Seplat Energy Plc has announced an agreement to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture to the Nigerian National Petroleum Company Limited for $281.6m, saying the transaction is expected to enhance shareholder returns and strengthen its balance sheet.
The company disclosed this on Thursday in its unaudited financial results for the six months ended June 30, 2026, noting that the deal is due to be completed in the second half of the year.
According to Seplat, the headline transaction value of $281.6m represents about 25 per cent of its acquisition costs to date. It added that, upon completion, the proceeds would be split approximately 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.
Providing further details, Seplat said, “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.”
The company said its 2026 production guidance remains unchanged at between 135,000 and 155,000 barrels of oil equivalent per day, adding that production is tracking towards the midpoint of the range.
It also retained its capital expenditure guidance of between $360m and $440m for the year, although spending is expected to be weighted towards the second half of 2026.
Seplat, however, revised its unit operating cost guidance upward to between $14.5 and $15.5 per barrel of oil equivalent, saying the increase was driven by higher Yoho restoration costs.
The transaction announcement came as the company reported strong financial performance for the first half of 2026. Revenue rose by 30 per cent year-on-year to $1.82bn from $1.398bn, while 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.
The company also reduced its net debt by 45 per cent to $370.7m at the end of June from $673.3m at the end of 2025 after repaying and cancelling $200m under its Advanced Payment Facility.
Commenting on the results, Seplat’s Chief Executive Officer, Roger Brown, said the company’s offshore assets had strengthened its confidence in the portfolio and positioned it for the next phase of growth.
“Our first-half performance benefited from a supportive commodity price environment, translating into 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. At the same time, robust cash flows enabled us to continue enhancing shareholder returns.
“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 continued strong business performance and the announced sale of a 10 per cent interest in our offshore JV to NNPC Limited, it means that total dividends paid for the current financial year are expected to represent nearly 50 per cent of all previous dividends paid to shareholders,” Brown stated.
Brown, who will hand over as chief executive on August 1, said the company’s offshore business had reinforced confidence in the quality and scale of its assets.