Commission Approves TotalEnergies’ $510m Deal With Shell, Agip

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a Sales Purchase Agreement (SPA) by TotalEnergies Exploration and Production Nigeria Limited to delegate its full 12.5 per cent contractor involvement successful Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Production Company (SNEPco) and Nigerian Agip Exploration Limited (NAE).

According to the agreement’s details, TotalEnergies volition transportation 10 per cent of its involvement to SNEPco astatine a outgo of $408, 000,000, portion NAE volition wage $102,000,000 for the remaining 2.5 per cent.

The NUPRC said connected Thursday that pursuant to Section 95 of the Petroleum Industry Act 2021, the Commission carried retired owed diligence connected SNEPco to ascertain its fiscal capableness and method competence.

“SNEPco and NAE person demonstrated some method and managerial competence to optimally lend to the upstream operations (explore, make and produce) successful OML 118. They already support a participating involvement successful the asset.

“Based connected the presentations and documents submitted, determination is wide grounds that they person entree to backing to conscionable their fiscal obligations,” the Commission said.

The NUPRC further stated that TotalEnergies, a committed relation successful Nigeria’s vibrant upstream sector, had besides paid the statutory exertion interest for the deal.

The Commission noted that SNEPCO and NAE volition carnivore the decommissioning and abandonment liabilities owed by TotalEnergies to the Federal Government of Nigeria concerning the divested interest.

The upstream regulator explained that the divestment is taxable to a ministerial consent successful enactment Sections 95(1), (2), (7), (11) and 12 of the Petroleum Industry Act, 2021.

The Commission, therefore, expects SNEPco and NAE to wage 5 per cent and 2 per cent, respectively, of the transaction purse, totalling $510,000,000, arsenic a premium connected ministerial consent and processing fees.

The assignees are besides to springiness an undertaking successful favour of the Commission to carnivore each the decommissioning and abandonment liabilities and the big assemblage liabilities owed by TotalEnergies.