaking on the development, the Chief Executive Officer of Seplat Energy, Roger Brown, said the company’s strong financial performance and the sale of the stake would significantly increase returns to shareholders.
“With continued strong business performance and the announced sale of a 10 per cent interest in our offshore joint venture to NNPC Limited, total dividends paid for the current financial year are expected to represent nearly 50 per cent of all previous dividends paid to shareholders,” Brown said.
Seplat said about half of the proceeds from the sale will be used to reduce the company’s debt, while the remaining half will be distributed to shareholders as a special transaction dividend.
Subject to the successful completion of the deal, the company plans to pay shareholders a transaction dividend of $140 million, equivalent to 23.3 cents per share.
The payment will be in addition to the company’s regular dividend declared from its business operations.
According to Seplat, total dividends for the 2026 financial year are now expected to reach $410 million, or 68.3 cents per share.
The announcement formed part of the company’s unaudited financial results for the six months ended June 30, 2026.
Industry analysts say the transaction allows Seplat to unlock value from part of its investment while retaining operational control of the assets. The move also strengthens the company’s balance sheet through debt reduction while rewarding shareholders with higher dividend payments.
The acquisition also reflects NNPC Limited’s continued investment in upstream oil and gas assets as it expands its participation in joint ventures with indigenous operators following the exit of several international oil companies from Nigeria’s onshore and shallow-water operations.