The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given its approval for a $510 million Sales Purchase Agreement (SPA) between TotalEnergies Exploration and Production Nigeria Ltd. and Shell Nigeria Exploration and Production Company (SNEPco) and Nigerian Agip Exploration Limited (NAE).
According to the agreement, TotalEnergies will transfer its entire 12.5% contractor interest in Oil Mining Lease (OML) 118 to SNEPco and NAE. SNEPco will pay $408 million for 10% of the interest, while NAE will pay $102 million for the remaining 2.5%.
The NUPRC stated that SNEPco and NAE have demonstrated both technical and managerial competence to contribute to upstream operations in OML 118. They already maintain a participating interest in the asset and have access to funding to meet their financial obligations.
The commission noted that the divestment is subject to ministerial consent in line with Sections 95(1), (2), (7), (11), and 12 of the Petroleum Industry Act, 2021. SNEPco and NAE are expected to pay 5% and 2% of the transaction value, respectively, as premium on ministerial consent and processing fees.
The NUPRC emphasized that SNEPco and NAE will bear all decommissioning, abandonment, and host community liabilities owed by TotalEnergies to the Federal Government of Nigeria. TotalEnergies has paid the statutory application fee for the deal.
The approval of this deal reflects the government’s efforts to promote an enabling environment for investments in upstream petroleum operations. The NUPRC’s decision is seen as a significant development in Nigeria’s oil and gas sector.
