Sopuruchi Onwuka

After cashing out its 12.5 non-operating stake in the Shell operated oil mining lease (OML) 118 for $510 million in September, TotalEnergies is working to increase its stake in Oil Prospecting Lease (OPL) 257 to 40 percent to 90 percent operating interest.

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TotalEnergies declared in a statement made available to Oracle Intelligence that it has entered a deal to take greater commercial stake and assume operatorship of OPL 257. The statement also addresses concerns that the French oil major might have initiated divestment programme in the deepwater with a walkout from Bonga.

TOTALEnergies announced on Wednesday that it is in agreements with Conoil Producing Limited (Conoil) to acquire 50% operated interest in OPL 257 and allow Conoil a reverse acquisition of 40% participating interest held by TOTALEnergies in Oil Mining Lease OML136.

Oracle Intelligence reports that both OPL 257 and OML 136 are closely located in deep offshore Nigeria.

With the terms of the asset swap and acquisition deal, TOTALEnergies’ would now increase its interest in OPL257 from 40% to 90%, leaving Conoil with the remaining 10% interest.

As usual, the farm-in deals are subject to regulatory approval, and the NUPRC executives told media representatives at a strategic workshop in the week that introduction of digital workflow systems, enhanced transparency and business enabling orientation in the agency means that approvals are smooth and seamless for transactions that come ready with all requirements.

Oracle Intelligence reports that acquisition of greater interest in OPL 257 becomes very necessary for smoother operation of both oil blocks which share straddled reserves and necessitates unitized development plan.

OPL 257 includes an oil discovery made in 2005 on PP261, a structure straddling the block, TotalEnergies stated.

With the new deal, TotalEnergies plans to drill an appraisal well in 2026 during its next drilling campaign, aiming for swift appraisal.

The proximity of the resources to Egina provides opportunity for resources to be tied back, leveraging existing FPSO, the French company stated.

This transaction reflects TotalEnergies’ strategy in Nigeria to focus on operated perimeters in gas and offshore oil and to accelerate development opportunities in Nigeria.

With the Ubeta FID in June 2024 and entry in PPL2000/2001 offshore exploration in August 2025, the company is strongly committed to its strategy of continuous investments in Nigeria and to growing production.

The Akpo West start-up in February 2024, Ubeta FID in June 2024, entry into PPL 2000/2001 deepwater exploration in Aug 2025 and this increase of stakes on OPL257 highlight TotalEnergies commitment to the country and support to Nigeria’s national objective to attract investments and grow production.