TotalEnergies sells $860m stake in Nigeria onshore oil

French energy giant TotalEnergies announced on Wednesday the sale of its 10 per cent stake in a collection of Nigerian oil and gas production licenses to Mauritius-based Chappal Energies for $860 million.

The deal involves 18 licenses held in a joint venture with operator Shell Petroleum Development Company of Nigeria (30 per cent), the Nigerian National Petroleum Corporation Ltd (55 per cent), and Nigerian Agip Oil Company (five per cent).

Chappal Energies specialises in acquiring and developing undervalued, mature oil and gas assets in Nigeria’s Niger Delta region.

The majority of the licenses (15) produce primarily crude oil, contributing around 14,000 barrels of oil equivalent per day to Total’s share in 2023.

The remaining three licenses focus on natural gas production and currently account for 40 per cent of the gas supplied by TotalEnergies to Nigeria LNG.

Interestingly, while TotalEnergies has sold the participation stake in these gas licenses to Chappal, the company will retain full economic interest in the gas production.

Attribution: Reuters