Nigeria’s oil regulator has withdrawn its earlier consent for the planned sale of TotalEnergies’ stake in a major oil venture to Chappal Energies, citing unmet financial obligations.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed on Wednesday that Chappal failed to mobilize the required funds for the $860 million acquisition. This shortfall meant TotalEnergies could not settle mandatory fees, including payments meant for environmental cleanup and future liabilities.
“The approval granted came with specific financial duties tied to the Nigerian people and clear deadlines. After several extensions, neither side met those obligations, leaving us no choice but to revoke the consent,” said NUPRC spokesperson Eniola Akinkuotu.
With the cancellation, the assets in question revert fully to TotalEnergies.
Background to the Transaction
TotalEnergies, which has operated in Nigeria for decades, announced in 2022 that it was exiting certain onshore oil and shallow-water operations. The assets for sale included stakes in 13 oil fields and three gas-rich fields, along with about 3,500 kilometers of pipelines connected to key export terminals.
In July 2024, the company signed a sale and purchase agreement with Chappal Energies to transfer its 10% interest in the Shell Petroleum Development Company (SPDC) joint venture. The transaction, valued at $860 million, was subject to regulatory approval and financial closure.
However, the inability of Chappal to meet funding and compliance conditions has now brought the deal to an abrupt end.
Meanwhile, TotalEnergies has reaffirmed its broader commitment to Nigeria, disclosing plans to invest up to $6 billion in gas projects, even as it scales back involvement in Niger Delta oil production to align with its health, safety, and environmental standards.
