The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the federal government has withdrawn its ministerial consent for the divestment deal between TotalEnergies and Chappal Energies.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 follows Chappal Energies’ failure to complete the transaction after receiving approval on 28 October 2024.
Initially, the NUPRC 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 encompassed TotalEnergies’ interests in several oil mining leases (OMLs) across Nigeria, including OML 20, 21, 22, 25, 27, 31, 32, 33, 35, 36, 43, 45, 46, 74 and 79.
Although the NUPRC provided extensions, Chappal Energies did not consummate the agreement, prompting the commission to withdraw the ministerial consent on 29 May 2025. The NUPRC stressed that this withdrawal does not preclude a future divestment by the parties, provided any subsequent transaction complies with existing laws.
The action aligns with the NUPRC’s commitment, under the Petroleum Industry Act, to foster a favorable investment environment for upstream petroleum operations. The commission remains dedicated to ensuring that all sector transactions are conducted lawfully and in the best interests of the country.
The withdrawal of consent for the TotalEnergies‑Chappal Energies deal underscores the NUPRC’s regulatory role and highlights the importance of meeting regulatory requirements and timelines. As the petroleum industry evolves, stakeholders and investors will closely monitor the NUPRC’s actions while navigating the complexities of Nigeria’s oil and gas market.
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