Friday, 09 February 2024 04:32

TotalEnergies to exit Nigerian onshore oil, after Shell, Eni, others did same

Rate this item
(0 votes)

French energy giant TotalEnergies is seeking to sell its minority share in a major Nigerian onshore oil joint venture, following Shell's divestment last month, CEO Patrick Pouyanne said.

Shell Petroleum Development Company of Nigeria Limited (SPDC), in which TotalEnergies holds a 10% stake, has struggled with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits 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."

SPDC operates a network of pipelines, 263 oil wells, 56 gas wells, six gas plants, two oil export terminals and a power plant, according to its website.

Advertisement · Scroll to continue

TotalEnergies is the latest international oil company seeking to withdraw from Nigeria's onshore sector after decades of operations. But the French group, which produced a total of 219,000 barrels of oil equivalent per day in 2023 in Nigeria, remains a major operator of offshore fields in the West African country. Earlier this week it announced the start-up of the Akpo West oilfield located 135 kilometres off the coast.

Shell last month announced it had agreed to sell its 30% stake in SPDC to a consortium of five mostly local companies for up to $2.4 billion.

Other partners in the joint venture are the state's Nigerian National Petroleum Corporation (NNPC), which holds 55% and Italy's Eni with 5%.

Exxon Mobil, Eni and Norway's Equinor have all sold assets in Nigeria in recent years to focus on newer, more profitable operations elsewhere.

Pouyanne said TotalEnergies would keep its Nigerian gas resources, which he described as crucial for the company's planned expansion of liquefied natural gas development in coming years.

Any sale would require Nigerian government approval.

 

Reuters

September 16, 2024

I started my business with $1,000; now worth billions, serves over 163m people. These 7…

Key Takeaways Dream big and don't try to please everyone. You can chart your own…
September 16, 2024

Trump survives another assassination attempt, suspect arrested

Republican presidential candidate Donald Trump was safe on Sunday after the Secret Service foiled what…
September 14, 2024

Ancient wall carvings suggest women used 'modern' accessory 12,000 years ago

Researchers have discovered ancient wall carvings depicting what appeared to be handbags designed with a…
September 15, 2024

Former RAF engineer, 86, and his nurse wife, 80, to use suicide pod. This is…

Peter and Christine Scott, who have been married for 46 years, made the decision after…
September 16, 2024

Nearly 300 prisoners escape Maiduguri prison after floods

Devastating floods collapsed walls at a jail in Maiduguri in northeastern Nigeria early last week,…
September 16, 2024

Here’s the latest as Israel-Hamas war enters Day 346

Houthi missile reaches central Israel for first time Prime Minister Benjamin Netanyahu said Israel would…
August 28, 2024

New study says China uses 80% artificial sand. Here’s why that’s a big deal

The world is running out of sand. About 50 billion tons of sand and gravel…
August 31, 2024

3 days after NFF’s announcement, Labbadia rejects offer to coach Super Eagles

Bruno Labbadia has rejected his appointment as the new head coach of Super Eagles of…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.