TotalEnergies has completed an agreement to sell its 10% interest in the Shell Petroleum Development Company of Nigeria (SPDC) JV licences to Chappal Energies in a deal valued at $860m (€786.8m). 

SPDC JV, an unincorporated joint venture, comprises Nigerian National Petroleum Corporation (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%) and NAOC (5%).  

These entities collectively hold 18 licences in the Niger Delta region. 

According to the sale and purchase agreement (SPA), TotalEnergies EP Nigeria will transfer its 10% participating interest in the 15 licences to Chappal Energies. 

These licences accounted for approximately 14,000 barrels of oil equivalent per day of the company's share in 2023. 

Additionally, TotalEnergies EP Nigeria will transfer its 10% participating interest in the OML 23, OML 28 and OML 77 SPDC JV licences, which primarily produce gas, to Chappal Energies.  

However, the French oil and gas major will retain full economic interest in these three licences, which are key as they contribute 40% of Nigeria LNG's gas supply. 

The completion of this transaction is contingent on meeting customary conditions including obtaining the necessary regulatory approvals.  

This divestment follows the recent FID made by TotalEnergies and its licence partner NNPCL for the Ubeta gas field in Nigeria. 

The Ubeta gas condensate field, located in the OML 58 onshore licence, is set to be developed with a new six-well cluster.  

TotalEnergies president of exploration & production Nicolas Terraz said: “TotalEnergies continues to actively manage its portfolio in Nigeria, in line with its strategy to focus on its oil offshore and gas assets.  

“After the launch of the Ubeta gas development on OML58 licence last month, this divestment of our interest in SPDC JV licences allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and is designed to ensure the continuity of feed gas supply to Nigeria LNG in the future.”