TotalEnergies sells 10% stake in Nigerian JV licenses to Chappal Energies for $860 million

TotalEnergies has announced that its subsidiary, TotalEnergies EP Nigeria, has signed a sale and purchase agreement (SPA) with Chappal Energies for the sale of its 10% interest in the SPDC JV licences in Nigeria.

The transaction was concluded with a firm consideration of US $860 million. The closing of this deal is subject to customary conditions, including regulatory approvals.

The SPDC JV is an unincorporated joint venture involving the Nigerian National Petroleum Corporation Ltd (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%) and NAOC (5%). This joint venture holds 18 licences in the Niger Delta region.

Under the SPA, TotalEnergies EP Nigeria will sell its 10% participating interest and all associated rights and obligations in 15 of the SPDC JV licences to Chappal Energies. These licences are primarily producing oil, with production from these assets representing approximately 14,000 barrels of oil equivalent per day for TotalEnergies in 2023.

Additionally, TotalEnergies EP Nigeria will transfer its 10% participating interest in the remaining three SPDC JV licences, which predominantly produce gas (OML 23, OML 28, and OML 77), to Chappal Energies. However, TotalEnergies will retain full economic interest in these licences, which currently account for 40% of Nigeria LNG’s gas supply.

In a press statement, Nicolas Terraz, President of Exploration & Production at TotalEnergies, 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 the OML58 licence last month, this divestment of our interest in the SPDC JV licences allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and ensures the continuity of feed gas supply to Nigeria LNG in the future.”