TotalEnergies Sells Stake in Nigerian JV for $860 Million
French energy company TotalEnergies is selling its 10% stake in a joint venture (JV) in Nigeria to Chappal Energies for $860 million, according to a TotalEnergies press release.
“TotalEnergies announces that its subsidiary TotalEnergies EP Nigeria has signed a sale and purchase agreement with Chappal Energies for the sale of its 10% stake in the SPDC JV licenses in Nigeria… The amount of the concluded transaction is $860 million,” the statement said.
Completion of the transaction is subject to certain conditions, including obtaining approval from the relevant regulatory authorities.
Under the terms of the agreement, the TotalEnergies subsidiary will sell its stake in SPDC JV, as well as all its rights and obligations in 15 of the company’s licenses, which primarily produce oil. Last year, the production level under these licenses was 14,000 barrels of oil equivalent per day. The company will also transfer its stake in three other licenses, which mainly produce gas.
SPDC JV is a joint venture between the Nigerian state-owned NNPC (55% stake), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%) and the Nigerian Agip Oil Company (5%). The joint venture owns 18 licenses in the Niger Delta.
French TotalEnergies is one of the largest energy companies in the world. It operates in almost 130 countries, producing oil and gas in Europe, the Middle East and North Africa, the Asia-Pacific region, as well as North and South America. The company employs more than 100,000 people.
