Seplat Energy Plc has confirmed it is in discussions with the Nigerian National Petroleum Company Limited (NNPC) regarding a potential sale of a 10 percent interest in their joint venture assets.
If concluded, the transaction would increase NNPC’s stake in the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture to 70 percent, while Seplat’s holding would reduce to 30 percent.
Despite the potential stake reduction, Seplat emphasized that it will continue to serve as the operator of the JV assets.
The company noted that the discussions remain subject to agreement on terms and execution of a substantive transaction document.
Seplat assured investors that its new dividend policy, which commits to returning 40 to 50 percent of free cash flow to shareholders with a minimum distribution of $120 million annually, will remain unchanged should the transaction be finalized.
Further details are expected to be provided as negotiations progress and subject to regulatory approvals.
