TotalEnergies has reached an agreement to sell its 10 per cent non-operated stake in Nigeria’s onshore oil joint venture, formerly operated by Shell Petroleum Development Company. The development forms part of ongoing changes in Nigeria’s oil and gas sector.
The stake is being acquired by Vaaris Energy after a previous transaction failed to secure regulatory approval. The deal also includes interests in three gas-producing licences linked to Nigeria LNG. TotalEnergies will retain its full economic interest in the gas assets, while the onshore oil sale remains subject to approval.
Read also: Experts call for clearer public education on Tax Reform Act
Changes in ownership structure
The Nigerian National Petroleum Company Limited holds 55 per cent of the joint venture, while Eni owns 5 per cent following Shell’s exit. Indigenous firms now control the remaining interests, increasing local participation in upstream operations.
Onshore oil assets have faced oil theft, pipeline damage and community disputes. These issues have affected production levels and operating costs.
Read also: Commercial paper issuances push Nigeria’s capital market to N753bn in seven months
Gas retained as strategic priority
Despite exiting onshore oil assets, TotalEnergies has retained its gas interests. Gas remains central to electricity generation, industrial activity and export revenue.
Government policy positions gas as a key driver of domestic energy supply. Nigeria LNG continues to support foreign exchange earnings.
Read also: Nigeria’s 10 Fastest-Growing SMEs of 2025
Regulatory focus and local participation
Regulators have stated that asset transfers must comply with local content and environmental requirements. Authorities are reviewing transactions to ensure financial and technical capacity.
The transaction reflects structural change in Nigeria’s oil and gas industry.
