TotalEnergies’ plan to divest its stake in a Nigerian oil producer has collapsed. The French major had agreed in July 2024 to sell its 10% interest in the Shell Petroleum Development Company of Nigeria (SPDC) to Mauritius-based Chappal Energies for $860 million. But according to Nigeria’s oil and gas regulator, the deal was cancelled after both parties failed to meet their financial obligations despite several extensions.
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In practice, Chappal was unable to raise the required $860 million, which in turn prevented TotalEnergies from paying regulatory fees and setting aside funds for environmental remediation and future liabilities.
The collapse of the deal is a setback for TotalEnergies’ strategy to offload mature, high-cost, and polluting assets in Nigeria and reduce its debt – which surged nearly 90% in one year to about $26 billion. It also leaves the company stuck with a troubled asset, plagued by recurring oil spills linked to theft, sabotage, and operational failures.
The contrast is stark as Shell, SPDC’s majority shareholder, successfully sold its 30% stake last March to a consortium of mostly local companies for $2.4 billion. Other majors such as ExxonMobil, Eni, and Equinor have also exited Nigerian onshore assets in recent years.
For TotalEnergies, the failed sale delays a broader divestment plan expected to generate $3.5 billion before the end of 2025 and improve its debt ratios. In the meantime, the company still holds 15 oil licences in Nigeria (producing around 14,000 barrels of oil equivalent per day in 2023) and three gas licences that provide 40% of supply to Nigeria LNG.
