NUPRC Cancels TotalEnergies’ $860m Nigerian Onshore Oil Asset Sale to Chappal Energies

NUPRC Cancels TotalEnergies’ $860m Nigerian Onshore Oil Asset Sale to Chappal Energies

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked its earlier approval for TotalEnergies’ planned $860 million divestment of onshore oil assets to Chappal Energies, citing the buyer’s inability to meet key financial and regulatory obligations.

Confirming the development on Wednesday, the NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, told in the interview that Chappal Energies failed to raise the required funds to conclude the transaction.

Consequently, TotalEnergies was unable to pay statutory regulatory fees or provide the mandated financial cover for environmental rehabilitation and future liabilities tied to the assets.

The deal, which was initially announced in 2024, involved the transfer of TotalEnergies’ stake in Oil Mining Lease (OML) 58 and other onshore licenses, as part of the French energy giant’s wider strategy to shift focus from onshore operations in the Niger Delta to offshore projects.

However, the cancellation now casts uncertainty over TotalEnergies’ exit plan from the Nigerian onshore oil space and raises fresh questions about the ability of indigenous firms to finance such large-scale acquisitions amid tighter global lending conditions.

The NUPRC has yet to indicate whether the assets will be reopened to new bidders or if negotiations with Chappal could be revived under revised terms.

Industry watchers say the move underscores the regulator’s emphasis on strict compliance with financial, environmental, and operational obligations in Nigeria’s oil and gas sector, especially at a time when international oil companies are accelerating their divestment from onshore assets due to security, environmental, and community challenges.