TotalEnergies has divested its 10% stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Chappal Energies, a Mauritius-based company, for $860 million. The French company decided on the sale due to growing discontent over recurring oil spills that are the result of oil theft, sabotage, and operational issues. The sale will see Chappal Energies take over Total’s erstwhile interests in 15 oil-producing licenses, which netted 14,000 barrels of oil-equivalent per day in 2023, and three gas licenses which supply 40% of TotalEnergies’ Nigeria LNG production. TotalEnergies will retain its share of gas production as well as its access to the infrastructure and pipeline that supply Nigeria’s LNG. According to the company’s president of exploration & production, the move allows TotalEnergies to focus on the integrated gas value chain in Nigeria. The divestment is expected to close by year-end, barring regulatory issues.
SOURCE: BUSINESS INSIDER
