TotalEnergies has announced its intention to divest its minority share in the prominent Nigerian onshore oil joint venture, Shell Petroleum Development Company of Nigeria Limited (SPDC). CEO Patrick Pouyanne revealed this decision while presenting the company’s financial results.
Pouyanne cited discrepancies with the energy giant’s health, security, and environmental policies as the primary reason for discontinuing oil production in the Niger Delta.
The Shell Petroleum Development Company of Nigeria Limited, in which TotalEnergies holds a 10% stake, has faced challenges with numerous onshore oil spills due to theft, sabotage, and operational issues, resulting in substantial repairs and notable legal battles over the years.
Pouyanne emphasized the company’s commitment to divest its share in SPDC as part of a broader portfolio reshaping initiative.
SPDC, operating a network comprising pipelines, 263 oil wells, 56 gas wells, six gas plants, two oil export terminals, and a power plant, has been a focal point of TotalEnergies’ onshore operations. Despite the divestment from the onshore sector, TotalEnergies remains a significant player in Nigeria’s offshore fields, having produced 219,000 barrels of oil equivalent per day in 2023.
TotalEnergies joins other international oil companies in withdrawing from Nigeria’s onshore sector. Notably, Shell recently agreed to sell its 30% stake in SPDC to a consortium of mostly local companies for up to $2.4 billion.
The joint venture includes the Nigerian National Petroleum Corporation (NNPC) with a 55% stake and Italy’s Eni with 5%.
While Exxon Mobil, Eni, and Equinor have previously divested assets in Nigeria, Pouyanne clarified that TotalEnergies intends to retain its Nigerian gas resources, crucial for the planned expansion of liquefied natural gas development in the coming years.
Any sale of its stake in SPDC would necessitate approval from the Nigerian government.
