The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its earlier approval for TotalEnergies to sell its 10% stake in the Shell Petroleum Development Company (SPDC) joint venture to Chappal Energies, a Mauritius-based firm.
This decision disrupts TotalEnergies’ strategy to divest its onshore assets and reduce debt.
In October 2024, NUPRC had conditionally approved the $860 million transaction, but on September 23, 2025, spokesperson Eniola Akinkuoto announced the withdrawal, citing the failure of both parties to meet financial obligations. Akinkuoto stated, “The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines. However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal.”
Neither TotalEnergies nor Chappal Energies has issued an official statement, with both declining to comment. An industry insider familiar with the matter revealed that Chappal Energies struggled to secure the $860 million, and TotalEnergies failed to meet regulatory fee requirements and cover environmental rehabilitation and liability costs.
The failed deal leaves TotalEnergies with its stake in SPDC, which has faced challenges from oil spills caused by theft, sabotage, and operational issues, leading to costly repairs. SPDC’s ownership includes the Nigerian National Petroleum Company (NNPC) Limited (55%) and Eni (5%). TotalEnergies’ 10% stake covers 15 oil-producing licenses, yielding about 14,000 barrels of oil-equivalent per day in 2023, and three gas licenses contributing 40% of its Nigeria LNG supply.
In July 2024, TotalEnergies’ Nigerian subsidiary signed a sale and purchase agreement with Chappal Energies for the $860 million deal, subject to regulatory approvals. The collapse of this transaction hinders TotalEnergies’ efforts to offload high-cost, environmentally challenging assets and reduce its debt, which surged 89% to $25.9 billion by July 2025. CEO Patrick Pouyanne had previously indicated that this sale, along with two others, would generate $3.5 billion to lower the company’s 28% debt-to-equity ratio.
In a related development, Shell completed the sale of its 30% SPDC stake to Renaissance Africa Energy Company for $2.4 billion in March 2025. The consortium includes Nigerian firms ND Western, Aradel Holdings, First E&P, Waltersmith, and the international Petrolin Group. Additionally, Seplat Energy finalised its $1.28 billion acquisition of ExxonMobil’s shallow-water assets in Nigeria on December 12, 2024, marking a significant milestone after regulatory delays.
