Seplat Energy Plc has agreed to sell a 10 per cent participating interest in its joint venture with the Nigerian National Petroleum Company Limited for $281.6 million as the indigenous energy firm moves to strengthen its balance sheet and boost shareholder returns.
The company disclosed the transaction in a regulatory filing to the Nigerian Exchange on Thursday alongside its unaudited financial results for the first half of 2026.
According to Seplat, the deal with NNPC Limited is expected to be completed before the end of 2026 and forms part of its portfolio optimisation strategy following the acquisition of Mobil Producing Nigeria Unlimited’s shallow-water assets.
Seplat said the proceeds from the sale would be shared equally between debt repayment and additional shareholder distributions.
The company expects total shareholder distributions for 2026 to increase to 68.3 US cents per share, equivalent to about $410 million, advancing its target of returning $1 billion to shareholders between 2026 and 2030.
The announcement came as Seplat reported stronger operational and financial performance for the six months ended June 30, 2026.
Cash generated from operations rose by 29 per cent year-on-year to $985.9 million, while revenue climbed 30 per cent to $1.82 billion, supported by higher production and favourable crude oil prices.
Average production increased to 139,509 barrels of oil equivalent per day, up four per cent from the corresponding period in 2025, with second-quarter output rising to 149,070 barrels per day.
The company attributed the production growth to stronger onshore operations, while offshore production remained stable and natural gas liquids output more than doubled during the period.
Profit after tax rose to $164 million, while earnings before interest, taxes, depreciation and amortisation increased by 28 per cent to $939 million.
Seplat also strengthened its financial position by reducing net debt by 45 per cent to $370.7 million after repaying and cancelling $200 million under its Advanced Payment Facility.
Cash at bank increased to $433.8 million, excluding restricted cash, giving the company greater financial flexibility for future investments.
Operationally, Seplat restored 24 idle wells, adding about 26,000 barrels per day of gross joint venture production capacity, while maintaining 18.8 million man-hours without a lost-time injury.
The company also reported an 18 per cent reduction in carbon emissions intensity, with onshore operated emissions falling by 37 per cent as part of its environmental sustainability programme.
Despite revising its unit operating cost guidance upward due to higher restoration costs on the Yoho asset, Seplat retained its full-year production target of between 135,000 and 155,000 barrels of oil equivalent per day and capital expenditure guidance of $360 million to $440 million.
The company declared a quarterly dividend of 12 US cents per share, comprising a five-cent core dividend and a seven-cent special dividend.
Commenting on the results, Seplat Chief Executive Officer Roger Brown said the company entered the second half of 2026 from a position of strength, adding that the planned stake sale would unlock additional value while supporting higher shareholder returns.
Brown, who will step down on August 1, said incoming CEO Effiong Okon would build on the company’s momentum and drive its next phase of growth.
Seplat also announced that Tony Elumelu will succeed Senator Udoma Udo Udoma as Chairman of the Board from January 1, 2027, while Independent Non-Executive Director Dr Emma FitzGerald will retire at the end of 2026.
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