TotalEnergies has announced the signing of agreements with Conoil Producing Limited under which the French energy major will acquire a 50 percent operated interest in block Oil Prospecting Lease 257, while Conoil will acquire the 40 percent participating interest held by TotalEnergies in block Oil Mining Lease 136, both located offshore Nigeria.
Upon completion of the transaction, TotalEnergies’ interest in OPL 257 will increase from 40 percent to 90 percent, while Conoil will retain a 10 percent interest in the block.
Covering an area of around 370 square kilometers, OPL 257 is located 150 kilometers offshore the Nigerian coast. The block is adjacent to Petroleum Prospecting Lease 261, where TotalEnergies (24 percent) and its partners discovered the Egina South field in 2005, which extends into OPL 257. An appraisal well of Egina South is planned to be drilled in 2026 on the OPL 257 side, and the field is expected to be developed as a tie-back to the Egina floating production storage and offloading vessel, located approximately 30 kilometers away.
“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO,” said Mike Sangster, Senior Vice President Africa, Exploration and Production at TotalEnergies. “This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria.”
Completion of the transaction is subject to customary conditions, including regulatory approvals.
Sources: africaoilgasreport.com, energy-pedia.com