The $860 million deal for TotalEnergies to sell its 10% stake in the SPDC joint venture to Chappal Energies Mauritius-based company collapsed because both parties failed to meet the required financial obligations and deadlines set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
This setback delays the French energy giant’s strategy to divest from mature, high-cost onshore assets in Nigeria and is a blow to its broader plan to generate billions of dollars from asset sales to reduce debt. The company will now have to decide whether to renegotiate the deal with Chappal Energies or seek a new buyer for its onshore assets.
NUPRC had initially granted its approval but rescinded it after repeated extensions because the conditions were not met.
Specifically, Chappal Energies was unable to raise the $860 million needed to complete the acquisition. As a result, TotalEnergies could not fulfill its own financial obligations, which included paying regulatory fees and providing funds for environmental rehabilitation and future liabilities associated with the onshore assets.
TotalEnergies is still saddled with its stake in the joint venture, which has been plagued by operational challenges like oil spills, theft, and pipeline sabotage. The company’s plan to exit these high-cost assets and use the proceeds to reduce debt has been delayed.
The divestment of TotalEnergies from its onshore assets in Nigeria is part of a larger trend among international oil companies.
These companies are shifting their focus to cleaner energy sources and are under pressure from investors to reduce their carbon footprint.
In late 2024, ExxonMobil’s sale of its shallow-water assets to Seplat Energy was completed after a two-year delay.
Similarly, in March 2025, Shell completed the sale of its 30% stake in the SPDC joint venture to a consortium of mostly Nigerian firms. This was a major deal valued at up to $2.4 billion.
