Chappal Energies has entered into a Sale and Purchase Agreement (SPA) to take over TotalEnergy EP Nigeria Limitedâs 10% non-operated interest in its onshore and shallow water assets within the SPDC Joint Venture in the Niger Delta.
The aggregate consideration for the transaction is about $860 million, with financing to be provided by a TotalEnergies firm entity and any financial institution selected by TotalEnergies, Trafigura, and a syndicate of international banks.
The transaction is expected to close by December 31, 2024.
Reuters reports that the acquisition includes a 10% interest in 15 OMLs and two main export terminals in Nigeria, specifically the Forcados and Bonny Terminals, part of the Shell Petroleum Development Company Joint Venture.
In the agreement, Nigeria National Petroleum Company Limited (NNPC) has about 55% of the shares, SPDC operates with a 30% stake, and Nigeria Agip Oil Company has a 5% stake.
The transaction will also see Chappal Energies purchase a 10% participating interest in the three other OMLs within the SPDC Joint Venture, which are mostly gas-producing. At the same time, Total Energy will retail an economic interest in the licenses, which account for 40% of Nigeriaâs LNG gas supply.
According to reports, Chappal Energy will have the rights to the standalone undeveloped oil reserves within these 3 OMLs.
Reports say international banks will aid Chappalâs 10% stake in TotalEnergies asset acquisition.
The development comes as TotalEnergies disclosed that it is not exiting Nigeria.
With its $860 million sale and purchase agreement (SPA) with Chappal Energies, TotalEnergies has declared that it will not be departing the Niger Delta.Â
This occurred after TotalEnergies EP Nigeria, a subsidiary of the parent business, signed a SPA with Chappal Energies to sell its 10% stake in the SPDC JV licenses in Nigeria.
The company clarified that SPDC JV, which holds 18 licenses in the Niger Delta, is an unincorporated joint venture between Shell Petroleum Development Company of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%). Nigerian National Petroleum firm Ltd holds most of the shares (55%).
TimesNow.com.ng earlier reported that Shell Petroleum Development Company of Nigeria has reacted to its rumoured plan to leave Nigeria after selling its onshore business.
Shell announced it had reached an agreement with Renaissance Africa Energy to take over its oil business in Niger Delta
The announcement triggered reactions on various social media platforms, with many Nigerians expressing the opinion that Shell was leaving the country after active service since 1937.
Source: TimesNow.com.ng
