The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked approval for TotalEnergies’ planned sale of its 10% stake in Shell Petroleum Development Company (SPDC) to Chappal Energies, a deal worth about $860 million.
The French oil giant had intended to divest from onshore operations in Nigeria — plagued by theft, vandalism, and community disputes — to focus on offshore and gas projects, including Nigeria LNG. Chappal Energies, based in Mauritius, was expected to assume both the rights and obligations of Total’s holdings, marking its expansion into Nigeria’s upstream sector.
However, the regulator announced that both parties failed to meet mandatory financial and regulatory conditions within the stipulated timeframe. NUPRC spokesperson Eniola Akinkuotu confirmed that ministerial consent had included strict financial obligations to the Nigerian people, but repeated extensions were missed, forcing the commission to cancel the deal.
Industry sources disclosed that Chappal Energies struggled to raise the $860 million, while Total did not pay required regulatory fees or fund environmental liabilities. The setback leaves TotalEnergies stuck with mature assets in SPDC, which have been hampered by oil spills, theft, and costly repairs.
Shell had earlier completed the sale of its 30% SPDC stake to a consortium of mostly local companies for $2.4 billion, while other majors such as ExxonMobil, Eni, and Equinor have also divested Nigerian assets in recent years.
Chappal, which last year successfully acquired Equinor’s Nigerian assets for $1.2 billion with backing from Mauritius Commercial Bank and Trafigura, has not revealed its financial backers for the aborted SPDC purchase.
TotalEnergies’ inability to exit marks a setback for Chief Executive Patrick Pouyanne’s pledge to raise $3.5 billion from divestments to reduce debt, which stood at $25.9 billion by mid-year. The company still holds stakes in 15 oil-producing licences and three gas licences supplying 40% of Nigeria LNG’s feedstock.
