The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its earlier approval for TotalEnergies to sell its 10 percent stake in Shell Petroleum Development Company (SPDC) joint venture to Mauritius-based Chappal Energies. The decision halts the French oil major’s plan to offload ageing onshore assets and cut debt.
NUPRC spokesperson Eniola Akinkuoto confirmed that the withdrawal followed repeated failures to meet financial commitments tied to the October 2024 ministerial approval. “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,” he said.
Industry sources revealed that Chappal Energies was unable to raise the $860 million required for the acquisition. Consequently, TotalEnergies did not fulfil its obligations to pay regulatory fees and provide funds for environmental rehabilitation and liabilities.
The collapsed sale leaves TotalEnergies with its 10 percent interest in 15 oil-producing licences and three gas fields supplying 40 percent of Nigeria LNG feedstock. These assets, despite yielding about 14,000 barrels of oil equivalent per day in 2023, have been plagued by oil spills, theft, and costly operational challenges.
TotalEnergies had projected the transaction as part of a broader plan to raise $3.5 billion from divestments in 2025, aimed at reducing its $25.9 billion debt burden. The setback follows Shell’s $2.4 billion sale of its SPDC stake to Renaissance Africa Energy in March 2025 and Seplat Energy’s $1.28 billion acquisition of ExxonMobil’s Nigerian shallow-water assets in December 2024.
With NNPC holding 55 percent and Italy’s Eni five percent in the SPDC venture, the failed deal complicates TotalEnergies’ divestment strategy in Nigeria’s energy sector.
