TotalEnergies has announced the sale of its participation stake in three additional licenses, primarily generating gas, to a Mauritian company. These assets currently contribute 40% of Nigeria’s LNG production.
Despite the divestment, TotalEnergies will retain its production share, ensuring continued access to essential infrastructure and pipelines required for supplying gas to the Nigeria LNG plant.
“This divestment allows us to concentrate our onshore Nigeria operations solely on the integrated gas value chain and is intended to ensure uninterrupted feed gas supply to Nigeria LNG in the future,” stated Nicolas Terraz, President of Exploration & Production at TotalEnergies.
Since February, the CEO of TotalEnergies has indicated plans to divest its 10% stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC). This decision stems from various challenges, including oil spills, theft, and operational issues, which have necessitated significant funds for rehabilitation and resulted in high-profile lawsuits, according to a Reuters report.
The acquisition’s completion is subject to regulatory approvals and is expected by the end of this year.
TotalEnergies reaffirmed its commitment to Nigeria last year by announcing a $6 billion (5.5 billion euros) investment plan over several years in the nation’s oil and energy sector, with a particular focus on gas and offshore projects.
Nigeria represents between eight to ten percent of TotalEnergies’ global production and contributes over eighteen percent to its global investments. In 2023 alone, the company produced 219,000 barrels of oil equivalent per day in Nigeria.
After several decades of operations, TotalEnergies joins other foreign oil companies in exiting Nigeria’s onshore market.
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