Seplat Energy has agreed to sell a stake in one of its joint ventures with the Nigerian National Petroleum Company Limited, in a transaction that reshapes the ownership of the partnership. The agreement covers a 10 per cent working interest in the joint venture and marks a notable move in Nigeria's oil and gas sector.
According to the terms disclosed, Seplat is selling the 10 per cent working interest for about 281.6 million dollars. The transaction is subject to regulatory approvals, meaning it must clear the relevant authorities before it can be finalised rather than taking effect immediately.
The deal is expected to be completed in the second half of the year. That timeline places the conclusion of the sale later in the current period, once the required approvals and procedural steps have been worked through by the parties involved.
Following the transaction, Seplat's stake in the joint venture will fall from 40 per cent to 30 per cent. At the same time, the interest held by NNPCL will increase to 70 per cent, giving the state oil company a larger share of the partnership after the sale is completed.
Despite reducing its holding, Seplat will remain the operator of the joint venture. The company will also continue to own its subsidiary, meaning that Seplat keeps its operational role in running the venture even as its equity share is lowered.
Seplat says the proceeds from the sale will be used to reduce debt and to enhance shareholder returns. The move is presented as a way of strengthening the company's financial position while also delivering value to those who hold its shares.
The company adds that the transaction forms part of its capital allocation strategy and will support stronger cash flows. In this framing, the sale is described not as a retreat but as a deliberate step within Seplat's broader plan for managing its resources and finances.