The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its approval for TotalEnergies EP Nigeria Limited’s $860 million asset sale to Chappal Energies, a Mauritius-based oil and gas exploration company.
Eniola Akinkuotu, spokesperson for the NUPRC, confirmed the development to TheCable on Tuesday, citing Chappal Energies’ inability to meet agreed financial obligations.
“The NUPRC conveyed the withdrawal of ministerial consent to both parties after Chappal Energies failed to meet its financial commitment. This was after a series of extensions had lapsed,” Akinkuotu said.
On July 18, 2024, Chappal Energies announced it had reached an agreement to acquire TotalEnergies’ stake in the Shell Petroleum Development Company (SPDC) joint venture for $860 million.
“The acquisition includes a 10% interest in 15 Oil Mining Leases (OMLs) and two main export terminals in Nigeria, specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint Venture (SPDC JV),” the company had stated.
Chappal later disclosed that it intended to bring in new investors once the deal was finalised.
Meanwhile, on May 29, TotalEnergies announced a separate agreement to sell its 12.5 percent interest in Oil Mining Lease (OML) 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million.