The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given its approval for TotalEnergies EP Nigeria Limited to divest its entire 12.5 percent stake in Oil Mining Lease (OML) 118. The $510 million transaction will see Shell Nigeria Exploration and Production Company (SNEPCo) acquire 10 percent of the stake, while Nigerian Agip Exploration (NAE) Limited takes the remaining 2.5 percent.
TotalEnergies first announced the planned divestment on May 29, 2025, as part of a broader portfolio adjustment in Nigeria’s oil and gas sector. Under the revised agreement approved by the regulator, SNEPCo will pay $408 million for its share, and NAE will pay $102 million. OML 118, a key deep-water asset, is operated by SNEPCo with a 55 percent stake, alongside Esso Exploration and Production Nigeria (20 percent), TotalEnergies (12.5 percent), and NAE (12.5 percent).
In a statement signed by spokesperson Eniola Akinkuotu, the NUPRC said it conducted due diligence under Section 95 of the Petroleum Industry Act (PIA) 2021 to confirm the technical and financial capabilities of both SNEPCo and NAE. According to the commission, both companies already hold interests in OML 118 and have demonstrated the expertise and funding capacity needed to explore, develop, and produce the asset sustainably.
As part of the deal, SNEPCo and NAE will take over all decommissioning, abandonment, and host-community liabilities owed by TotalEnergies to the federal government for the divested stake. They are also required to pay 5 percent and 2 percent, respectively, of the $510 million transaction value as a premium for ministerial consent and processing fees. The commission emphasized that ministerial approval remains the final step for the transfer to take effect.
TotalEnergies remains a significant operator in Nigeria’s upstream sector and has fulfilled all statutory application requirements for the sale. The approval comes just one day after NUPRC withdrew consent for TotalEnergies’ planned $860 million asset sale to Chappal Energies, signaling tighter regulatory oversight of divestments in Nigeria’s oil and gas industry. Analysts say the OML 118 transaction underscores continued investor confidence in the country’s deep-water oil fields.
source: The cable