TotalEnergies sells stake in Nigerian onshore JV asset for $860m
TotalEnergies announced that its subsidiary TotalEnergies EP Nigeria signed a sale and purchase agreement (SPA) with Chappal Energies for the sale of its 10% interest in the SPDC JV licences in Nigeria.
The transaction was concluded for a firm consideration of $860 million, according to a statement on Wednesday.
SPDC JV is an unincorporated joint venture between Nigerian National Petroleum Corporation Ltd (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%) and NAOC (5%), which holds 18 licenses in the Niger Delta.
Under the SPA signed with Chappal Energies, TotalEnergies EP Nigeria will sell to Chappal Energies its 10% participating interest and all its rights and obligations in 15 licences of SPDC JV, which are producing mainly oil. Production from these licences represented about 14,000 barrels equivalent per day in Company share in 2023.
TotalEnergies EP Nigeria will also transfer to Chappal Energies its 10% participating interest in the three other licences of SPDC JV which are producing mainly gas (OML 23, OML 28 and OML 77), while retaining full economic interest in these licenses which currently account for 40% of Nigeria LNG gas supply.
“TotalEnergies continues to actively manage its portfolio in Nigeria, in line with its strategy to focus on its oil offshore and gas assets. 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,” said Nicolas Terraz, President Exploration & Production of TotalEnergies.
