TotalEnergies sells stake in Nigeria’s SPDC for $860 million

LAGOS, July 17, 2024 – TotalEnergies has entered an agreement to sell its 10% interest in Nigeria’s SPDC joint venture to Chappal Energies for USD 860 million, the French energy giant said on Wednesday.

SPDC is a joint venture between Nigerian National Petroleum Corporation (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%) and Nigerian Agip Oil Company (5%).

The venture holds 18 licences in the Niger Delta.

Nigerian-owned Chappal Energies is an Africa-focused E&P player headquartered in Mauritius. The company’s activities are centred on revitalising ageing assets.

“This divestment of our interest in SPDC JV licences 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 TotalEnergies’ president of exploration and production, Nicolas Terraz.

As part of the deal, TotalEnergies will retain full economic interest in OML 23, OML 28 and OML 77 – licences that together contribute 40% of Nigeria LNG gas supply.

Nigerian Agip Oil Company, previously held by Eni, was acquired by Oando in September 2023.

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