TotalEnergies Seeks Buyers for Minority Stake in Nigerian Onshore Oil Venture Amid Environmental Concerns

French energy company TotalEnergies is currently looking for interested buyers for its minority stake in a significant onshore oil joint venture in Nigeria, following the recent divestment by Shell. TotalEnergies’ CEO, CEO Patrick Pouyanne said.

The Shell Petroleum Development Company of Nigeria Limited (SPDC), in which TotalEnergies has a 10% stake, has faced numerous challenges with onshore oil spills due to theft, sabotage, and operational problems. These issues have resulted in expensive repairs and notable legal disputes over the years.

“We want to divest our share of SPDC, and we are looking to reshape the portfolio,” Pouyanne said at TotalEnergies’ annual results presentation on Wednesday.

“Fundamentally it’s because producing this oil in the Niger delta is not in line with our [Health, Security and Environmental] policies, it’s a real difficulty.”

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According to its website, SPDC manages a system of pipelines, 263 oil wells, 56 gas wells, six gas plants, two oil export terminals, and a power plant.

TotalEnergies has joined the group of international oil companies that are currently considering exiting Nigeria’s onshore sector, where they have been operating for several decades.

However, despite the fact that the French group was able to produce a total of 219,000 barrels of oil equivalent per day in Nigeria in 2023, it still maintains a significant presence as an operator of offshore fields in the West African country. Just recently, the group made an announcement about the commencement of operations at the Akpo West oilfield, which is situated 135 kilometers away from the coastline.