The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved the Sales Purchase Agreement (SPA) between TotalEnergies Exploration and Production Nigeria Limited and two buyers, Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE). The deal transfers TotalEnergies’ 12.5 percent interest in Oil Mining Lease (OML) 118 and was granted under Section 95 of the Petroleum Industry Act 2021.
Before giving its approval, the Commission conducted due‑diligence on SNEPCo to assess its financial capacity and technical competence. The SPA specifies that TotalEnergies will sell 10 percent of its interest to SNEPCo for $408 million, while NAE will acquire the remaining 2.5 percent for $102 million. Both buyers already hold participating interests in OML 118 and have demonstrated the necessary technical and managerial expertise, as well as access to funding to meet their financial obligations.
The NUPRC’s approval, valued at $510 million, is a significant development for Nigeria’s oil and gas sector. It reinforces the country’s commitment to attracting investment and promoting industry growth, and is expected to have a positive impact on upstream operations in the lease—an area of key focus for the industry. The Commission’s rigorous evaluation process ensures that the transfer of interests serves the best interests of both the sector and the nation.
The Petroleum Industry Act 2021 provides the regulatory framework for Nigeria’s oil and gas industry, and the NUPRC’s endorsement of the SPA demonstrates its dedication to implementing the Act’s provisions. The transaction also reflects growing interest in Nigeria’s energy landscape, with international companies such as TotalEnergies, Shell and Agip playing significant roles.
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