French energy giant TotalEnergies has strengthened its oil and gas portfolio in African waters by completing an asset exchange deal with Conoil that significantly increases its stake in an offshore Nigerian license. Under the agreements, TotalEnergies will acquire a 50 percent operated interest in block OPL257, while Conoil will receive a 40 percent participating interest in block OML136, both located offshore Nigeria.
Upon completion of the transaction, which remains subject to regulatory approvals, TotalEnergies’ interest in OPL257 will increase from 40 percent to 90 percent, with Conoil retaining a 10 percent stake. The license covers approximately 370 square kilometers and is situated 150 kilometers offshore Nigeria.
The block is adjacent to PPL 261, where TotalEnergies and its partners discovered the Egina South field in 2005, which extends into OPL257. An appraisal well is planned for drilling in 2026 on the OPL257 side, and the field is expected to be developed as a tie-back to the FPSO Egina, located approximately 30 kilometers away.
Mike Sangster, Senior Vice-President Africa, Exploration and Production at TotalEnergies, stated that the transaction, built on the company’s longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, describing it as an attractive tie-back opportunity for the Egina FPSO. He noted that this fits perfectly with the company’s strategy to leverage existing production facilities to profitably develop additional resources and focus on operated gas and offshore oil assets in Nigeria.
The deal follows TotalEnergies’ recent expansion activities in Africa, including obtaining an exploration permit offshore Congo with QatarEnergy and SNPC, and signing production sharing contracts for exploration licenses in Nigeria with South Atlantic Petroleum.
Source: offshore-energy.biz, orientalnewsng.com