The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its earlier approval for French oil giant TotalEnergies to divest its minority stake in Shell Petroleum Development Company of Nigeria Limited (SPDC).
The decision marks a major setback to TotalEnergies’ plan to offload aging onshore assets and reduce debt. It also highlights the challenges international oil companies continue to face in their divestment drive from Nigeria’s Niger Delta, a region plagued by security risks, environmental issues, and mounting financial concerns.
TotalEnergies had announced in July 2024 that it reached an agreement to sell its 10 per cent stake in SPDC to Mauritius-based Chappal Energies. In October 2024, the NUPRC granted ministerial consent for the deal but tied it to strict financial obligations.
However, the transaction collapsed after both parties failed to meet the financial commitments despite several deadline extensions.
“The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines. However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal,” NUPRC spokesperson Eniola Akinkuoto confirmed.
This development adds another twist to the wave of divestments by international oil companies seeking to exit Nigeria’s onshore operations.
