TotalEnergies’ Nigeria’s exit plans hit roadblock as NUPRC revokes $860m asset sale to Chappal

The New Diplomat
Writer

Ad

Tinubu Presides over Council of State, Set to Present Nominees for INEC Chair

By Abiola Olawale President Bola Tinubu is currently presiding over the National Council of State meeting at the Presidential Villa. It was gathered that the President is expected to present his nominees for the Independent National Electoral Commission (INEC) chairmanship during the meeting. The development came after the recent exit of Professor Mahmood Yakubu, whose…

Putin says Russian air defenses responsible for Azerbaijani jet’s crash last year, killing 38

Russian President Vladimir Putin on Thursday said that Russia’s air defenses were responsible for shooting down an Azerbaijani airliner in December that killed 38 people in his first admission of blame for the crash. Putin made the statement at a meeting with Azerbaijan’s President Ilham Aliev in Tajikistan’s capital of Dushanbe, where both are attending…

Elder statesman, broadcaster, and diplomat Christopher Kolade dies at 92

By Obinna Uballa Nigeria has lost one of its most respected public figures, Dr. Christopher Kolade, CON - the revered diplomat, broadcaster, and corporate leader - who passed away peacefully on Wednesday, October 8, 2025, at the age of 92. His family announced his passing in a statement on Thursday, expressing gratitude for “his incredible…

Ad

By Obinna Uballa

TotalEnergies’ plan to scale back its presence in Nigeria’s troubled onshore oil sector has hit a major roadblock after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revoked approval for the sale of its 10 per cent stake in the Shell Petroleum Development Company (SPDC) joint venture to Chappal Energies.

The $860 million transaction, agreed last year, was a key plank of the French oil major’s divestment strategy aimed at offloading mature and polluting assets in Nigeria, where theft, spills, vandalism and community disputes have long plagued operations, reports said.

TotalEnergies had planned to shift focus to offshore and gas projects, particularly its Nigeria LNG commitments, according to sources.

But the regulator confirmed to Reuters on Monday that the deal had collapsed after both parties failed to meet financial and regulatory obligations tied to the approval.

“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,” NUPRC spokesperson Eniola Akinkuotu told Reuters.

Sources said Mauritius-based Chappal Energies was unable to raise the required $860 million, leaving Total unable to meet associated regulatory fees and liability requirements. The setback leaves TotalEnergies stuck with its SPDC stake at a time when it is seeking to cut debt and streamline operations.

The collapse represents a blow to Chief Executive Patrick Pouyanne’s plan to raise $3.5 billion from asset sales this year to reduce debt, which had surged 89 per cent to $25.9 billion by July, according to the report. Pouyanne had told investors that the Nigerian divestment was one of three deals expected to help lower the company’s debt-to-equity ratio.

It also contrasts with rival Shell, which in March secured approval to sell its 30 per cent stake in SPDC to a consortium of five mostly local firms for up to $2.4 billion. Other majors, including ExxonMobil, Eni and Equinor, have also exited or scaled down onshore operations in Nigeria in recent years.

Chappal, which specialises in acquiring mature and distressed oilfields, had last year completed a $1.2 billion purchase of Equinor’s Nigerian assets with support from Mauritius Commercial Bank and commodities trader Trafigura. But it has not disclosed financial backers for the failed TotalEnergies bid.

With the revocation, Total remains tied to 15 oil-producing licences and three gas assets under SPDC, including fields that supplied 40 per cent of its Nigeria LNG gas volumes in 2023 – prolonging its entanglement in one of the company’s most challenging portfolios, the report said.

SPDC’s other shareholders include the Nigerian National Petroleum Corporation (55 per cent) and Italy’s Eni (5 per cent).

Go back

Your message has been sent

Warning
Warning
Warning
Warning

Warning.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp