NUPRC clears $510m TotalEnergies divestment after due diligence on Shell, Agip

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says its approval of TotalEnergies’ $510 million divestment in Oil Mining Lease (OML) 118 was granted only after a comprehensive due diligence exercise confirmed the technical and financial capacity of the assignees, Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE).

In a statement signed by its Head of Media and Strategic Communications, Eniola Akinkuotu, the regulator explained that the review was conducted under Section 95 of the Petroleum Industry Act (PIA) 2021, with particular attention to the assignees’ competence, track record, and ability to assume future obligations.

The commission said it ensured that the transaction met all financial, technical, and legal requirements before giving consent. Both SNEPCo and NAE already have operational interests in OML 118 and the capacity to sustain exploration and production, it said.

Under the approved arrangement, TotalEnergies will divest 10 per cent to SNEPCo for $408 million and 2.5 per cent to NAE for $102 million, subject to ministerial consent.

NUPRC said the companies would also take over TotalEnergies’ decommissioning, abandonment, and host community obligations tied to the divested stake, insulating the Federal Government from potential liabilities. In addition, SNEPCo and NAE will pay statutory premiums of five per cent and two per cent of the transaction value as ministerial consent and processing fees.

The Commission stressed that the decision underscores its commitment to enforcing accountability in Nigeria’s upstream sector, especially as International Oil Companies (IOCs) streamline portfolios and regulators tighten oversight on decommissioning and host community responsibilities.

The approval comes days after NUPRC revoked an earlier consent for a TotalEnergies–Chappal Energies transaction, citing poor consummation.