SPDC, a joint venture involving Shell, Eni, the Nigerian National Petroleum Corporation (NNPC Ltd), and TotalEnergies, is a major player in Nigeria’s oil and gas ecosystem, with assets both onshore and in shallow waters.
$860 Million Deal with Chappal Energies
On Wednesday, July 17th, TotalEnergies officially announced the sale of its 10% stake in SPDC for $860 million. The joint venture, operated by the Anglo-Dutch company Shell, holds 18 oil and gas licenses in the Niger Delta, 15 of which are currently producing.
Chappal Energies Acquires Assets and Obligations
Chappal Energies signed a sale and purchase agreement (SPA) with the French company, outlining the transfer of these interests along with the rights and obligations associated with the operation of the fifteen crude oil-producing licenses.
Gas Interests and Continued Revenue
The terms of the agreement also stipulate Chappal’s acquisition of TotalEnergies’ 10% stake in gas-producing OMLs 23, 28, and 77.
However, TotalEnergies will retain the right to benefit from the revenue generated by gas production, even though it will no longer be involved in the daily operations of these licenses, which contribute to 40% of Nigeria LNG’s gas supply.
Strategic Focus on Offshore and Gas Assets
Nicolas Terraz, Senior Vice President for Exploration & Production at TotalEnergies, explained that this transaction aligns with the company’s policy “to focus on its offshore oil and gas assets.”
Potential Further Divestments
This divestment may not be the only one as TotalEnergies manages its international asset portfolio.
Earlier this month, a source close to the Petroleum Agency of South Africa (PASA) revealed TotalEnergies’ plan to relinquish its shares in the 11B/12B offshore block located off the coast of South Africa.