TotalEnergies sells onshore assets for $860m

French oil major, TotalEnergies, is planning to sell its onshore oil asset in Nigeria to an indigenous oil company, Chappal Energies, for the sum of $860 Million, as per Bloomberg report. The deal, set to be finalized by December 31, 2024, represents TotalEnergies’ strategic move to divest from Nigeria’s onshore segment in favour of a […]

French oil major, TotalEnergies, is planning to sell its onshore oil asset in Nigeria to an indigenous oil company, Chappal Energies, for the sum of $860 Million, as per Bloomberg report.

The deal, set to be finalized by December 31, 2024, represents TotalEnergies’ strategic move to divest from Nigeria’s onshore segment in favour of a more secure offshore environment.

The transaction involves acquiring a 10% stake in 15 oil mining leases, as well as ownership of the Forcados and Bonny export terminals, both critical assets within the Shell Petroleum Development Company (SPDC) joint venture.

Chappal’s financing will be sourced from an entity affiliated with TotalEnergies or a financial institution chosen by the French company, as stated.

Trading firm Trafigura and a consortium of global banks are also contributing funds.

Daily Trust reported that the CEO of the oil major, Patrick Pouyanne said that the company intends to restructure its portfolio, citing the growing challenges associated with oil production in the Niger Delta as a primary reason for the decision.