TotalEnergies EP Nigeria, a subsidiary of TotalEnergies, has agreed to sell its 10% stake in the SPDC joint venture (JV) licences in Nigeria to Chappal Energies for $860m.
The SPDC JV operates with 18 licences in the Niger Delta, supplying onshore and shallow-water oil and gas to both domestic and export markets from its operations in the region.
Stakeholders of the unincorporated joint venture are Nigerian National Petroleum (55%), Shell Petroleum Development Company of Nigeria (30%), TotalEnergies EP Nigeria (10%), and NAOC (5%).
Shell Petroleum Development Company of Nigeria, which is a subsidiary of Shell, is the operator of the SPDC JV.
Under the sale and purchase agreement (SPA) signed by the parties, TotalEnergies EP Nigeria will transfer its 10% participating interest, along with all rights and obligations, in 15 oil-producing licences. These licences accounted for approximately 14,000 barrels equivalent per day in the company’s share in 2023.
Additionally, TotalEnergies EP Nigeria will transfer its 10% participating interest in three gas-producing licences, OML 23, OML 28, and OML 77. The company will retain full economic interest in these licences, which currently supply 40% of Nigeria’s LNG gas.
Chappal Energies, which is headquartered in Mauritius, is an Africa-focused oil company. It is dedicated to unlocking value in Nigeria and Africa’s oil and gas resources by revitalising aging assets with sustainable solutions.
TotalEnergies exploration and production president Nicolas Terraz said: “TotalEnergies continues to actively manage its portfolio in Nigeria, in line with its strategy to focus on its oil offshore and gas assets.
“After the launch of the Ubeta gas development on OML58 licence last month, this divestment of our interest in SPDC JV licences allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and is designed to ensure the continuity of feed gas supply to Nigeria LNG in the future.”
The closing of the transaction is contingent on regulatory approvals and other customary conditions.
In January 2024, Shell signed a deal to sell Shell Petroleum Development Company of Nigeria to Renaissance. The closing of this deal is subject to approvals by the Nigerian government and other conditions.
