Nigeria approved the sale by TotalEnergies SE of its interest in a block that holds the Bonga field to Shell Plc and Nigerian Agip Exploration in a deal towards the French major's asset restructurings and debt repayment plan.
Shell Nigeria Exploration and Production Company, or SNEPCo., will acquire 10% of Total's 12.5% stake in Oil Mining Lease 118 for $408 million, while the other 2.5% stake will be acquired by Agip for $102 million, in line with a late Thursday announcement by the Nigerian Upstream Petroleum Regulatory Commission.
The NUPRC approved the sale following news that the buyers "have access to finance to fulfill their financial obligations," it said. The commission canceled another sale by Total this month after it found the buyer, Chappal Energies, couldn't raise funds needed.
Total's sale of Nigeria is included in a debt-reduction plan. It plans to finish up to $3.5 billion of asset sales across the world, including oil stakes as well as interests in renewable businesses, Chief Executive Officer Patrick Pouyanne said in earlier this year.
SNEPCo. already produces OML with 55% interest. The 20% was owned by Esso Exploration and Production Nigeria and 12.5% was owned by Agip before completion of sale.