French energy giant TotalEnergies has announced the sale of its stakes in three key gas-producing licenses in Nigeria to a Mauritian company.
These licenses currently account for 40% of Nigeria’s LNG production. Despite this divestment, TotalEnergies will maintain ownership of its production share and access to critical infrastructure and pipelines supplying gas to the Nigeria LNG plant.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, stated, “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.”
This move follows earlier indications from the company’s CEO about plans to divest its 10% stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC). The decision comes amid challenges including oil spills, theft, and operational issues, which have led to significant rehabilitation costs and high-profile lawsuits, according to Reuters.
The completion of the acquisition is pending regulatory approvals and is expected to conclude by the end of this year.
Despite this divestment, TotalEnergies reaffirmed its commitment to Nigeria in 2023 by announcing a $6 billion investment plan over several years, focusing on gas and offshore projects. Nigeria remains a significant contributor to TotalEnergies’ global operations, accounting for 8-10% of its global production and over 18% of its global investments. In 2023, the company produced 219,000 barrels of oil equivalent per day in Nigeria.
