Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its approval for TotalEnergies’ $860 million sale of its onshore oil and gas assets to Chappal Energies, citing failure to meet financial and regulatory obligations.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday announced it has cancelled its earlier approval of TotalEnergies’ $860 million divestment of onshore oil assets to Chappal Energies.

Eniola Akinkuotu, Head of Media and Strategic Communications at the commission, told PREMIUM TIMES that Chappal Energies failed to raise the required funds, while TotalEnergies did not pay regulatory fees and provide funds for environmental rehabilitation and future liabilities.

“The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines. However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal,” Mr Akinkuotu said.

With the cancellation, TotalEnergies retains control of the assets.

Background to the Deal

TotalEnergies, which has operated in Nigeria for over 50 years, announced plans to sell its minority stake in the Shell Petroleum Development Company (SPDC) Joint Venture licences as part of its strategy to exit certain Niger Delta oil operations and focus more on gas and cleaner energy.

• May 2022: Company launched a sale of its minority stake in Nigerian onshore oil fields and infrastructure.
• February 2024: TotalEnergies reaffirmed plans to divest citing health, security and environmental concerns.
• July 2024: The company signed a sale and purchase agreement (SPA) with Chappal Energies for its 10 per cent interest in SPDC JV licences, valued at $860 million.

Assets Involved

The sale covered TotalEnergies’ 10 per cent stake in 15 licences of the SPDC JV, plus additional interests in three other licences producing mainly gas (OML 23, OML 28 and OML 77). The assets produce over 20,000 barrels of oil equivalent per day and include 3,500 km of pipelines linked to Bonny and Forcados terminals.