Seplat Energy is expected to complete the sale of a 10 per cent working interest in its joint venture with the Nigerian National Petroleum Company Limited by December, with the transaction expected to reshape the energy firm’s production profile and reserves.
The company disclosed this in an update obtained by The PUNCH on the proposed disposal of Seplat’s interest in the NNPCL/SEPNU Joint Venture for a headline transaction value of approximately $281.6m.
Seplat said its subsidiaries, Seplat Energy Offshore Limited and Seplat Energy Producing Nigeria Unlimited, had signed a legally binding Heads of Agreement with NNPC Limited for the transaction.
The deal is subject to applicable regulatory approvals and other customary conditions, with completion expected in the second half of 2026, meaning the completion is expected between October and December.
Following completion, SEPNU’s working interest in the joint venture assets will fall from 40 per cent to 30 per cent, while NNPC Limited’s interest will increase from 60 per cent to 70 per cent.
Despite the reduction in its stake, Seplat said it would continue to own 100 per cent of SEPNU, which will remain the operator of the joint venture.
“Following completion of the transaction, SEPNU will retain a 30 per cent working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60 per cent to 70 per cent. Seplat Energy will continue to own 100 per cent of the share capital of SEPNU,” Seplat said.
Seplat disclosed that the commercial terms of the $281.6m transaction represent approximately 25 per cent of the gross transaction consideration it paid, together with any contingent consideration payable by SEOL, for its acquisition of SEPNU.
In simple terms, the company is saying that the $281.6m it expects to receive from selling the 10 per cent JV interest is equivalent to about one-quarter of the total consideration it paid to acquire SEPNU, including any additional payment that could become due under the acquisition agreement.
It was shown that the transaction would have a direct impact on Seplat’s attributable production.
The company explained that SEPNU currently represents approximately 80,000 barrels of oil equivalent per day at the midpoint of its 2026 group production guidance of between 135,000 barrels of oil equivalent per day and 155,000 boepd.
With the transaction effective from 1 April 2026, that contribution will fall to approximately 65,000 boepd.
Seplat stated that its production guidance would be updated upon completion of the transaction.
The company’s 2030 production target will also be affected, falling from 200,000 boepd to 170,000 boepd on a net working-interest basis.
However, Seplat said the proceeds from the transaction and the lower capital expenditure associated with the divested interest would largely offset the net cash flow impact of the reduced working interest in the JV assets through 2030.
The transaction will also affect the company’s reserves position, as the disposal would result in group 2P reserves being adjusted down by approximately 13 per cent to 872.9 million barrels of oil equivalent.
It said an updated group 2P reserves figure would be provided following completion of the transaction.
Beyond the immediate impact on production and reserves, Seplat said the disposal would provide funds to support its capital allocation plans.
The company intends to use approximately 50 per cent of the proceeds to reduce debt and the remaining 50 per cent to enhance shareholder returns.
Subject to completion, approximately $140m, equivalent to 23.3 US cents per share, will be paid to shareholders as a cash dividend.
The payment will be made in addition to the underlying business performance dividend.
The company said $200m of its Advanced Payment Facility had already been repaid in the second quarter of 2026, while the remaining $100m would be paid after completion of the transaction.
It was added that the transaction would not change the NNPC/SEPNU JV production targets, which remain supported by production performance year-to-date.
Commenting on the transaction, Seplat Energy’s Chief Executive Officer, Roger Brown, said the joint venture remained strategically important to the company and Nigeria.
“The NNPC/SEPNU JV is one of the pre-eminent licence areas in Nigeria and of strategic importance to the country. Our relations with our partner, NNPC, are strong and we are fully aligned on the agreed work programmes. Together, we are focused on delivering significant value from the JV which has responded very well to increased development activity since we became operator and has clear potential to deliver strong production growth well into the next decade.”