NUPRC Withdraws Approval for TotalEnergies' $860M Nigeria Asset Sale

TotalEnergies’ planned sale of its 10% stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Mauritius-based Chappal Energies for about $860 million has collapsed after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) withdrew its earlier approval. The approval was rescinded because both parties failed to meet key financial obligations tied to the deal despite multiple deadline extensions, including Chappal's inability to raise the required funds and TotalEnergies' failure to cover regulatory fees and environmental remediation costs. This failed transaction represents a setback for TotalEnergies’ strategy to divest mature, polluting onshore assets and reduce debt, leaving it still exposed to the operational and environmental challenges plaguing SPDC, such as oil spills and sabotage. The collapse of the deal highlights ongoing difficulties faced by international oil companies in exiting high-cost Nigerian onshore operations and managing environmental liabilities. This development follows a broader trend of divestments in Nigeria's oil sector, with other major companies like Shell, ExxonMobil, Eni, and Equinor also selling off Nigerian assets to focus on more profitable ventures. The NUPRC’s decision underscores the regulatory and financial hurdles involved in these transactions, impacting the future of upstream operations in Nigeria's Niger Delta.