NNPC to acquire Seplat's 10% JV stake for $281.6m
By Aboki Forex —
Seplat Energy Plc has agreed to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture to the Nigerian National Petroleum Company Limited for $281.6m. The company says the deal will boost shareholder returns and strengthen its balance sheet.
Seplat disclosed the transaction on Thursday in its unaudited financial results for the six months ended June 30, 2026. Completion is expected in the second half of the year.
Transaction details
The headline transaction value of $281.6m represents about 25 per cent of Seplat's acquisition costs to date. Upon completion, the proceeds will be split roughly equally between a special dividend for shareholders and debt repayment.
“The agreement reached with NNPC Limited to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture is expected to further enhance shareholder returns, bringing the total expected dividend for 2026 to USD 68.3 cents/share ($410m),” the company stated.
Seplat added: “Agreement reached to sell a 10% interest in NNPCL-SEPNU JV to NNPC Ltd. The headline transaction value of $281.6m represents 25 per cent of Seplat’s acquisition costs to date. Completion is expected in 2H 2026. Upon completion, proceeds will be split ~50:50 between a transaction dividend and debt repayment.”
Strong first half results
Revenue rose by 30 per cent year-on-year to $1.82bn from $1.398bn. Profit after tax surged by 498 per cent to $164m. Adjusted EBITDA increased by 28 per cent to $939m, while cash generated from operations climbed 29 per cent to $985.9m.
Net debt fell by 45 per cent to $370.7m at the end of June, from $673.3m at the end of 2025. This followed the repayment and cancellation of $200m under its Advanced Payment Facility.
Production guidance for 2026 remains unchanged at between 135,000 and 155,000 barrels of oil equivalent per day, with output tracking towards the midpoint. Capital expenditure guidance stays at between $360m and $440m for the year, weighted towards the second half. However, unit operating cost guidance was revised upward to between $14.5 and $15.5 per barrel of oil equivalent, driven by higher Yoho restoration costs.
CEO comments and transition
Chief Executive Officer Roger Brown said the first-half performance was supported by commodity prices and strong cash generation. “Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200m of our outstanding APF debt, equivalent to 20 per cent of gross debt.”
He also highlighted the dividend: “Our declared quarterly dividend of USD 12.0 cents per share represents a new quarterly high-water mark, up 33 per cent on 1Q 2026 and 161 per cent higher than 2Q 2025.” With the JV sale, total dividends for the current financial year are expected to represent nearly 50 per cent of all previous dividends paid to shareholders.
Brown, who hands over to Effiong on August 1, expressed confidence in the company’s offshore assets. “The performance of our offshore business over the past 18 months has reinforced our conviction in the quality and scale of the opportunity within the portfolio. As I hand over to Effiong, I do so with great confidence.”
For Nigerian businesses and the energy sector, the sale gives NNPC a larger direct stake in a key offshore joint venture and brings $281.6m in dollar proceeds to Seplat. That strengthens shareholder returns and cuts debt, a positive signal for investor confidence in Nigeria’s upstream oil and gas space.