NUPRC Approves $510 Million Divestment of TotalEnergies’ 12.5% OML 118 Stake to SNEPCo, NAE

The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has permitted the $510 million divestment of TotalEnergies Exploration and Manufacturing Nigeria Restricted’s 12.5 p.c contractor curiosity in Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Manufacturing Firm (SNEPCo) and Nigerian Agip Exploration Restricted (NAE).

Underneath the phrases of the Gross sales and Buy Settlement (SPA), TotalEnergies will switch 10 p.c to SNEPCo for $408 million, whereas NAE will purchase 2.5 p.c for $102 million.

The transaction stays topic to ministerial consent according to the provisions of the Petroleum Business Act (PIA) 2021.

NUPRC said that it performed due diligence in compliance with Part 95 of the PIA to confirm the monetary and technical capability of the assignees.

The Fee confirmed that each SNEPCo and NAE possess the experience and assets to maintain exploration, improvement, and manufacturing in OML 118, the place they already maintain participatory pursuits.

As a part of the approval, SNEPCo and NAE will assume TotalEnergies’ decommissioning, abandonment, and host group obligations on the divested stake.

The Fee famous that this shields the Federal Authorities from residual liabilities related to the asset.

As well as, the businesses are required to pay 5 p.c and two p.c respectively of the transaction worth as premiums for ministerial consent and processing charges.

The approval comes shortly after the withdrawal of an earlier consent to a proposed divestment involving TotalEnergies and Chappal Energies, which stalled over poor consummation regardless of receiving ministerial approval in October 2024.

NUPRC described the OML 118 approval as a part of its dedication to implementing transparency, accountability, and strict adherence to the PIA in oil asset transfers.

The Fee additionally highlighted the continuing restructuring of Nigeria’s upstream sector as Worldwide Oil Corporations (IOCs) proceed to divest onshore and shallow-water belongings whereas consolidating their deepwater portfolios.

OML 118 stays one in all Nigeria’s key deepwater belongings, and the most recent transaction reinforces the stakes of each SNEPCo and NAE in its long-term improvement.