Total has completed the divestment of its 10 per cent interest in onshore Oil Mining Lease (OML) 17 to the Nigerian company TNOG Oil & Gas Limited, a related company of Heirs Holdings Limited and of Transnational Corporation of Nigeria Plc (Transcorp), for about $180 million.
Of that amount, about $150 million was paid at completion of the transaction, while the balance will be paid under an agreed deferred payment scheme.
The block produced around 2,500 barrels of oil equivalent per day in 2020 in Total group share.
“This transaction fits with our strategy of actively managing assets to continue improving our portfolio” said Jean-Pierre Sbraire, Chief Financial Officer at Total.
Total holds a 10 per cent interest in several onshore blocks in Nigeria operated by Shell Petroleum Development Company (SPDC, 30 per cent), a joint venture alongside the Nigerian National Petroleum Corporation (55 per cent) and Nigerian Agip Oil Company Limited (5.0 per cent).
Since 2010, Total has divested its interests in twelve onshore blocks to Nigerian companies, in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the sector.
Total has been present in Nigeria for over 60 years, where it today employs more than 1,600 people both in upstream and downstream activities.
The Group’s production in the country was 306,000 barrels of oil equivalent a day in 2019. Total operates 5 production licenses (OML) on the 33 leases in which the Group has interests.
In addition to OML 130 where the Akpo, Egina and Preowei fields were discovered, Total operates other offshore assets such as OML 99 where the Ikike discovery is located, OML 100 and OML 102 where the Ofon 2 project was completed in 2016. Onshore, Total is the operator of OML 58 under its joint venture with Nigerian National Petroleum Corporation (NNPC). The Group is also developing Liquefied Natural Gas (LNG) activities with a 15 per cent stake in the Nigeria LNG Ltd company, which currently operates 6 LNG liquefaction trains on Bonny Island.