French oil major, TotalEnergies is planning to sell its onshore oil asset in Nigeria to an indigenous oil company, Chappal Energies, for the sum of $860 Million.
Gatekeepers News reports that the deal which is set to be finalized by December 31, 2024, represents TotalEnergies’ strategic move to divest from Nigeria’s onshore segment in favour of a more secure offshore environment.
The transaction involves acquiring a 10% stake in 15 oil mining leases, as well as ownership of Forcados and Bonny export terminals, both critical assets within Shell Petroleum Development Company (SPDC) joint venture.
Chappal’s financing will be sourced from an entity affiliated with TotalEnergies or a financial institution chosen by the French company.
Trading firm Trafigura and a consortium of global banks are also contributing funds.
Before this, TotalEnergies was planning to divest its minority stake in a significant Nigerian onshore oil joint venture.
The CEO of the oil major, Patrick Pouyanne, announced this during the company’s financial results presentation in February 2024.
According to Pouyanne; the company intends to restructure its portfolio because of the growing challenges associated with oil production in Niger Delta as the primary reason.
He said, “We want to divest our share of SPDC, and we are looking to reshape the portfolio.”
“Fundamentally it’s because producing this oil in the Niger Delta is not in line with our [Health, Security, and Environmental] policies, it’s a real difficulty.”
Pouyanne further stated that the company intends to retain its Nigerian gas assets, considering them essential for the company’s future expansion in liquefied natural gas development in the future.
