TotalEnergies has announced that its subsidiary, TotalEnergies EP Nigeria, has signed a sale and purchase agreement (SPA) with Chappal Energies to sell its 10% interest in the SPDC JV licenses in Nigeria.
The SPDC JV is an unincorporated joint venture comprising Nigerian National Petroleum Corporation Ltd (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%). This JV holds 18 licenses in the Niger Delta.
Under the agreement with Chappal Energies:
- TotalEnergies EP Nigeria will sell its 10% interest and associated rights and obligations in 15 SPDC JV licenses, which primarily produce oil. These licenses accounted for approximately 14,000 barrels of oil equivalent per day in 2023.
- TotalEnergies EP Nigeria will also transfer its 10% interest in the 3 SPDC JV licenses producing mainly gas (OML 23, OML 28, and OML 77) to Chappal Energies, while retaining full economic interest in these licenses. These licenses currently supply 40% of Nigeria LNG’s gas.
The transaction was concluded for a firm consideration of USD 860 million, with closing subject to customary conditions, including regulatory approvals.
Nicolas Terraz, President Exploration & Production of TotalEnergies, stated, “TotalEnergies continues to actively manage its portfolio in Nigeria, focusing on its offshore oil and gas assets. Following the launch of the Ubeta gas development on the OML58 license last month, this divestment of our interest in SPDC JV licenses allows us to concentrate our onshore Nigeria presence solely on the integrated gas value chain, ensuring the continuity of feed gas supply to Nigeria LNG in the future.”
