Since February, the CEO of the French group hinted at the company’s plans to sell its 10% stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC), given complications the company faced, such as oil spills, theft, and operational issues, amongst others.
A report by Reuters revealed that the aforementioned issues led to a lot of funds being allocated to rehabilitation and high-profile lawsuits.
Three more licenses generate mostly gas and presently contribute 40% of TotalEnergies’ Nigeria LNG production.
Total revealed that it sold the participation stake in the gas licenses to the Mauritian company, but the share of production will remain in Total’s portfolio, including access to the associated infrastructure and pipelines to supply the Nigeria LNG plant with gas.
“This divestment…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 Nicolas Terraz, president of exploration & production, at TotalEnergies.
Subject to regulatory clearances, the acquisition is anticipated to be completed by year’s end.
TotalEnergies last year underlined that it will continue to invest in Nigeria by unveiling a $6 billion (5.5 billion euros) plan to be stretched over several years in the oil and energy sector of the nation, with a particular focus on gas and offshore projects.
Eight to ten percent of the company’s global production and more than eighteen percent of its global investment come from Nigeria.
In 2023, it produced a total of 219,000 barrels of oil equivalent per day in Nigeria.
However, after decades of operation, TotalEnergies is the most recent foreign oil firm that has exited Nigeria’s onshore market.
