The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a landmark Sales Purchase Agreement (SPA) enabling TotalEnergies Exploration and Production Nigeria Limited to divest its entire 12.5% contractor interest in Oil Mining Lease (OML) 118.
Under the deal, Shell Nigeria Exploration and Production Company (SNEPCo) will acquire 10% for $408 million, while Nigerian Agip Exploration (NAE) will purchase 2.5% for $102 million. NUPRC confirmed that both firms met financial and technical due diligence requirements pursuant to Section 95 of the Petroleum Industry Act 2021.
As part of the transaction, SNEPCo and NAE will assume decommissioning, abandonment, and host community liabilities previously held by TotalEnergies. The divestment remains subject to ministerial consent, with the Commission expecting both buyers to pay a combined 7% premium ($35.7m) on the $510m transaction value. The transaction consolidates operator capacity in OML 118, ensuring long-term operational stability and sustaining Nigeria’s upstream investment momentum.
