The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a $510 million transaction that will see TotalEnergies Exploration and Production Nigeria Limited divest its 12.5 per cent contractor interest in Oil Mining Lease (OML) 118.
Under the deal, TotalEnergies will transfer 10 per cent to Shell Nigeria Exploration and Production Company (SNEPCo) for $408 million and 2.5 per cent to Nigerian Agip Exploration Limited (NAE) for $102 million. The transaction, however, remains subject to ministerial consent as required by the Petroleum Industry Act (PIA) 2021.
In a statement yesterday, NUPRC said it conducted due diligence in line with Section 95 of the PIA, confirming that both SNEPCo and NAE have the financial capacity and technical expertise to sustain operations in OML 118, where they already hold participatory interests.
The Commission noted that the acquiring companies will take over TotalEnergies’ obligations on decommissioning, abandonment, and host community commitments shielding the Federal Government from future liabilities. It also directed SNEPCo and NAE to pay five per cent and two per cent of the transaction value, respectively, as premiums for ministerial consent and processing fees.
The approval comes just days after NUPRC revoked its earlier consent to the TotalEnergies–Chappal Energies deal, citing poor consummation despite ministerial approval granted in October 2024.
The development underscores ongoing shifts in Nigeria’s upstream oil sector, where international oil companies are divesting from onshore and shallow-water assets, while regulators tighten oversight on environmental and community responsibilities.
