TotalEnergies has moved to deepen its offshore holdings in Nigeria after reaching an agreement with Conoil Producing to acquire a 50-percent operated interest in Oil Prospecting Licence 257 (OPL257). Conoil, owned by Nigerian billionaire entrepreneur Mike Adenuga, will retain a 10-percent stake in the deep-water asset.
The asset swap will see Conoil secure TotalEnergies’ 40-percent interest in OML136, a deal the companies say will unlock new value for both sides and support continued investment in Nigeria’s energy sector. The transaction remains subject to regulatory approval.
OPL257 lies about 150 kilometres off the country’s southern coast, covering around 370 square kilometres close to the Egina South discovery made in 2005. With a 90-percent position once completed, TotalEnergies intends to drill an appraisal well in 2026. The company believes the block presents a cost-efficient tie-back opportunity to its existing Egina Floating Production Storage and Offloading vessel.
“This transaction enables us to progress the Egina South discovery as part of our long-term strategy for Nigerian offshore assets,” Mike Sangster, Senior Vice President for Africa Exploration & Production at TotalEnergies, said. “We are leveraging what is already in place to profitably advance additional resources.”
The agreement follows a signing ceremony in Paris attended by Conoil Chairman Mike Adenuga Jr. and TotalEnergies CEO Patrick Pouyanné.
Conoil doubles down on production growth
The offshore deal builds on Conoil’s recent operational gains. The company is in the opening stages of a three-year drilling campaign in OML150, supported by a renewed partnership with Shelf Drilling Ltd., aimed at ramping up the Obodo crude blend and boosting reservoir performance.
Earlier this year, Conoil exported the first cargoes of the Obodo grade, a milestone that added a new recognised crude stream to Nigeria’s oil market. With interests across six onshore and offshore blocks, Adenuga’s energy group continues to push deeper into high-potential fields as global demand stabilises.
As Nigeria seeks to lift its investment appeal and unlock stalled offshore resources, the partnership between Conoil and TotalEnergies marks a major vote of confidence, signalling that Africa’s leading oil-and-gas producers are still willing to back the country’s deep-water prospects.
