TotalEnergies sells interest in SPDC JV

SPDC JV is an unincorporated joint venture between Nigerian National Petroleum Corp. Ltd (55%), Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%), which holds 18 licenses in the Niger Delta.

Under the SPA signed with Chappal Energies:

• TotalEnergies EP Nigeria will sell to Chappal Energies its 10% participating interest and all its rights and obligations in 15 licenses of SPDC JV, which are producing mainly oil. Production from these licenses represented approximately 14 000 boe/d in company share in 2023.
• TotalEnergies EP Nigeria will also transfer to Chappal Energies its 10% participating interest in the three other licenses of SPDC JV which are producing mainly gas (OML 23, OML 28, and OML 77), while retaining full economic interest in these licenses which currently account for 40% of Nigeria LNG gas supply.

The transaction was concluded for a firm consideration of US$860 million. Closing is subject to customary conditions, including regulatory approvals.

“TotalEnergies continues to actively manage its portfolio in Nigeria, in line with its strategy to focus on its oil offshore and gas assets. After the launch of the Ubeta gas development on OML58 license last month, this divestment of our interest in SPDC JV licenses allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and is designed to ensure the continuity of feed gas supply to Nigeria LNG in the future,” said Nicolas Terraz, President Exploration & Production of TotalEnergies.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22072024/totalenergies-sells-interest-in-spdc-jv/