The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved TotalEnergies’ plan to sell its 12.5 percent contractor interest in Oil Mining Lease (OML) 118. Under the deal, Shell Nigeria Exploration and Production Company (SNEPCo) will acquire 10 percent for $408 million, while Nigerian Agip Exploration (NAE) will take 2.5 percent for $102 million.
NUPRC’s Head of Media, Mr. Eniola Akinkuotu, confirmed the approval yesterday. He said the Commission carried out checks on both companies as required under the Petroleum Industry Act (PIA) 2021.
The regulator stated that SNEPCo and NAE showed strong technical skills, financial strength, and management capacity to run upstream operations in the block. Both firms already hold stakes in OML 118 and have proven records in exploration and production.
“The companies demonstrated access to funding and the capacity to meet financial obligations. They will also handle all liabilities tied to decommissioning and abandonment,” NUPRC said.
The Commission explained that TotalEnergies had paid all statutory application fees for the transfer. However, the deal still requires ministerial consent as set out under the PIA.
As part of the conditions, SNEPCo and NAE must pay 5 percent and 2 percent of the $510 million transaction value as premium for ministerial consent and processing fees.
They are also required to commit in writing that they will take on decommissioning, abandonment, and host community liabilities previously owed by TotalEnergies.
NUPRC said the approval reflects the regulator’s role in ensuring smooth transactions in Nigeria’s oil sector while protecting government interests under the PIA framework.
