AISHAT BAKARE
TotalEnergies’ planned sale of a minority stake in a Nigerian onshore oil producer has collapsed after regulators withdrew their earlier approval. The French oil major had agreed in July 2024 to sell its 10% interest in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Mauritius-based Chappal Energies.
The move was part of a broader strategy by international oil companies to divest from mature, pollution-prone onshore assets in Nigeria and channel investment into newer, more profitable operations Approval for the sale, originally granted in October 2024, was rescinded because the parties failed to meet key financial obligations tied to the deal, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines.
However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal, NUPRC spokesperson said on today.
