French energy conglomerate TotalEnergies has announced its intention to divest its minority stake in a prominent Nigerian onshore oil joint venture.
The decision follows Shell’s recent divestment from similar ventures in the area.
TotalEnergies, which holds a 10% interest in the Shell Petroleum Development Company of Nigeria Limited (SPDC), cited the venture’s operational challenges, including recurrent oil spills due to theft, sabotage, and operational mishaps.
CEO Patrick Pouyanne emphasized that the extraction of oil in the Niger Delta conflicted with the company’s Health, Security, and Environmental (HSE) policies, presenting significant difficulties.
The SPDC operates an extensive network of infrastructure, including pipelines, oil and gas wells, export terminals, and power plants, highlighting the scale of TotalEnergies’ involvement in Nigeria’s oil sector.
This move aligns with a broader trend of international oil companies reevaluating their presence in Nigeria’s onshore operations due to environmental and operational concerns.
TotalEnergies, however, remains committed to its offshore endeavors in Nigeria, recently announcing the commencement of operations at the Akpo West oilfield.
Shell’s recent sale of its 30% stake in the SPDC to a consortium of predominantly local firms for up to $2.4 billion underscores the shifting dynamics within Nigeria’s oil industry.
Other partners in the joint venture include the Nigerian National Petroleum Corporation (NNPC) and Italy’s Eni.
TotalEnergies’ decision to divest its onshore assets emphasizes the growing importance of environmental and social considerations in the energy sector and signals a strategic shift in its portfolio management.
Any potential sale will be subject to approval by the Nigerian government.