Strategic Pivot: TotalEnergies Sells Nigerian Onshore Assets for $860M
The landscape of the African energy sector is undergoing a monumental shift as TotalEnergies Sells Nigerian Onshore Assets in a deal valued at approximately $860 million. The French energy giant officially announced the signing of a Sale and Purchase Agreement with Chappal Energies, a move that signals a decisive retreat from the complexities of land based oil production in the Niger Delta.
This transaction involves the divestment of the company’s entire 10 percent interest in the Shell Petroleum Development Company of Nigeria Limited Joint Venture, SPDC JV, which operates a vast network of oil mining leases and critical infrastructure across the region.
This divestment includes a significant portfolio consisting of 18 oil mining leases, of which 15 are primarily focused on oil production. The assets involved are not merely stagnant reserves, they accounted for a production share of approximately 14,000 barrels of oil equivalent per day for TotalEnergies in 2023 alone.
By offloading these interests, the company is effectively streamlining its Nigerian operations to focus on more lucrative and technologically advanced deepwater projects. This transition aligns with a broader industry trend where international oil companies are migrating away from onshore challenges, such as crude theft and operational disruptions, to the more secure and high yield offshore blocks.
Under the terms of the agreement, the $860 million consideration is structured to ensure a smooth transition of ownership. The deal covers the transfer of not only the oil producing leases but also the 10 percent stake in the vital infrastructure that supports the venture, including the Forcados and Bonny export terminals.
These terminals are the lifeblood of Nigeria’s oil export economy, and the change in ownership marks a significant milestone in the increasing participation of indigenous and specialized firms in the management of the nation’s natural resources. TotalEnergies has clarified that while it is exiting these specific onshore licenses, it remains deeply committed to Nigeria through its integrated gas value chain and offshore exploration.
The completion of the sale is subject to the customary regulatory approvals from the Nigerian government, particularly the Nigerian Upstream Petroleum Regulatory Commission. Industry analysts view this move as a strategic rebalancing of the TotalEnergies global portfolio, allowing the firm to lower its carbon intensity while maintaining a strong presence in the Nigerian energy market.
For Chappal Energies, the acquisition represents a massive leap in its operational scale, positioning the firm as a major player in the future of the Niger Delta. As the legal and financial closing processes commence, the energy world remains watchful of how this transition will impact local production quotas and the overall stability of the Nigerian petroleum industry.