FG Blocks TotalEnergies’ $860m Asset Sale
The Federal Government has halted TotalEnergies’ planned $860 million divestment from Nigeria’s onshore oil sector after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) withdrew its earlier approval for the transaction.
The move deals a blow to the French energy giant’s strategy to cut back on ageing, high-cost assets and reduce its swelling debt burden.
TotalEnergies had, in July 2024, signed a sale and purchase agreement to transfer its 10 per cent stake in Shell Petroleum Development Company (SPDC) joint venture to Mauritius-based Chappal Energies. The deal, which covered 15 oil licences producing about 14,000 barrels of oil-equivalent per day and three gas licences supplying 40 per cent of Nigeria LNG’s feedstock, received ministerial consent in October 2024, subject to stringent financial obligations.
NUPRC spokesperson Eniola Akinkuoto confirmed on Tuesday that the consent was revoked after both companies failed to meet regulatory conditions, including the payment of fees, funding for environmental remediation, and provisions for future liabilities. Industry sources said Chappal was unable to raise the $860 million, leaving Total unable to meet its side of the financial commitments despite repeated extensions.
The collapse of the deal keeps TotalEnergies tied to assets that have long been plagued by oil theft, sabotage and frequent spills, resulting in costly repairs and reputational pressure.
The company, which saw its debt surge 89 per cent year-on-year to $25.9 billion in July 2025, had projected the Nigerian exit as one of three disposals expected to generate $3.5 billion in proceeds before year-end and ease its debt-to-equity ratio, which rose to 28 per cent mid-year.
The SPDC joint venture is majority-owned by NNPC Limited with 55 per cent, while Eni holds 5 per cent. Shell, which until recently controlled 30 per cent, completed the sale of its stake in March 2025 to Renaissance Africa Energy for $2.4 billion.
Similarly, Seplat Energy concluded its $1.28 billion acquisition of ExxonMobil’s shallow-water assets in December 2024 after years of delays, reflecting the wider push by international oil companies to retreat from Nigeria’s onshore and shallow-water operations in favour of local independents.
For TotalEnergies, the blocked divestment underscores the growing difficulty facing multinationals seeking to exit Nigeria’s onshore sector, where regulatory hurdles and financial risks continue to weigh heavily on transactions. Both TotalEnergies and Chappal Energies declined to comment on the development.
