By John Umeh
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given regulatory approval for TotalEnergies Exploration and Production Nigeria Limited to divest its 12.5 percent contractor interest in Oil Mining Lease (OML) 118, valued at $510 million, to Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE).
In the transaction, TotalEnergies will transfer 10 percent of its stake to SNEPCo for $408 million, while NAE will acquire the remaining 2.5 percent for $102 million.
According to NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, the Commission undertook a thorough due diligence process in line with Section 95 of the Petroleum Industry Act (PIA) 2021, confirming that both SNEPCo and NAE possess the required financial capacity and technical expertise to manage operations in OML 118.
The Commission stated:
“SNEPCo and NAE have demonstrated technical and managerial competence to contribute effectively to upstream operations. Documents submitted also confirm that they have secured adequate funding to meet their obligations.”
NUPRC further disclosed that the acquiring companies will inherit decommissioning and abandonment liabilities, as well as host community obligations previously held by TotalEnergies. It also confirmed that TotalEnergies had fulfilled all statutory requirements, including the payment of applicable application fees.
However, the Commission clarified that the deal is still subject to ministerial consent, as mandated by the PIA 2021. Under this process, SNEPCo and NAE will pay premiums of 5 percent and 2 percent, respectively, on the transaction value, alongside other processing fees.
TotalEnergies, a long-term player in Nigeria’s upstream oil and gas industry, joins other international operators who have restructured their Nigerian portfolios in recent years, as Shell and Agip deepen their footprint in key offshore assets.
