The truth is finally out! TotalEnergies speaks on leaving Nigeria after selling company

• TotalEnergies has stated that it will not be leaving the Niger Delta after its recent $860 million deal with Chappal Energies
• The company’s country communication manager clarified that SPDC JV is an unincorporated joint venture between different companies
• He also explained that the company will give Chappal Energies its 10% participation interest in the remaining three SPDC JV licenses

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

With its $860 million sale and purchase agreement (SPA) with Chappal Energies, TotalEnergies has declared that it will not be departing the Niger Delta.

Chappal Energies and TotalEnergies EP Nigeria, a subsidiary of the parent company, recently signed an SPA. Photo Credit: Akarawut Lohacharoenvanich
Source: UGC

This occured after TotalEnergies EP Nigeria, a subsidiary of the parent business, signed an SPA with Chappal Energies to sell its 10% stake in the SPDC JV licenses in Nigeria.

Dr. Charles Ebereonwu, Country Communication Manager of TotalEnergies in Nigeria, stated that the company is staying in the Niger Delta despite the $860 million SPA deal with Chappal Energies.

The company states that SPDC JV, which holds eighteen licenses in the Niger Delta, is an unincorporated joint venture between Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%). Nigerian National Petroleum firm Ltd holds the majority of the shares (55%).

It said,

“TotalEnergies EP Nigeria will sell to Chappal Energies its 10% participating interest and all its rights and obligations in 15 licenses of SPDC JV, which are producing mainly oil. Production from these licenses represented approximately 14,000 barrels equivalent per day in Company share in 2023.“TotalEnergies EP Nigeria will also transfer to Chappal Energies its 10% participating interest in the 3 other licenses of SPDC JV which are producing mainly gas (OML 23, OML 28 and OML 77), while retaining full economic interest in these licenses which currently account for 40% of Nigeria LNG gas supply.“The transaction was concluded for a firm consideration of USD 860 million. Closing is subject to customary conditions, including regulatory approvals.”

According to Nicolas Terraz, President of Exploration & Production at TotalEnergies in a New Telegraph report, the company is still actively managing its portfolio in Nigeria in keeping with its plan to concentrate on its offshore oil and gas assets.

Another energy giant sells company shares

Legit.ng reported that as major oil companies continue to pull out of troubled onshore operations in Nigeria, Chappal Energies Mauritius Ltd has agreed to pay $860 million to acquire TotalEnergies SE's 10% interest in the country's oil and gas assets.

Chappal Energies said in a statement on Wednesday that the agreement includes a 10% stake in 15 oil mining leases as well as the Forcados and Bonny export terminals, which are a part of the Shell Petroleum Development Co. joint venture.

TotalEnergies, the massive French energy company, stated in a separate statement that production from those licenses accounted for about 14,000 barrels equivalent per day for the company last year.

Source: Legit.ng