The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially approved TotalEnergies Exploration and Production Nigeria Limited’s plan to sell its entire 12.5% stake in Oil Mining Lease (OML) 118.
The stake will be transferred to a consortium of Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE).
According to the NUPRC, SNEPCo will acquire 10% of the stake for $408 million, while NAE will take 2.5% for $102 million.
“SNEPco and NAE have demonstrated both technical and managerial competence to optimally contribute to the upstream operations (explore, develop and produce) in OML 118,” the NUPRC said in a statement on its official X handle on Thursday.
The Commission added that both companies have access to funding to meet their financial obligations, having provided clear evidence of their financial capabilities.
As part of the deal, SNEPCo and NAE will assume responsibility for all decommissioning and abandonment liabilities, as well as host community obligations owed by TotalEnergies to the Federal Government.
“The Commission noted that these liabilities are critical in ensuring the long-term sustainability of Nigeria’s oil and gas operations, especially in host communities,” the NUPRC emphasized.
SNEPCo and NAE are expected to pay 5% and 2% respectively of the total transaction value, amounting to $510 million, as a premium on ministerial consent and processing fees.
The divestment remains subject to ministerial consent, as mandated under Sections 95(1), (2), (7), (11), and (12) of the Petroleum Industry Act (PIA) 2021. The NUPRC’s approval underscores its commitment to promoting an enabling environment for investments in upstream petroleum operations.
This development is part of the ongoing adjustments in Nigeria’s oil sector, with international companies reviewing their portfolios and reinforcing strategic operations.
In a related development, the NUPRC’s CEO, Gbenga Komolafe, stated that the production sharing contract (PSC) with TotalEnergies will support Nigeria’s transition to a gas-powered economy.
Komolafe added that all new deepwater and frontier acreage production sharing contracts will likely adopt similar gas terms, setting a model for dedicated gas development contracts.
Earlier in September, NNPCL, in partnership with TotalEnergies and South Atlantic Petroleum (SAPETRO), finalized a new PSC for deepwater Petroleum Prospecting Licences (PPLs) 2000 and 2001.
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