According to a document seeking interest, TotalEnergies has initiated the sale of its 10% stake in the Nigerian joint venture Shell Petroleum Development Company, SPDC, with Scotiabank of Canada serving as the financial advisor.
TotalEnergies announced the sale in late April, while Scotiabank declined to comment on the transaction. The financial adviser was not mentioned by TotalEnergies.
TotalEnergies stated it was selling its stake in 13 onshore and three shallow-water fields with a combined production capacity of nearly 20,000 barrels of oil equivalent per day. The deal includes pipelines connecting to two major petroleum export terminals, Bonny and Forcados, totalling 3,500 kilometres.
The French firm will retain OMLs 23 and 28 as well as its stake in the accompanying gas pipeline network that feeds Nigeria LNG. Due to years of sabotage and theft that have deteriorated assets across the oil-rich delta region, major oil corporations have been gradually quitting Nigeria’s onshore production.
SPDC is a joint venture in which Shell has a 30% working interest, NNPC has a 55% working interest, and Eni has a 5% working interest. Shell is also selling its SPDC stake, although the process has been stymied by a legal battle.
Recall that, TotalEnergies blamed the disturbance of local communities, which has been a cause of significant concern, for its plans to join the bandwagon of other oil majors and sell its part in an onshore oil production joint venture in Nigeria.
Total Energies’ Chief Executive Officer, Patrick Pouyanne, announced during a results conference call that the French oil major will sell its 10% stake in a company that operates 20 licenses onshore Nigeria.
The joint venture is 55 per cent owned by NNPC, with Shell, the operator, owning a 30 per cent operating stake and Eni 5 per cent.
Oil majors have been selling their onshore and shallow water assets to Nigerian independent producers for more than a decade.
Shell began a substantial disposal of its Nigerian assets in July 2021, with the planned sale of the company’s shallow-water and onshore asset interests in the SPDC joint venture, which supplies around 10% of Nigeria’s gas consumption.
This is because it no longer considers its activities in the Niger Delta to be central to its overall strategy, which is driven by investor pressure on Environmental, Social, and Governance (ESG).
Seplat Energy Plc stated on February 25 that it had reached a deal with Exxon Mobil Corporation, Delaware to buy the full share capital of Mobil Producing Nigeria Unlimited for $1.28 billion.