KEY POINTS
- NUPRC approves $510 million oil sector deal.
- Shell and Agip expand stakes in OML 118.
- Oil deal approval requires ministerial consent.
Nigeria’s upstream oil regulator has approved TotalEnergies’ plan to transfer its 12.5 percent stake in Oil Mining Lease 118 to Shell Nigeria Exploration and Production Company and Nigerian Agip Exploration. The deal, valued at $510 million, marks another shift in ownership of one of the country’s most significant deepwater assets.
According to details of the agreement, Shell will acquire a 10 percent share for $408 million, while Agip will take the remaining 2.5 percent for $102 million. The Nigerian Upstream Petroleum Regulatory Commission said it reached the decision after a review under Section 95 of the Petroleum Industry Act 2021, which requires due diligence on the technical capacity and financial standing of the assignees.
Oil deal approval under PIA
The regulator explained that Shell and Agip demonstrated both financial capability and operational experience to sustain exploration and production in OML 118. Both companies already maintain existing stakes in the block, which includes the producing Bonga field offshore Nigeria.
“SNEPco and NAE have proven their managerial and technical competence to manage the asset efficiently,” the Commission said in its statement. “They also have access to sufficient funding to meet their obligations.”
The NUPRC added that TotalEnergies, which has remained a committed investor in Nigeria’s upstream sector, paid the statutory application fee for the transaction. Under the terms of the approval, Shell and Agip will assume decommissioning, abandonment, and host community obligations tied to the divested interest.
TotalEnergies divestment and obligations
The Commission emphasised that the transfer remains subject to ministerial consent, in line with the provisions of the Petroleum Industry Act, according to Business Day. It further disclosed that Shell and Agip are expected to pay 5 percent and 2 percent, respectively, of the total $510 million value as premiums for consent and processing.
By completing this assignment, TotalEnergies effectively exits its 12.5 percent stake, while Shell and Agip deepen their exposure in one of Nigeria’s most strategic deepwater operations.
