TotalEnergies has divested its 10 per cent stake in a collection of Nigerian oil and gas production licenses to Mauritius-based Chappal Energies for $ 860 million, the French energy company announced.

The 18 licenses are part of an unincorporated joint venture with Shell Petroleum Development Company of Nigeria (holding 30 per cent), the Nigerian National Petroleum Corporation (holding 55 per cent), and Nigerian Agip Oil Company (holding 5 per cent).

Chappal Energies specialises in investments in high-value and distressed brownfield upstream assets in the Niger Delta region.

TotalEnergies indicated that 15 of the licenses primarily produce oil, with Total's share amounting to 14,000 barrels of oil-equivalent per day in 2023.

The remaining three licenses, which produce natural gas, currently supply 40 per cent of TotalEnergies' LNG gas from Nigeria. The company mentioned that despite selling the participation stake to Chappal, it would retain full economic interest.

Nicolas Terraz, president of exploration and production at TotalEnergies, stated that the divestment allows the company to concentrate its onshore Nigerian presence exclusively on the integrated gas value chain, ensuring the continuity of feed gas supply to Nigeria LNG in the future.

The transaction is anticipated to be completed by the end of the year, pending regulatory approvals.