Mohammed Shosanya
Chappal Energies, has entered into a Sale and Purchase Agreement (SPA) to acquire TotalEnergies EP Nigeria Limited’s 10% non-operated interest in its onshore and shallow water assets within the SPDC JV in the Niger Delta.
According to a statement,yhe transaction is expected to close by December 31, 2024.
The acquisition,the statement said, includes a 10% interest in 15 Oil Mining Leases (OMLs) and two main export terminals in Nigeria specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint Venture (SPDC JV).
The Nigerian National Petroleum Company Limited (NNPCL) holds a 55% stake, SPDC operates with a 30% stake, and Nigerian Agip Oil Company (NAOC) has a 5% stake in the joint venture.
The statement quoted that the transaction will also see Chappal Energies acquire a 10% participating interest in the 3 other OMLs within the SPDC JV which are mainly gas producing (specifically OML 23, OML 28 and OML 77), while TotalEnergies will retain an economic interest in these licenses which currently account for 40% of Nigeria’s LNG gas supply. Chappal Energies will have rights to the standalone undeveloped oil reserves within these 3 OMLs.
It said,aggregate consideration for the transaction is $860m,while financing will be provided by a TotalEnergies company entity and/or any financial institution selected by TotalEnergies, Trafigura and a syndicate of international Banks.
This strategic acquisition increases Chappal Energies’ asset base and adds significant reserves to the company’s balance sheet,it said,adding that the portfolio includes over 40 producing fields with a network of pipelines, flow stations, processing facilities and two major terminals.
Ufoma Immanuel, Managing Director of Chappal Energies, said: “This acquisition marks a significant expansion in the Niger Delta, thereby diversifying our Nigeria footprint between the offshore and onshore basins. Chappal Energies becomes the first Nigerian company to execute two significant transactions within a 12-month period.
“The transaction is poised to bring substantial benefits to stakeholders, including shareholders, employees, local communities, and the national economy. The closing is subject to certain conditions, including all regulatory and contractual approvals”.