Chappal Energies to acquire SPDC JV interest in Nigeria from TotalEnergies

Chappal Energies Mauritius Ltd. has agreed to acquire from TotalEnergies EP Nigeria its 10% interest in SPDC joint venture licenses in Nigeria for $860 million.

SPDC JV is an unincorporated joint venture between Nigerian National Petroleum Corp. Ltd. (55%), Shell Petroleum Development Co. of Nigeria (30%, operator), TotalEnergies EP Nigeria (10%), and NAOC (5%), which holds 18 licenses in the Niger Delta.

Under the signed agreement, the TotalEnergies subsidiary will sell to Chappal its 10% participating interest and all its rights and obligations in 15 licenses of SPDC JV, which produce mainly oil, TotalEnergies said in a release July 17. Production from these licenses represented about 14,000 boe/d for TotalEnergies’ share in 2023.

TotalEnergies EP Nigeria will also transfer to Chappal Energies its 10% participating interest in the three other licenses of SPDC JV which are producing mainly gas (OML 23, OML 28, and OML 77), while retaining full economic interest in these licenses which currently account for 40% of Nigeria LNG gas supply, the company said.

Closing is subject to customary conditions, including regulatory approvals.