TotalEnergies’ attempt to sell its minority stake in a Nigerian onshore oil venture has collapsed, Nigerian regulators confirmed on Tuesday.
The French energy giant had agreed in July 2024 to sell its 10% stake in Shell Petroleum Development Company (SPDC) to Mauritius-based Chappal Energies.
Regulatory approval was initially granted last October, but authorities revoked it after both companies failed to meet strict financial obligations.
“The ministerial consent came with financial commitments to the Nigerian people, yet deadlines lapsed despite repeated extensions,” said regulatory spokesman Eniola Akinkuoto.
One source revealed Chappal struggled to raise $860 million, while Total failed to cover regulatory fees and environmental rehabilitation costs.
Neither Chappal Energies nor TotalEnergies provided comment on the cancellation, which now complicates Total’s efforts to reduce debt and shed polluting assets.
SPDC has long been plagued by oil spills caused by sabotage, theft, and ageing infrastructure, prompting lawsuits and expensive repairs.
Earlier this year, Shell successfully divested its 30% stake in SPDC, securing up to $2.4 billion from a local consortium.
Other majors, including Exxon Mobil, Eni, and Equinor, have also retreated from Nigerian assets to pursue more profitable ventures elsewhere.
Chappal, known for acquiring distressed Niger Delta operations, previously secured $1.2 billion to purchase Equinor’s Nigerian holdings with backing from Trafigura and Mauritius Commercial Bank.
But Chappal has remained silent on its financial backers for the abandoned Total deal, raising questions about its long-term strategy.
SPDC’s other shareholders include the Nigerian National Petroleum Corporation, with a 55% stake, and Eni, which holds 5%.
TotalEnergies had hoped the deal would contribute to $3.5 billion in planned sales this year, easing debt that soared to $25.9 billion.
Instead, the collapse leaves Total tied to 15 oil-producing licences and three gas fields supplying 40% of Nigeria’s LNG output.