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Nigeria approved TotalEnergies sale of its stake in a block that includes the Bonga field to Shell Plc and Nigerian Agip Exploration, marking progress in the French major’s strategy to restructure assets and pay down debt.
Shell Nigeria Exploration and Production Co., or SNEPCo., will acquire 10% of Total’s 12.5% stake in Oil Mining Lease 118 for $408 million, with Agip taking the remaining 2.5% share for $102 million, the Nigerian Upstream Petroleum Regulatory Commission said in a statement late Thursday.
The NUPRC granted the approval based on documents that show the acquiring companies “have access to funding to meet their financial obligations,” it said.
The commission revoked a separate sale by Total earlier this month after finding the buyer, Chappal Energies, failed to raise the required funds.
Total’s divestment from Nigeria is part of a plan to curb debt. It targets about $3.5 billion in asset sales worldwide, from oil assets to stakes in renewable projects, Chief Executive Officer Patrick Pouyanne said earlier this year.
SNEPCo. is already the operator of OML with a 55% stake. Esso Exploration and Production Nigeria held 20% and Agip had a 12.5% share before completion of the sale.
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