TotalEnergies Strengthens Partnership with SAPETRO for Faster OPL257 Development
TotalEnergies has signed a Farm-Out Agreement with South Atlantic Petroleum Limited (SAPETRO) to sell a 40% participating interest in offshore block OPL257 in Nigeria. The agreement strengthens the long-standing partnership between the two companies and is expected to support the accelerated appraisal and potential development of the Egina South field.
Following completion of the transaction, TotalEnergies will retain a 50% operated participating interest in OPL257. SAPETRO will hold a 40% interest, while Conoil will maintain the remaining 10%. The revised ownership structure brings together the three companies to advance exploration and development activities in the offshore block.
The agreement represents an important step in strengthening cooperation between TotalEnergies and SAPETRO, which already have a partnership in the neighbouring PPL261 block. The companies are working together to assess the development potential of the Egina South field, an offshore discovery that extends across both petroleum licences.
OPL257 is situated approximately 150 kilometres offshore Nigeria. Its geographical position makes it strategically important for further exploration and development activities connected to the Egina South discovery. The block is adjacent to PPL261, where TotalEnergies holds a 24% participating interest alongside its partners, including SAPETRO.
The Egina South field was discovered in 2005 during exploration activities in PPL261. The discovery extends across the boundaries of PPL261 and OPL257, creating opportunities for coordinated appraisal and potential development involving both blocks.
Under the planned programme, an appraisal campaign will be conducted on the OPL257 portion of the Egina South field in the coming months. The campaign is intended to improve understanding of the resource potential on this side of the discovery and provide additional information required to assess the technical and commercial feasibility of development.
The appraisal programme will be an important milestone in determining the next steps for the field. By evaluating the OPL257 section, the partners aim to establish whether the discovery can support an integrated development strategy that makes use of existing offshore infrastructure.
If appraisal activities confirm the commercial potential of the resource, Egina South could be developed through a tie-back connection to the Egina floating production, storage and offloading (FPSO) facility. The existing FPSO is located approximately 30 kilometres from the discovery, providing a potential infrastructure option for processing and handling production from the field.
Using the existing Egina FPSO could help reduce the need for additional large-scale offshore facilities. Such an approach may also support more efficient project execution by taking advantage of infrastructure already operating in the area. The proposed tie-back concept is consistent with the partners’ intention to evaluate a development option that can make use of established facilities.
The transaction also provides a stronger framework for cooperation between TotalEnergies and SAPETRO across the two neighbouring petroleum licences. Their participation in both OPL257 and PPL261 is expected to facilitate coordination during appraisal planning and subsequent development activities, subject to successful results.
Commenting on the agreement, Mike Sangster, Senior Vice President of Africa Exploration and Production at TotalEnergies, welcomed SAPETRO’s participation in OPL257 and highlighted the importance of consolidating the companies’ existing relationship.
“TotalEnergies is pleased to have SAPETRO as a partner in OPL257 as well as in the adjacent PPL261 block. Consolidating our long-term partnership paves the way for a quick appraisal campaign and subsequent development of Egina South in the success case,” Sangster said.
He added that the transaction aligns with TotalEnergies’ strategy of developing low-cost, low-emission resources while making effective use of existing facilities.
The company’s approach focuses on identifying development opportunities that can benefit from established infrastructure and operational capabilities. In offshore environments, connecting new discoveries to existing production facilities can offer an alternative to constructing entirely new processing and export infrastructure.
For TotalEnergies, the OPL257 agreement forms part of its broader efforts to maintain and develop its Nigerian upstream portfolio. The company has maintained a significant presence in Nigeria for more than six decades, with activities spanning several business segments.
Completion of the Farm-Out Agreement remains subject to customary conditions, including the receipt of the necessary regulatory approvals. The transaction will become effective once the applicable conditions have been fulfilled and the required approvals obtained.
TotalEnergies’ Operations in Nigeria
TotalEnergies has operated in Nigeria for more than 60 years and remains an established participant in the country’s energy industry. The company currently employs more than 1,800 people across its different business segments, supporting its exploration, production, distribution and other commercial activities.
Nigeria is one of the major contributing countries to TotalEnergies’ hydrocarbon production portfolio. The company reported production of approximately 188,000 barrels of oil equivalent per day (boe/d) in Nigeria in 2025, highlighting the country’s importance to its wider upstream operations.
In addition to its exploration and production activities, TotalEnergies operates an extensive fuel distribution network throughout Nigeria. Its network includes approximately 540 service stations, providing fuel and related services to consumers and businesses across the country.
The company’s operations also involve engagement with local communities and efforts to contribute to Nigeria’s wider socio-economic development. TotalEnergies has stated that it pays particular attention to the social and economic impact of its activities and remains committed to working with communities in the areas where it operates.
The strengthened partnership with SAPETRO on OPL257 adds another development opportunity to TotalEnergies’ Nigerian portfolio. The planned appraisal campaign will provide the partners with additional information about the Egina South discovery and help determine its future development prospects.
With TotalEnergies retaining operatorship and a 50% participating interest, SAPETRO holding 40% and Conoil maintaining 10%, the agreement establishes the ownership structure for the next phase of work on OPL257.
The immediate priority will be to advance appraisal activities on the portion of Egina South located within the block. If the results support commercial development, the partners could pursue a tie-back to the existing Egina FPSO, approximately 30 kilometres away.
The proposed arrangement reflects TotalEnergies’ strategy of combining partnerships, existing infrastructure and targeted investment to develop offshore resources. Successful appraisal and subsequent development could strengthen the companies’ activities in Nigeria’s offshore sector while contributing to the country’s hydrocarbon production potential.
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