Total's Divestments in 3 Onshore Blocks in Nigeria Reaches $1B

Total's recent divestment of its interests in three onshore Oil Mining Leases (OML) in Nigeria, inlcuding OML 18 and OML 24, crossed $1 billion Monday after the French major completed the sale of its stake in OML 29 to local firm Aiteo Eastern E&P for $569 million. 

“The sale of these non-operated onshore blocks in Nigeria is yet another example of our strategy of dynamic portfolio management, achieved at attractive valuations,” Total's chief financial officer Patrick de La Chevardiere said in a press release. “These transactions also reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments, such as the Egina project.” Total has divested its interests in 11 onshore blocks to Nigerian companies since 2010 in accordance with the Nigerian government’s objective of developing Nigerian companies in the sector.    

Total has a 10 percent stake in several onshore blocks in Nigeria via the Shell Petroleum Development Company (SPDC) Joint Venture alongside the Nigerian National Petroleum Corporation (55 percent), SPDC (30 percent, operator) and Nigerian Agip Oil Company Limited (5 percent).

Shell Completes $1.7B Sale of Nigerian Assets

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), has completed the assignment of its interest in oil mining lease (OML) 29 and the Nembe Creek Trunk Line (OML29 and NCTL) and related facilities in the Eastern Niger Delta. Its interests in OML29 and the Nembe Creek Trunk Line were assigned to Aiteo Eastern E&P Company Limited. Total cash proceeds for Shell amount to some $1.7 billion. This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.