TotalEnergies sells 40% of Nigerian offshore block
By the AFREEQUE newsroom, based on Business Day Nigeria
TotalEnergies has agreed to sell 40% of Nigeria’s offshore OPL257 block to South Atlantic Petroleum, while retaining 50% and operatorship. The agreement will allow the Nigerian side of the Egina South field to be evaluated in the coming months before a possible connection to the Egina floating unit, according to Business Day Nigeria.
TotalEnergies has signed an agreement to sell a 40% stake in Nigeria’s OPL257 offshore oil block to South Atlantic Petroleum Ltd. (SAPETRO), paving the way for an evaluation campaign at the Egina South field, the French group said in a statement reported by Business Day Nigeria. Once the transaction is completed, TotalEnergies will retain a 50% stake in the block and its role as operator, while Conoil will hold the remaining 10%. The value of the transaction was not disclosed.
Located about 150 kilometres off the Nigerian coast, OPL257 adjoins block PPL261, in which TotalEnergies holds 24% with its partners, including SAPETRO. The Egina South discovery extends across both blocks and still needs to be evaluated on the OPL257 side to determine the field’s recoverable size and economic viability.
Evaluation work is scheduled for the coming months. If the results are favourable, the partners plan to link Egina South to the Egina floating production, storage and offloading vessel, located about 30 kilometres away. This would allow them to use existing infrastructure rather than build a standalone facility, according to Mike Sangster, TotalEnergies’ vice-president for exploration and production in Africa.
Completion of the sale remains subject to customary conditions, including regulatory approvals. TotalEnergies presents the transaction as a way of reducing its exposure to a resource that remains uncertain while retaining a majority stake and operatorship of the block.
