• Regulator withdraws approval for sale of 10% SPDC stake to Chappal Energies

• Deal worth $860 million collapsed over unmet financial obligations

• TotalEnergies remains exposed to onshore assets it aimed to sell

Nigeria’s upstream regulator (NUPRC) has withdrawn its approval for TotalEnergies to sell its 10% stake in the Shell Petroleum Development Company of Nigeria (SPDC) joint venture to Chappal Energies. The $860 million deal, announced in July 2024, was blocked on September 23 after both parties failed to meet required financial obligations despite several extensions.

The agreement covered TotalEnergies’ interests in 15 oil leases producing about 14,000 barrels of oil equivalent per day and three gas licenses. But Chappal was unable to raise the necessary funds, preventing TotalEnergies from paying regulatory fees and setting aside provisions for environmental liabilities.

The setback comes as TotalEnergies seeks to divest from its onshore Nigerian portfolio, which has been plagued by theft, leaks, legal disputes, and a high carbon footprint. The sale was also part of the company’s broader deleveraging plan, with net debt rising 89% year-on-year to $25.9 billion in July.

CEO Patrick Pouyanné had said the Nigerian sale was among three planned transactions expected to generate $3.5 billion by the end of 2025. The collapse of the deal leaves the French major holding onshore assets it hoped to exit in favor of more profitable offshore and gas projects. TotalEnergies remains a partner in SPDC alongside NNPC (55%) and Eni.

It is not yet clear whether the company will revive talks with Chappal or seek another buyer, as rivals ExxonMobil, Eni, and Equinor have already managed to divest their Nigerian onshore holdings.