TotalEnergies has announced its intention to sell its minority stake in a significant Nigerian onshore oil joint venture following Shell’s recent divestment from the same venture.
During a presentation of the company’s financial results, CEO Patrick Pouyanne outlined plans to restructure the company’s portfolio due to challenges in producing oil in the Niger Delta.
“We want to divest our share of SPDC, and we are looking to reshape the portfolio,” Pouyanne stated. “Fundamentally, it’s because producing this oil in the Niger Delta is not in line with our Health, Security, and Environmental policies; it’s a real difficulty.”
However, Pouyanne noted that the company intends to retain its Nigerian gas assets, considering them essential for future expansion in liquefied natural gas development over the coming years.
The Shell Petroleum Development Company of Nigeria Limited (SPDC), in which TotalEnergies holds a 10% interest, has faced challenges such as onshore oil spills from theft, sabotage, and operational issues, resulting in costly repairs and legal battles.
TotalEnergies’ decision to divest from Nigeria’s onshore sector aligns with a trend among International Oil Companies (IOCs) seeking to reduce operations in this area. Despite this move, the company remains a significant player in the country’s offshore fields.
Earlier, TotalEnergies announced the commencement of operations at the 14,000 bpd Akpo West oilfield located 135 kilometres off the coast.
The Nigerian onshore oil industry has seen major international oil companies exit, paving the way for local players to take over operations. Last month, Shell agreed to sell its 30% stake in SPDC to a consortium of local companies for up to $2.4 billion. Similarly, other international oil companies like ExxonMobil and Norway’s Equinor have divested assets in Nigeria to focus on newer, more profitable operations elsewhere.
