TotalEnergies has signed an agreement to transfer 40% of its participating interest in the offshore OPL257 field in Nigeria to South Atlantic Petroleum Ltd. (SAPETRO). This agreement paves the way for an appraisal campaign in the Egina South field, which TotalEnergies intends to develop as a tie-in to the floating production, storage, and offloading (FPSO) unit Egina.
Details of the Agreement and Ownership Structure
Upon completion of this transaction, TotalEnergies will hold a 50% operating interest, SAPETRO will hold 40%, and Conoil will hold 10% in the OPL257 field. The OPL257 field is located approximately 150 kilometers (93 miles) off the coast of Nigeria and is adjacent to the PPL261 field. TotalEnergies and its partners in PPL261, including SAPETRO, discovered the Egina South field in 2005, and this field is situated in two blocks.
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Planning for the Appraisal Campaign
The appraisal campaign in the OPL257 section of the Egina South field will commence in the coming months. The aim of this campaign is to support the potential development of the Egina South field as a tie-in to the Egina FPSO, which is located about 30 kilometers (19 miles) away. Mike Sangster, Senior Vice President of Exploration and Production Africa at TotalEnergies, stated that the company is pleased to collaborate with SAPETRO in OPL257 as well as in the adjacent PPL261 field. He added, "Strengthening our long-term partnership paves the way for a swift appraisal campaign and subsequent development of Egina South, should it be successful."
He also emphasized, "For TotalEnergies, this approach aligns with our strategy to develop low-cost and low-emission resources by optimizing existing facilities."
Conditions and Final Steps of the Transaction
The completion of this transaction is subject to customary conditions, including legal approvals. TotalEnergies is working to optimize development processes and reduce costs by utilizing existing facilities and infrastructure. This approach enables TotalEnergies to achieve greater success in the competitive oil and gas market.
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