FG Blocks TotalEnergies’ $860 Million Nigerian Asset Sale Amid Regulatory Concerns
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has withdrawn its earlier approval for French oil giant TotalEnergies to sell its 10% stake in the Shell Petroleum Development Company (SPDC) joint venture, dealing a significant blow to the company’s plan to offload ageing onshore assets and reduce its debt. The sale, initially approved in October 2024, was meant to transfer Total’s stake to Mauritius-based Chappal Energies for $860 million.
According to NUPRC spokesperson Eniola Akinkuoto, the decision to revoke approval comes after both parties failed to meet the financial obligations tied to the transaction, despite multiple deadline extensions. “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, forcing the commission to cancel the deal,” Akinkuoto said. TotalEnergies and Chappal Energies have not issued public statements regarding the cancellation.
Industry sources indicate that Chappal Energies was unable to raise the $860 million required, which left TotalEnergies unable to cover regulatory fees, environmental rehabilitation costs, and other liabilities associated with its SPDC stake. The failed deal means Total retains its 10% stake in a joint venture plagued by operational challenges, oil spills, and security issues. SPDC’s other shareholders include the Nigerian National Petroleum Company (NNPC) with 55% and Italy’s Eni with 5%.
The collapse of the sale also affects TotalEnergies’ broader Nigerian portfolio, which includes 15 oil-producing licences yielding around 14,000 barrels of oil equivalent per day in 2023, alongside three gas licences accounting for 40% of its Nigeria LNG supply. The setback complicates Total’s strategy to offload high-cost, polluting assets and reduce its debt, which surged 89% to $25.9 billion as of July 2025.
TotalEnergies had previously indicated that the Nigerian sale, along with two other planned deals, would generate $3.5 billion by the end of 2025, helping to improve the company’s debt-to-equity ratio. Meanwhile, similar transactions have reshaped Nigeria’s oil sector, including Shell’s $2.4 billion sale of its SPDC onshore business and Seplat Energy’s $1.28 billion acquisition of ExxonMobil’s Nigerian shallow-water assets, marking a trend of portfolio restructuring among international oil majors in the region.
source: nairametrics