Nigeria’s upstream oil regulator has withdrawn its approval of TotalEnergies’ planned $860 million divestment to Chappal Energies, raising fresh uncertainty over one of the country’s largest energy deals in recent years.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed in a statement that the earlier greenlight granted for the sale of TotalEnergies’ stake in certain oil mining leases has been rescinded. The regulator cited “compliance concerns” as the basis for its reversal, though it did not provide further details.
TotalEnergies had announced in January 2024 that it would sell its 10% interest in several onshore assets to Chappal Energies as part of a wider strategy to exit mature fields in the Niger Delta. As stated by Chief Executive Patrick Pouyanné at the time, the company was “streamlining its portfolio to focus on deepwater projects and low-carbon investments.”
Industry observers noted that the regulator’s decision underscores heightened scrutiny of oil asset transfers under Nigeria’s Petroleum Industry Act. A Lagos-based energy lawyer told BusinessDay that “this reversal highlights the government’s determination to ensure that new operators demonstrate both financial and technical capacity.”
The setback comes as Nigeria works to attract fresh investment into its oil and gas industry, which has faced years of underinvestment and operational challenges. Reuters has highlighted that international oil majors have been divesting billions of dollars’ worth of onshore assets in the region, citing security and environmental risks.
