TotalEnergies announced that its subsidiary, TotalEnergies EP Nigeria, has signed a sale and purchase agreement (SPA) with Chappal Energies to sell its 10% interest in the SPDC JV licenses in Nigeria.
Thank you for reading this post, don't forget to subscribe!The SPDC JV is an unincorporated joint venture that includes the Nigerian National Petroleum Corporation Ltd (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%). The JV holds 18 licenses in the Niger Delta.
Details of the Transaction:
TotalEnergies EP Nigeria will sell its 10% participating interest and all rights and obligations in 15 licenses of the SPDC JV, which primarily produce oil. These licenses represented approximately 14,000 barrels equivalent per day in Company share in 2023.
TotalEnergies EP Nigeria will also transfer its 10% participating interest in 3 other licenses (OML 23, OML 28, and OML 77), which primarily produce gas, to Chappal Energies. TotalEnergies will retain full economic interest in these licenses, which currently account for 40% of Nigeria LNG gas supply.
The transaction was concluded for a firm consideration of USD 860 million, subject to customary conditions, including regulatory approvals.
“TotalEnergies continues to actively manage its portfolio in Nigeria, focusing on offshore oil and gas assets. This divestment allows us to concentrate our onshore presence solely on the integrated gas value chain, ensuring the continuity of feed gas supply to Nigeria LNG,” said Nicolas Terraz, President of Exploration & Production at TotalEnergies.
Shell previously agreed to sell its 30% stake in SPDC to a consortium of five mostly local companies for up to $2.4 billion. The Nigerian National Petroleum Corporation (NNPC) holds 55% of the joint venture, while Italy’s Eni holds 5%. Other major companies like Exxon Mobil, Eni, and Norway’s Equinor have also sold assets in Nigeria in recent years to focus on more profitable operations elsewhere.
TotalEnergies, which produced a total of 219,000 barrels of oil equivalent per day in 2023 in Nigeria, remains a major operator of offshore fields in the West African country.
