TotalEnergies EP Nigeria has signed a $860 million sale and purchase agreement (SPA) with Chappel Energies for the sale of its10% interest in the SPDC joint venture in Nigeria.
The SPDC JV is a consortium that includes the Nigerian National Petroleum Corporation Ltd (NNPC) with a 55% share, Shell Petroleum Development Company of Nigeria (SPDC) holding 30% as the operator, TotalEnergies EP Nigeria with 10%, and NAOC with a 5% interest.
The JV operates 18 licenses within the Niger Delta region.
Under the terms of the SPA, TotalEnergies EP Nigeria will sell its 10% participating interest and all its rights and obligations in 15 producing licenses of the SPDC JV, mainly oil.
Production from these licenses holds about 14,000 barrels equivalent per day in Company share in 2023, said TotalEnergies on Wednesday.
TotalEnergies EP Nigeria will also transfer to Chappal Energies its 10% participating interest in the 3 other licenses of SPDC JV which are producing mainly gas (OML 23, OML 28 and OML 77).
However, the French company will maintain its full economic interest in these licenses which currently account for 40% of Nigeria LNG gas supply.
The transaction is subject to customary conditions, including regulatory approvals.
“TotalEnergies continues to actively manage its portfolio in Nigeria, in line with its strategy to focus on its oil offshore and gas assets,” said Nicolas Terraz, President Exploration & Production of TotalEnergies.
“After the launch of the Ubeta gas development on OML58 license last month, this divestment of our interest in SPDC JV licenses allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and is designed to ensure the continuity of feed gas supply to Nigeria LNG in the future”, Terraz continued.
Notably, Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production with 219,000 barrel of oil equivalent per day (boe/d) produced in 2023.
TotalEnergies also operates an extensive distribution network which includes about 540 service stations in the country.
