The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says its decision to approve TotalEnergies’ $510 million divestment in Oil Mining Lease (OML) 118 was anchored on a rigorous due diligence process that confirmed Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE) have the financial muscle and technical expertise to take over.
In a statement issued in Abuja by its Head of Media and Strategic Communications, Eniola Akinkuotu, the Commission said the evaluation was carried out under Section 95 of the Petroleum Industry Act (PIA) 2021 and established that both assignees possess the competence to sustain exploration, development, and production in the asset.
Under the agreement, SNEPCo will acquire 10 per cent of TotalEnergies’ stake for $408 million, while NAE will take 2.5 per cent for $102 million, subject to ministerial consent.
NUPRC also confirmed that the two firms would assume responsibility for decommissioning, abandonment, and host community obligations, ensuring the Federal Government is shielded from residual liabilities. As part of the approval terms, they must pay statutory premiums of five per cent and two per cent of the transaction value, respectively.
The regulator said the move reflects its insistence on accountability in asset transfers, especially as international oil companies continue to divest from onshore and shallow-water portfolios.
The approval follows the Commission’s recent withdrawal of consent for a TotalEnergies–Chappal Energies deal over poor consummation, signalling that only fully compliant transactions will be cleared going forward.
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