The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has withdrawn the approval for TotalEnergies EP Nigeria Limited’s $860 million asset sale to Chappal Energies, a Mauritius-based oil and gas exploration company.
Speaking to TheCable on Tuesday, Eniola Akinkuotu, NUPRC’s spokesperson, said the withdrawal was based on Chappal Energies’ failure to meet its financial commitments.
“The NUPRC conveyed the withdrawal of ministerial consent to both parties after Chappal Energies failed to meet its financial commitment. This was after a series of extensions had lapsed,” he said.
On July 18, 2024, Chappal Energies said it had agreed to purchase TotalEnergies EP Nigeria Limited’s stake in Shell Petroleum Development Company (SPDC) joint venture (JV) for $860 million.
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“The acquisition includes a 10% interest in 15 Oil Mining Leases (OMLs) and two main export terminals in Nigeria specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint Venture (SPDC JV),” Chappal had said.
Subsequently, Chappal Energies later disclosed plans to bring on new investors once it completes the purchase of the French oil firm’s assets.
On May 29, TotalEnergies announced a deal to sell its 12.5 percent interest in the oil mining lease (OML) 118 production sharing contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $ 510 million.
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