TotalEnergies to Sell Nigerian Onshore Assets to New Buyer

• The previous sale attempt to Mauritius-based Chappal Energies was blocked by Nigerian regulators because the buyer could not secure the necessary funds
• SPDC has experienced hundreds of oil spills from theft, sabotage, and operational problems, making it a costly and environmentally challenging asset
• Shell previously sold its larger 30% stake in SPDC to a consortium of mostly local companies for up to $2.4 billion, while NNPC holds 55% and Eni holds 5%

Summary

TotalEnergies Sells Nigerian Onshore Stake After Previous Deal Collapse

French energy major TotalEnergies has signed an agreement to sell its 10% non-operated stake in Nigeria's SPDC joint venture (now renamed Renaissance JV) to Vaaris, the company announced Wednesday. The deal follows the collapse of a 2023 agreement with Mauritius-based Chappal Energies, which Nigerian regulators blocked due to the buyer's inability to secure financing.

Transaction Details:

• The sale includes stakes in three additional licenses producing gas for Nigeria LNG, with TotalEnergies retaining full economic interest in these assets
• Limited information disclosed about new buyer Vaaris
• Deal requires approval from Nigerian regulators

Strategic Context:

This divestment aligns with TotalEnergies' broader strategy to shed mature, polluting assets and reduce operational liabilities. The SPDC joint venture has been plagued by hundreds of oil spills resulting from theft, sabotage, and operational problems, leading to expensive repairs and cleanup costs.

Industry Movement:

TotalEnergies joins other international oil majors exiting Nigerian onshore operations. Shell sold its larger 30% stake in SPDC to a consortium of five primarily local companies last year for up to $2.4 billion, signaling an industry-wide retreat from challenging Nigerian onshore assets.

Current Ownership Structure:

• Nigerian National Petroleum Corporation (NNPC): 55%
• Italy's Eni: 5%
• TotalEnergies: 10% (pending sale)

The transaction reflects ongoing consolidation in Nigeria's oil sector as international majors transfer aging onshore assets to local operators while focusing on less problematic offshore developments and cleaner energy portfolios.