TotalEnergies and Conoil Complete Strategic Asset Swap in Nigerian Offshore Blocks
In a strategic move reshaping offshore oil operations in Nigeria, TotalEnergies Marketing Nigeria Plc has signed an asset swap agreement with Conoil Producing Limited. The deal will see TotalEnergies acquire a 50% operated stake in Oil Prospecting Licence (OPL) 257, while Conoil takes over TotalEnergies’ 40% interest in Oil Mining Lease (OML) 136. This transaction strengthens the partnership between the two energy giants and marks a significant step in Nigeria’s offshore oil development.
Following the agreement, TotalEnergies’ stake in OPL 257 will rise sharply from 40% to 90%, leaving Conoil with a 10% interest. OPL 257 spans approximately 370 square kilometres and lies 150 kilometres off Nigeria’s coast. This block neighbors PPL 261, the site where TotalEnergies and its partners discovered the Egina South field in 2005, underlining its strategic importance for ongoing offshore projects.
The Egina South field, which extends into OPL 257, is poised for further development. TotalEnergies has plans for an appraisal well in 2026, with production expected to tie back to the Egina FPSO located just 30 kilometres away. The company describes the development as a cost-effective approach to leveraging existing infrastructure while expanding Nigeria’s oil output.
Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, emphasized the strategic value of the swap. “This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO,” he said. Sangster added that the move aligns with TotalEnergies’ focus on operating gas and offshore oil assets in Nigeria.
The completion of the asset swap remains subject to regulatory approvals and customary conditions. Industry analysts believe the deal strengthens TotalEnergies’ offshore presence and positions both companies to capitalize on Nigeria’s untapped oil potential while maximizing returns from existing production facilities.
source: Punch