TotalEnergies has announced the signing of a major asset swap agreement with Nigerian independent oil producer Conoil Producing Limited, involving participating interests in two offshore blocks.
Under the terms of the deal, TotalEnergies will acquire a 50 per cent operated stake in Oil Prospecting Licence (OPL) 257 from Conoil. In exchange, Conoil will take over TotalEnergies’ 40 per cent interest in Oil Mining Lease (OML) 136.
In a statement issued on Wednesday, the French energy giant said the transaction will significantly deepen its position in the development of offshore resources in Nigeria. Following the swap, TotalEnergies’ holding in OPL 257 will rise from 40 per cent to 90 per cent, while Conoil retains a 10 per cent stake.
OPL 257 covers about 370 square kilometres and lies roughly 150 kilometres off the Nigerian coastline. The block is located next to PPL 261, where TotalEnergies and partners discovered the Egina South field in 2005. The find is expected to extend into OPL 257, with an appraisal well planned for 2026.
According to the company, Egina South is being considered for development as a tie-back to the Egina Floating Production Storage and Offloading (FPSO) facility, situated approximately 30 kilometres away. This approach is expected to reduce development costs and accelerate production timelines.
TotalEnergies’ Senior Vice-President for Africa, Exploration & Production, Mike Sangster, described the deal as a natural extension of the company’s longstanding partnership with Conoil.
He stated:
“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO. This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria.”
TotalEnergies confirmed that the completion of the deal is subject to standard regulatory approvals and closing conditions.
