NUPRC approved TotalEnergies’ $510 million divestment of its 12.5% OML 118 stake.
The stake goes to SNEPCo and NAE, pending ministerial consent under the Petroleum Industry Act.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a Sales Purchase Agreement (SPA) that allows TotalEnergies Exploration and Production Nigeria Limited to divest its entire 12.5% interest in Oil Mining Lease (OML) 118. This interest will be transferred to Shell Nigeria Exploration and Production Company (SNEPCO) and Nigerian Agip Exploration Limited (NAE).
According to details released on Thursday by NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, TotalEnergies will transfer a 10% interest to SNEPCo for $408 million and a 2.5% interest to NAE for $102 million, bringing the total transaction value to $510 million.
NUPRC explained that, in line with Section 95 of the Petroleum Industry Act (PIA) 2021, it conducted due diligence on SNEPco and NAE to assess their financial capacity, technical competence, and managerial track record.
“SNEPco and NAE have demonstrated both technical and managerial competence to contribute to the upstream operations in OML 118 optimally,” the Commission stated.
The regulator confirmed that the assignees already hold participating interests in OML 118 and have access to sufficient funding to meet their obligations.
NUPRC emphasized that the assignees will bear all decommissioning, abandonment, and host community liabilities previously owed by TotalEnergies to the Federal Government regarding the divested stake.
The transfer remains subject to ministerial consent, as required under the PIA. The Commission further noted that SNEPco and NAE are expected to pay 5% and 2%, respectively, of the transaction value as a premium for ministerial consent and processing fees.
The Commission described TotalEnergies as a “committed operator in Nigeria’s vibrant upstream sector,” adding that the divestment aligns with ongoing efforts to optimize participation and ensure regulatory compliance in oil and gas operations.
