NUPRC approves TotalEnergies’ $510m divestment in OML 118 to Shell, Agip

NUPRC approThe Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a $510 million Sales Purchase Agreement (SPA) that will see TotalEnergies Exploration and Production Nigeria Limited transfer its entire 12.5% stake in Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE).

Under the agreement, SNEPCo will acquire 10% of the interest for $408 million, while NAE will take up the remaining 2.5% for $102 million.

In a statement on Thursday, NUPRC spokesperson Eniola Akinkuotu said the Commission conducted due diligence in line with Section 95 of the Petroleum Industry Act (PIA) 2021 to confirm the financial capacity and technical competence of the assignees.

“SNEPCo and NAE have demonstrated both technical and managerial competence to optimally explore, develop, and produce in OML 118, where they already hold participating interests,” the Commission noted, adding that both companies have adequate funding to meet their obligations.

The Commission explained that the two companies will take on TotalEnergies’ decommissioning, abandonment, and host community liabilities related to the divested stake.

The transaction remains subject to ministerial consent, with SNEPCo and NAE expected to pay 5% and 2% of the deal’s value respectively as premiums and processing fees.

NUPRC added that TotalEnergies, which remains active in Nigeria’s upstream sector, has fulfilled all statutory requirements, including the payment of application fees for the deal.