By Mohammed Bello Doka
In a strategic move aimed at reshaping its portfolio, TotalEnergies has announced its intention to sell its minority stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC), a significant player in the Nigerian onshore oil sector.
During the presentation of the company's financial results, CEO Patrick Pouyanne unveiled plans to exit the venture, citing challenges in oil production in the Niger Delta that conflict with the company's Health, Security, and Environmental (HSE) policies.
TotalEnergies, holding a 10% interest in SPDC, expressed a commitment to restructuring its assets, emphasizing the difficulty of sustaining operations in the Niger Delta region.
However, the company affirmed its continued focus on Nigerian gas assets, recognizing their importance for expansion in liquefied natural gas (LNG) development in the foreseeable future.
This decision comes in the wake of Shell's recent announcement to divest its 30% stake in SPDC to Renaissance, a consortium of Nigerian-based companies and an international energy group, for a reported sum of up to $2.4 billion earlier this year.
The SPDC joint venture comprises Shell Petroleum Development Company Limited (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
TotalEnergies' move signals a strategic shift in its Nigerian operations, with a focus on aligning its portfolio with evolving industry dynamics and sustainability goals.
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