(Bloomberg) -- Chappal Energies Mauritius Ltd. agreed to buy TotalEnergies SE’s 10% stake in oil and gas assets in Nigeria for $860 million, as oil majors continue exiting problematic onshore operations in the West African nation.
The deal includes a 10% interest in 15 oil mining leases and the Forcados and Bonny export terminals, which are part of the Shell Petroleum Development Co. joint venture, Nigerian-owned Chappal Energies said in a statement Wednesday.
Production from those licenses represented approximately 14,000 barrels equivalent per day for TotalEnergies last year, the French energy giant said in a separate statement. TotalEnergies will also transfer to Chappal Energies its 10% interest in the three other licenses of the SPDC JV, which are producing mainly gas.
Oil majors in Nigeria have been offloading onshore and shallow water blocks — where infrastructure damage from crude theft is a regular occurrence — to domestic producers for more than a decade. The trend is accelerating as international firms focus on liquefied natural gas and deep-water projects in Africa’s largest oil producer.
The deal allows the company to focus on offshore oil, while its onshore business is “designed to ensure the continuity of feed gas supply to Nigeria LNG in the future,” Nicolas Terraz, president exploration and production of TotalEnergies, said in the statement.
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Chappal’s financing will be provided by an entity related to TotalEnergies or financial institutions selected by the French company, according to the statement. Trading house Trafigura Group and a syndicate of international banks are also providing funds. The deal is expected to close by Dec. 31.
Little-known Chappal Energies last November agreed to buy Nigerian oil and gas assets from Norway’s Equinor ASA for an undisclosed amount.
(Updates with TotalEnergies’s comments and details from third paragraph.)
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