TotalEnergies sells Nigerian onshore oil asset to Mauritian company

• Published On: 17 July 2024 at 19:48

TotalEnergies has stated that it has sold its participation holding in three additional gas-generating licenses, which currently account for 40% of Nigeria's LNG production, to a Mauritius business.

Despite the divestment, TotalEnergies would retain control of the production share, ensuring access to the infrastructure and pipelines required to provide gas to the Nigeria LNG project.

TotalEnergies' President of Exploration & Production, Nicolas Terraz, stated that the sale will focus on the integrated gas value chain, ensuring ongoing feed gas supply to Nigeria LNG.

Since February, the CEO of the French business has hinted at plans to sell its 10% investment in Shell Petroleum Development Company of Nigeria Limited (SPDC), citing a variety of concerns the company experienced, such as oil leaks, theft, and operational issues.

According to Reuters, these issues required large money for rehabilitation and resulted in high-profile lawsuits.

The deal is scheduled to be completed by the end of the year, pending regulatory approvals.

TotalEnergies renewed its commitment to Nigeria last year, unveiling a $6 billion (5.5 billion euros) investment plan in the country's oil and energy sector over several years, with a focus on gas and offshore projects.

Nigeria accounts for eight to ten percent of TotalEnergies' global production and over eighteen percent of its global investments. In 2023, the company produced 219,000 barrels of oil equivalent per day in Nigeria.

TotalEnergies, on the other hand, is the most recent foreign oil major to leave Nigeria's onshore sector after decades of activity.