TotalEnergies EP Nigeria (TEPNG) has completed the sale of its oil joint venture worth $800 million to Vaaris in Nigeria. The deal was finalized on October 27, 2023, after nine months since its initial announcement on January 14, 2023.
Deal Details and Asset Structure
According to the structure established in January, TotalEnergies still fully retains its economic interests in OML 23, OML 28, and OML 77, three joint gas licenses of Renaissance. These licenses currently provide about half of the feed gas required for the Nigeria Liquefied Natural Gas (Nigeria LNG) project. Therefore, while TotalEnergies exits its coastal oil assets, it remains involved in this export project.
Nigeria's Role in TotalEnergies' Oil and Gas Production
Nigeria is recognized as one of the main sources of oil and gas production for TotalEnergies, with the company's production expected to reach 188,000 barrels of oil equivalent per day (boed) by 2025. TotalEnergies has been operating in Nigeria for over 60 years and employs more than 1,800 people in the country. The company also has a large offshore portfolio that is not affected by this transaction.
Overall, this deal represents a strategic shift in TotalEnergies' approach to the Nigerian market. By exiting its coastal oil assets, the company can focus on gas projects and other business opportunities. Additionally, this move may help reduce risks associated with oil price volatility and market changes.
Ultimately, with this sale, TotalEnergies continues to strengthen its position in the gas sector in Nigeria while seeking to create a better balance in its asset portfolio, all while continuing to meet global energy needs.
