TotalEnergies Signed Agreement to Sell Interest in Nigerian JV

The divestment is in line with the company’s strategy to focus on its oil offshore and gas assets.

SEATTLE (Oil Monster):TotalEnergies announced that its subsidiary, TotalEnergies EP Nigeria, has signed an agreement with Mauritius-based Chappal Energies to sell its 10% interest in the SPDC JV licences in Nigeria. The other partners of the JV operated by Shell are the Nigerian National Petroleum Corporation (NNPC), Shell and NAOC. It holds as many as 18 licenses in the Niger Delta.

The transaction is valued at approximately $860 million. It is subject to necessary regulatory approvals and satisfaction of customary closing conditions.

The divestment is in line with the company’s strategy to focus on its oil offshore and gas assets.

This is the third major stake sale by TotalEnergies in recent weeks, following the sale of TotalEnergies EP (Brunei) to Hibiscus Petroleum and the sale of entire stake in the West of Shetland gas assets in the UK to The Prax Group.

In accordance with the agreement, TotalEnergies EP Nigeria will transfer its 10% participating interest and all associated rights and obligations in 15 licences to Chappal Energies. These licenses accounted for approximately 14,000 barrels of oil equivalent/day in 2023. Also, the 10% participating interest in three other licenses- OML 23, OML 28, and OML 77 will be transferred, while retaining a full economic interest in these licenses, the company press release said.

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