TotalEnergies Sells 10% Stake in Nigerian Oil Assets for $800 Million

TotalEnergies Sells 10% Stake in Nigerian Oil Assets for $800 Million

French energy giant TotalEnergies SE has completed the sale of its 10 per cent non-operated interest in the Renaissance joint venture’s oil licences in Nigeria to Vaaris for $800 million.

The transaction marks another step in the company’s gradual withdrawal from Nigeria’s onshore oil operations, while retaining its full economic interest in key gas assets supplying the country’s largest liquefied natural gas (LNG) export facility.

According to a statement sent to BusinessDay, the deal was completed by TotalEnergies EP Nigeria (TEPNG), the company’s Nigerian subsidiary.

However, further findings by BusinessDay indicate that TotalEnergies will retain its full economic interest in three gas licences operated under the Renaissance joint venture: OML 23, OML 28 and OML 77.

The three assets currently account for approximately 50 per cent of the gas supplied to Nigeria LNG’s export facility on Bonny Island, Rivers State. TotalEnergies is also a shareholder in the LNG plant.

The divestment comes amid persistent operational challenges facing oil producers in the Niger Delta, where crude oil theft, pipeline vandalism and oil spills have disrupted production and increased operating costs.

These challenges have also exposed companies operating onshore to legal disputes and reputational risks, making the sector increasingly difficult to manage.

By selling its interest in the oil licences while retaining its economic exposure to the associated gas assets, TotalEnergies is reducing its direct involvement in Nigeria’s onshore oil business while maintaining a significant position in the country’s gas and LNG value chain.

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