KEY POINTS
- TotalEnergies plans to sell its 10 percent SPDC stake.
- The deal follows a failed $860 million sale last year.
- Regulatory approval is still required in Nigeria.
TotalEnergies has struck a fresh deal to exit part of Nigeria’s onshore oil sector, agreeing to sell its minority stake in the former Shell Petroleum Development Company joint venture after an earlier attempt collapsed under regulatory scrutiny.
New buyer steps in
The French energy company said on Wednesday that it has signed an agreement to sell its 10 percent non-operated stake in the Nigerian onshore oil asset known as SPDC, now renamed the Renaissance joint venture, to Vaaris. The announcement follows a failed sale last year to Mauritius-based Chappal Energies, which Nigerian regulators blocked after questioning the buyer’s ability to finance the transaction.
The latest deal also covers interests in three other licences that produce mainly gas for Nigeria LNG. TotalEnergies said it will retain full economic interest in those gas-producing assets, even as it steps back from the onshore oil operations. The company did not disclose the value of the transaction or provide additional details on the structure of the agreement.
Company registration records show that Vaaris Resources JV Co. Limited was incorporated in Nigeria on December 22, 2025. TotalEnergies offered no further information on the new buyer, and did not comment on how the group plans to fund the acquisition. The transaction remains subject to approval by Nigerian regulators.
Asset sales face long hurdles
TotalEnergies’ renewed attempt to sell the SPDC stake comes after a difficult year for divestments in Nigeria. In 2024, regulators blocked the company’s proposed $860 million sale to Chappal Energies, dealing a setback to efforts by the French major to dispose of mature onshore assets that have become costly to operate and maintain. The sale was part of a broader push to reduce exposure to assets linked to pollution risks and to lower debt.
SPDC has long been plagued by operational challenges. The joint venture has recorded hundreds of oil spills over the years, largely linked to theft, sabotage and ageing infrastructure. Those incidents have resulted in expensive repairs, production losses and a series of high-profile lawsuits that have weighed on the asset’s reputation and economics.
Other international oil companies have also moved to reduce their exposure. Last year, Shell completed the sale of its 30 percent stake in SPDC to a consortium of five companies, most of them Nigerian, in a deal valued at up to $2.4 billion. Despite those exits, the joint venture remains a significant part of the country’s oil industry.
The Nigerian National Petroleum Corporation holds 55 percent of the venture, while Italy’s Eni owns the remaining 5 percent. According to Reuters, approval from Nigerian regulators is still required before TotalEnergies can complete the sale to Vaaris.
