The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stopped TotalEnergies’ $860 million sale of a 10% stake in the Shell Petroleum Development Company (SPDC) joint venture to Chappal Energies. This decision disrupts TotalEnergies’ plan to sell older, high-cost assets to reduce its $25.9 billion debt, which grew 89% by July 2025.
Deal Details and Challenges TotalEnergies aimed to sell its 10% stake in SPDC, which includes oil and gas licenses. The Nigerian National Petroleum Corporation (NNPC) owns 55%, Shell holds 30%, and Eni has 5%. The deal, valued at $860 million, would have allowed Chappal Energies, a Mauritius-based firm, to take on TotalEnergies’ rights and duties in these assets. However, NUPRC withdrew its July 2025 approval because both companies missed key financial and regulatory deadlines, even after extensions.
Eniola Akinkuotu, NUPRC’s spokesperson, said the companies failed to meet financial commitments, including regulatory fees and environmental cleanup funds. A source noted Chappal struggled to raise the $860 million, and TotalEnergies did not cover required costs. This leaves the deal uncertain, impacting both firms.
Strategic Goals and Setbacks TotalEnergies wanted to exit Nigeria’s onshore oil sector, troubled by theft, vandalism, and spills, to focus on offshore and gas projects, like Nigeria LNG. The SPDC stake includes 15 oil licenses producing 14,000 barrels daily in 2023 and three gas licenses tied to 40% of TotalEnergies’ Nigeria LNG supply. Keeping these assets hinders TotalEnergies’ goal to lower its 28% debt-to-equity ratio. In July 2025, CEO Patrick Pouyanne told investors this sale was part of a $3.5 billion divestment plan.
Chappal Energies, experienced with Niger Delta assets, aimed to grow its role in Nigeria’s oil sector. It bought Equinor’s assets for $1.2 billion in 2024, backed by Mauritius Commercial Bank and Trafigura. However, its financial backers for this deal remain undisclosed.
Nigeria’s Shifting Oil Landscape Nigeria’s oil industry is changing. Shell sold its 30% SPDC stake for $2.4 billion in March 2025. ExxonMobil, Eni, and Equinor also sold Nigerian assets to focus on newer projects. The stalled TotalEnergies deal shows the challenges of navigating Nigeria’s rules, especially for high-value deals involving environmental and community issues.
What’s Next? The failed sale leaves TotalEnergies stuck with costly, polluting assets and delays its debt reduction. Chappal Energies’ expansion plans are also on hold. Both await NUPRC’s next steps, making this a key case in Nigeria’s oil sector.
