In a pivotal move, TotalEnergies unveils plans to divest its minority stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC), a significant onshore oil joint venture. Patrick Pouyanne, the CEO of TotalEnergies, announced this strategic decision during the company’s financial results presentation.
TotalEnergies, currently holding a 10% interest in SPDC, aims to restructure its portfolio due to the increasing challenges associated with oil production in the Niger Delta. Pouyanne highlighted the company’s commitment to aligning with Health, Security, and Environmental (HSE) policies, stating that the difficulties faced in the Niger Delta necessitate this strategic shift.
Crucially, the company emphasizes that while divesting its share in SPDC, it will retain its Nigerian gas assets. These assets are deemed essential for TotalEnergies’ expansion in liquefied natural gas (LNG) development over the coming years.
“We want to divest our share of SPDC, and we are looking to reshape the portfolio. Fundamentally, it’s because producing this oil in the Niger Delta is not in line with our [HSE] policies; it’s a real difficulty,” noted the company.
This development follows Shell’s earlier announcement in January, revealing plans to sell its 30% stake in SPDC to Renaissance, a consortium comprising five Nigerian companies and an international energy group, for up to $2.4 billion.
To provide context, the SPDC joint venture consists of SPDC Ltd (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
TotalEnergies’ strategic shift reflects a calculated move to navigate challenges while aligning with sustainability goals, setting the stage for continued growth in Nigeria’s dynamic oil and gas sector. Stay tuned for updates on this transformative journey.
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