Seplat sells 10% NNPC joint venture stake for $281.6M, plans dividend boost
Seplat Energy Plc signed a binding agreement on July 30, 2026 to sell a 10% working interest in its joint venture assets with NNPC Limited for approximately $281.6 million. Effective date April 1, 2026; completion expected second half of 2026 pending regulatory approvals.
After completion, Seplat’s subsidiary SEPNU’s stake drops from 40% to 30%, while NNPC’s rises from 60% to 70%; SEPNU remains operator and Seplat retains full ownership of SEPNU. Proceeds will be split roughly half for debt reduction and half for shareholder returns, including a planned special dividend of about $140 million (23.3 US cents per share) in addition to regular payouts.
The deal fits Seplat’s capital allocation strategy to optimize its portfolio, strengthen its balance sheet, and increase returns while maintaining operational control of a strategic upstream asset. It follows strong Q1 2026 performance—profit after tax $37.9 million, cash generated $243.4 million—and recent milestones: first NGX-listed stock above N10,000 per share in April 2026, upcoming leadership changes with Tony Elumelu as Chairman from Jan 2027 and Engr. Effiong Okon as CEO from Aug 1, 2026.
Will the anticipated debt reduction and special dividend boost your confidence in Seplat as an investment, or would you prefer the company reinvest more proceeds into production growth?