Onome Amuge
TotalEnergies has agreed to sell its minority oil interests in Nigeria’s onshore joint venture formerly operated by Shell, marking another step by international energy groups to reduce exposure to legacy assets in the Niger Delta.
The French oil major said its Nigerian subsidiary, TotalEnergies EP Nigeria, has signed a sale and purchase agreement with Vaaris for the divestment of its 10 per cent non-operated stake in the Renaissance joint venture. The transaction covers the bulk of the former Shell Petroleum Development Company of Nigeria (SPDC) portfolio, which was restructured under new ownership and renamed Renaissance.
Renaissance is an unincorporated joint venture comprising Nigerian National Petroleum Corporation Ltd with a 55 per cent holding, Renaissance Africa Energy Company Ltd with 30 per cent and operatorship, TotalEnergies EP Nigeria with 10 per cent, and Agip Energy and Natural Resources Nigeria with the remaining 5 per cent. The venture holds interests in 18 oil and gas licences in the Niger Delta, long regarded as one of Nigeria’s most strategically important but operationally challenging hydrocarbon regions.
Under the agreement, TotalEnergies will sell to Vaaris its entire 10 per cent participating interest in 15 producing licences that are primarily oil-focused, together with all associated rights and obligations. These assets represented around 16,000 barrels of oil equivalent per day on a net basis to TotalEnergies in 2025.
In addition, the French group will transfer its 10 per cent participating interest in three gas-producing licences (OML 23, OML 28 and OML 77) to Vaaris. However, TotalEnergies will retain full economic interest in these gas assets, which are considered strategically significant as they currently account for roughly half of the gas supply feeding Nigeria LNG, one of Africa’s largest liquefied natural gas export projects.
The structure of the gas transaction reflects TotalEnergies’ continued focus on natural gas as a transition fuel, even as it exits non-operated onshore oil production. Completion of the transaction remains subject to customary conditions, including regulatory approvals from Nigerian authorities. No financial details were disclosed.
