Seplat Energy Plc has signed an agreement to sell a 10 percent stake in the assets held under its joint venture with the Nigerian National Petroleum Company (NNPC) Limited for $281 million, in a move that will increase the national oil company’s ownership in the venture.
Gatekeepers News reports that the company disclosed the transaction in a regulatory filing submitted to the Nigerian Exchange (NGX) on Thursday, stating that the agreement covers assets held within the NNPC Limited/Seplat Energy Producing Nigeria Unlimited (SEPNU) joint venture.
Following the completion of the deal, Seplat’s interest in the joint venture will reduce to 30 percent, while NNPC Limited’s stake will rise to 70 percent, further strengthening the state-owned oil firm’s ownership position in the assets.
The transaction is valued at $281 million and comes months after Seplat completed its acquisition of Mobil Producing Nigeria Unlimited’s onshore assets, a deal that significantly expanded its upstream portfolio.
The latest divestment is expected to further reshape the ownership structure of the joint venture, while investors will be watching for more details on the completion timeline and how Seplat intends to deploy the proceeds from the sale.
