TotalEnergies has revealed its intention to sell off its minority share in the Shell Petroleum Development Company of Nigeria Limited (SPDC), a major onshore oil joint venture in Nigeria. The decision was confirmed by TotalEnergies’ CEO, Patrick Pouyanne, during the company’s financial results presentation. TotalEnergies holds a 10% interest in SPDC and aims to restructure its portfolio due to the challenging nature of oil production in the Niger Delta.
Patrick Pouyanne emphasized the company’s plan to divest its stake in SPDC, citing the divergence from their Health, Security, and Environmental (HSE) policies and the operational difficulties in the Niger Delta. However, TotalEnergies expressed its commitment to retaining its Nigerian gas assets, recognizing their strategic importance for future expansion in liquefied natural gas (LNG) development.
Earlier this year, Shell announced its proposal to sell a 30% stake in SPDC to Renaissance, a consortium comprising five Nigerian companies and an international energy group, for a reported amount of up to $2.4 billion. The SPDC joint venture includes SPDC Ltd (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
TotalEnergies’ decision to exit the Nigerian offshore oil business reflects a broader industry trend and raises questions about the future developments in the Nigerian oil and gas sector.
