TotalEnergies’ planned exit from a major Nigerian onshore asset has collapsed, the country’s oil regulator has confirmed, throwing the French energy giant’s divestment strategy into disarray.
The company had announced in July 2024 that it would sell its 10 per cent stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Mauritius-based Chappal Energies. The deal was part of a wider effort by international oil companies to retreat from Nigeria’s onshore operations, which have long been plagued by oil spills, theft, and security challenges.
Regulatory approval was granted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October 2024. However, the regulator has now revoked its consent after both parties failed to meet mandatory financial requirements. According to officials, Chappal was unable to raise the $860 million needed to complete the acquisition, while TotalEnergies defaulted on regulatory fees and failed to set aside funds earmarked for environmental remediation and future liabilities.
The setback means that TotalEnergies remains entangled in a troubled asset it had hoped to shed, undermining its plan to streamline operations and cut exposure to polluting, high-maintenance oilfields. The collapse of the sale is particularly significant given the company’s broader financial pressures: TotalEnergies’ debt had risen by 89 per cent to $25.9 billion by July 2024, intensifying the need for asset disposals to strengthen its balance sheet.
The failed transaction stands in sharp contrast to Shell’s successful divestment earlier this year. In March 2025, Shell completed the sale of its 30 per cent stake in SPDC, marking one of the most prominent exits in the wave of international oil company withdrawals from Nigeria’s onshore sector. Shell’s departure was viewed as a milestone, highlighting both the difficulties and opportunities presented by Nigeria’s oil divestment landscape.
TotalEnergies’ inability to close its deal leaves questions about the future of its Nigerian operations and the appetite of potential buyers. The financing hurdles faced by Chappal highlight the challenges confronting local firms seeking to acquire assets from international majors. Access to capital, combined with regulatory compliance costs and environmental obligations, often proves prohibitive.
For Nigeria, the breakdown of the sale is also a setback. The government has encouraged local participation in the oil sector, but transactions have frequently been bogged down by funding gaps and disputes over liabilities. The NUPRC’s decision to revoke approval underscores its determination to enforce compliance, even at the cost of derailing high-profile deals.
TotalEnergies has yet to outline its next steps, but the collapse of the sale is likely to complicate its divestment strategy, which has been central to its efforts to reduce debt and reposition its portfolio towards cleaner, more sustainable energy. With oil theft, sabotage, and environmental damage continuing to dog Nigeria’s onshore industry, the company faces an uphill struggle to find new buyers willing and able to take on its stake.
