TotalEnergies Plans to Sell its Nigerian Onshore Oil Assets

Following Shell’s divestment, Patrick Pouyanne, the chief executive officer (CEO) of TotalEnergies said that the company is planning to offload its minority stake in a significant Nigerian onshore oil joint venture. He made this known during the presentation of the company’s financial report.

Pouyanne says the development is due to theft, sabotage, and operational difficulties, the Shell Petroleum Development Company of Nigeria Limited (SPDC), in which TotalEnergies owns a 10% stake, has experienced multiple onshore oil spills that have cost-prohibitive repairs and significant legal disputes throughout the years.

This and more have made it so hard to produce oil in the Niger Delta making the company consider restructuring its portfolio.

He said, “We want to divest our share of SPDC and we are looking to reshape the portfolio…..Fundamentally it’s because producing this oil in the Niger Delta is not in line with our [Health Security and Environmental] policies, it’s a real difficulty.”

However, the company plans to hold onto its gas assets in Nigeria because it believes these will be crucial to its future growth in the development of liquefied natural gas in the future.

Facts to know

• After decades of operations, TotalEnergies is the latest in a long line of International Oil Companies (IOCs) looking to exit Nigeria’s onshore market. The French firm is still a major operator in the nation’s offshore fields despite this shift.
• This week, the company declared the beginning of operations at its 14000 barrel per day (bpd) Akpo West oilfield situated 135 kilometers off the coast.
• Earlier this year, Shell announced to sell 30% of its stake in SPDC to Renaissance, a consortium of five companies based in Nigeria and an international energy group, for up to $2.4 billion. This new development will thus give way for local players to explore the space.
• Other partners in the joint venture are the state’s Nigerian National Petroleum Corporation (NNPC), which owns 55% and Italy’s Eni with 5%.

About TotalEnergies in Nigeria

Having been in Nigeria for over 50 years, TotalEnergies currently employs over 1,800 individuals in a variety of economic sectors. Nigeria is one of the primary suppliers of hydrocarbons to TotalEnergies, from which the company generated 219,000 boe/d (barrels of oil equivalent per day) in 2023.

TotalEnergies also manages a large distribution network which includes over 540 service stations in the country. In all its operations, TotalEnergies is particularly attentive to the socio-economic development of the country and is devoted to working with local communities.

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