NUPRC Blocks TotalEnergies’ $860m Nigeria Exit Deal

In a major development for Nigeria’s oil sector, French energy giant TotalEnergies has suffered a significant setback in its plans to exit high-risk onshore oilfields. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially withdrawn its approval for the company’s $860 million sale of a 10% stake in the Shell Petroleum Development Company (SPDC) joint venture to Chappal Energies.

According to the commission, TotalEnergies failed to fulfill key financial and regulatory obligations required to complete the transaction. The move effectively halts the French firm’s strategy to shed its onshore, pollution-prone assets in favor of offshore production and liquefied natural gas (LNG) operations — a plan that had been central to the company’s global restructuring strategy.

Industry experts say this development highlights the complexities of divesting oil assets in Nigeria. “Even multinational firms with extensive experience face hurdles when navigating local regulatory frameworks,” noted an energy analyst. The decision exposes the layers of scrutiny and compliance required to successfully transfer ownership of onshore oil assets in the country.

For TotalEnergies, the withdrawal of approval not only delays the sale but raises questions about how foreign operators can effectively manage and divest onshore assets without running afoul of regulatory standards. It also underscores the broader challenge of balancing environmental and operational risks while executing strategic corporate restructuring in Nigeria’s oil and gas sector.

The collapse of the $860 million deal serves as a cautionary tale for global investors eyeing Nigeria’s onshore oilfields. Analysts predict that TotalEnergies may need to renegotiate terms or engage more closely with regulators to restart the divestment process.

TotalEnergies’ $860 million sale of a 10% stake in Nigeria’s SPDC onshore joint venture collapses as NUPRC withdraws approval, highlighting challenges for foreign firms divesting oil assets.