The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the federal government has withdrawn its ministerial consent for the divestment deal between TotalEnergies and Chappal Energies. This decision was made due to Chappal Energies’ failure to complete the transaction after receiving approval on October 28, 2024.
The NUPRC had initially granted ministerial consent for the transfer of TotalEnergies’ 10% participating interest in the Nigerian National Petroleum Company Limited (NNPCL) and Shell Petroleum Development Company (SPDC) Joint Venture to Chappal Energies. The deal involved TotalEnergies’ interests in various oil mining leases (OMLs) in Nigeria’s oil fields, including OMLs 20, 21, 22, 25, 27, 31, 32, 33, 35, 36, 43, 45, 46, 74, and 79.
Despite extensions granted by the NUPRC, Chappal Energies failed to consummate the deal, prompting the commission to withdraw the ministerial consent on May 29, 2025. The NUPRC emphasized that this decision does not preclude the possibility of a future divestment by the parties involved, provided that such a transaction complies with existing laws.
The withdrawal of the ministerial consent is in line with the NUPRC’s commitment to promoting a favorable environment for investments in upstream petroleum operations, as stipulated in the Petroleum Industry Act. The commission remains dedicated to ensuring that all transactions in the sector are conducted in accordance with the law and in the best interests of the country.
The withdrawal of the ministerial consent for the TotalEnergies and Chappal Energies deal serves as a reminder of the NUPRC’s role in regulating the petroleum industry in Nigeria. The commission’s decision highlights the importance of adhering to regulatory requirements and timelines in the completion of transactions in the sector. As the petroleum industry continues to evolve, the NUPRC’s actions will be closely watched by stakeholders and investors seeking to navigate the complexities of the Nigerian oil and gas market.
