- TotalEnergies has sold its 10% stake
- The buyer is Chappal Energies
- The sale includes 15 oil production licenses
French energy giant TotalEnergies has sold its 10% stake in a major Nigerian onshore oil venture for $860 million.
The buyer is Chappal Energies, a Mauritian firm specializing in distressed oil assets.
This move follows CEO Patrick Pouyanne’s earlier announcement of seeking an exit due to operational challenges and environmental concerns.
The venture, Shell Petroleum Development Company of Nigeria (SPDC), has faced numerous oil spills caused by theft, sabotage, and other issues.
The sale includes 15 oil production licenses and stakes in three gas licenses. Interestingly, Total will retain its share of gas production from these licenses, along with access to pipelines supplying the Nigeria LNG plant.
“This divestment allows us to focus on our Nigerian gas operations,” said Nicolas Terraz, President of Exploration & Production at TotalEnergies.
The company aims to ensure a steady gas supply for the Nigeria LNG plant.
This deal comes after Shell sold its larger 30% stake in SPDC earlier this year. The trend of major oil companies exiting Nigeria’s onshore sector is likely to continue, with Exxon Mobil, Eni, and Equinor making similar moves in recent years.
TotalEnergies, however, remains a major player in Nigeria’s offshore oil production.
