The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved the Sales Purchase Agreement (SPA) between TotalEnergies Exploration and Production Nigeria Limited and two buying companies, Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE). The deal involves the transfer of TotalEnergies’ 12.5 per cent interest in Oil Mining Lease (OML) 118.
According to the NUPRC, the approval was granted pursuant to Section 95 of the Petroleum Industry Act 2021. The Commission conducted due diligence on SNEPCo to assess its financial capacity and technical competence before giving the green light. The SPA details reveal that TotalEnergies will sell 10 per cent of its interest to SNEPCo for $408 million, while NAE will acquire the remaining 2.5 per cent for $102 million.
The NUPRC stated that SNEPCo and NAE have demonstrated the necessary technical and managerial expertise to contribute to the upstream operations in OML 118. Both companies already hold a participating interest in the asset and have shown evidence of access to funding to meet their financial obligations. The Commission’s approval is a significant development in the Nigerian oil and gas sector, as it reinforces the country’s commitment to attracting investment and promoting industry growth.
The deal is valued at $510 million, with SNEPCo and NAE set to expand their presence in OML 118. The NUPRC’s decision is expected to have a positive impact on the upstream operations in the lease, which is a key area of focus for the Nigerian oil and gas industry. The Commission’s rigorous evaluation process ensures that the transfer of interests is in the best interest of the industry and the country.
The Petroleum Industry Act 2021 provides a framework for the regulation of the oil and gas industry in Nigeria, and the NUPRC’s approval of the SPA is a testament to the Commission’s commitment to implementing the Act’s provisions. The deal is also a reflection of the growing interest in Nigeria’s oil and gas sector, with international companies like TotalEnergies, Shell, and Agip playing a significant role in the country’s energy landscape.
