Chappal Energies has secured a 10% stake in TotalEnergies EP Nigeria Limited’s oil and gas assets for $860 million, pending final contractual and regulatory approvals.
The deal involves TotalEnergies’ non-operated interests in onshore and shallow water assets within the Shell Petroleum Development Company (SPDC) joint venture in Nigeria’s Niger Delta. The transaction is anticipated to close by December 31, 2024.
This acquisition includes a 10% interest in 15 oil mining leases (OMLs) and two major export terminals—Forcados and Bonny Terminals—part of the SPDC JV.
The Nigerian National Petroleum Corporation Limited (NNPC) holds a 55% stake in the JV, SPDC operates with a 30% stake, and the Nigerian Agip Oil Company (NAOC) has a 5% stake.
Additionally, Chappal Energies will acquire a 10% participating interest in three gas-producing OMLs within the SPDC JV: OML 23, OML 28, and OML 77.\
TotalEnergies will maintain an economic interest in these licenses, which represent 40% of Nigeria’s liquefied natural gas (LNG) supply. Chappal Energies will gain rights to undeveloped oil reserves in these three OMLs.
The financing for this strategic acquisition will be provided by a TotalEnergies entity and/or financial institutions chosen by TotalEnergies, Trafigura, and a consortium of international banks.
Chappal Energies sees this deal as a significant expansion of its Nigerian operations, diversifying its presence across offshore and onshore basins.
The company aims to enhance its asset base with over 40 producing fields, a network of pipelines, flow stations, processing facilities, and two major terminals.
Ufoma Immanuel, Managing Director of Chappal Energies, stated: “This acquisition represents a major milestone, diversifying our footprint in the Niger Delta and reinforcing our commitment to sustainable development.
We are poised to deliver substantial benefits to our stakeholders, including shareholders, employees, and local communities. The deal is subject to regulatory and contractual approvals.”
Chappal Energies focuses on unlocking value in Africa’s oil and gas sector, revitalizing aging assets, and ensuring sustainable, socially responsible operations.
The company plans to boost operational efficiency, manage produced water, enhance logistics, develop gas resources, optimize capital expenditure, and replace infrastructure to maximize value.
