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TotalEnergies has restructured its Nigerian offshore portfolio in a major strategic move, consolidating control of a deepwater block while divesting non-core assets to an indigenous energy company. The French energy giant signed an asset swap agreement with Conoil Producing Limited that reshapes both companies’ positions in Nigeria’s lucrative oil and gas sector.
What Happened
TotalEnergies agreed to acquire a 50% operated interest in block OPL257 from Conoil, increasing its total stake from 40% to 90%. In return, Conoil takes over TotalEnergies’ 40% participating interest in block OML136. Both blocks are located offshore Nigeria.
Following the completion of this transaction, TotalEnergies will hold operational control of OPL257 with a commanding 90% stake, while Conoil retains a 10% interest. The deal marks a significant consolidation of TotalEnergies’ deepwater presence in the West African nation.
Why It Matters
The real strategic value lies in what OPL257 contains. The block, covering approximately 370 square kilometers and situated 150 kilometers offshore Nigeria, is adjacent to PPL261—where TotalEnergies and its partners discovered the Egina South field back in 2005. The Egina South reservoir extends into OPL257, making unified ownership critical for efficient development.
By consolidating the block, TotalEnergies positions itself to develop Egina South as a tie-back to its existing Egina FPSO facility located about 30 kilometers away. This approach significantly reduces capital expenditure and accelerates project timelines by leveraging existing infrastructure rather than building from scratch.
For TotalEnergies, Nigeria remains a cornerstone of its global production profile, contributing 209,000 barrels of oil equivalent per day in 2024. The company has operated in the country for over 60 years and employs more than 1,800 people across multiple business segments.
Key Details
An appraisal well for the Egina South discovery is planned for 2026 on the OPL257 side, setting the stage for future production decisions. The transaction aligns with TotalEnergies’ broader strategy of focusing on low-cost, low-carbon advantaged barrels and streamlining its portfolio toward core assets.
For Conoil, acquiring the 40% stake in OML136 represents continued expansion of indigenous capacity in Nigeria’s upstream sector at a time when international majors are increasingly consolidating their deepwater portfolios.
What Comes Next
The deal’s completion remains subject to customary regulatory approvals from Nigerian authorities. Once finalized, the transaction will give TotalEnergies the operational flexibility needed to move forward with Egina South appraisal and potential development, capitalizing on existing production infrastructure while maintaining a strategic partnership with the indigenous operator.
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