Chappal Energies has announced the acquisition of a 10 per cent non-operated interest in TotalEnergies EP Nigeria Limited’s onshore and shallow water assets within the Shell Petroleum Development Company Joint Venture (SPDC JV) in the Niger Delta.
The Sale and Purchase Agreement (SPA) transaction is valued at $860 million and is expected to close by December 31, 2024.
This strategic move includes a 10 per cent interest in 15 Oil Mining Leases (OMLs) and two main export terminals, Forcados and Bonny Terminals.
Chappal Energies, yesterday explained that the transaction is expected to close by December 31, 2024. The acquisition includes a 10 per cent interest in 15 Oil Mining Leases (OMLs) and two main export terminals in Nigeria specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint Venture (SPDC JV).
According to the firm, in this joint venture, the Nigerian National Petroleum Corporation Limited (NNPCL) holds a 55 per cent stake, SPDC operates with a 30 per cent stake, and Nigerian Agip Oil Company (NAOC) has a five per cent stake.
“The transaction will also see Chappal Energies acquire a 10 per cent participating interest in the 3 other OMLs within the SPDC JV which are mainly gas producing (specifically OML 23, OML 28 and OML 77), while TotalEnergies will retain an economic interest in these licenses which currently account for 40 per cent of Nigeria’s LNG gas supply. Chappal Energies will have rights to the standalone undeveloped oil reserves within these 3 OMLs.”
It added that “aggregate consideration for the transaction is $860 million. Financing will be provided by a TotalEnergies company entity and/or any financial institution selected by TotalEnergies, Trafigura and a syndicate of international banks.
“This strategic acquisition increases Chappal Energies’ asset base and adds significant reserves to the company’s balance sheet. The portfolio includes over 40 producing fields with a network of pipelines, flow stations, processing facilities and two major terminals.”
The managing director of Chappal Energies, Ufoma Immanuel said, “This acquisition marks a significant expansion in the Niger Delta, thereby diversifying our Nigeria footprint between the offshore and onshore basins.
“Chappal Energies becomes the first Nigerian company to execute two significant transactions within 12 months.”
Immanuel pointed out that the transaction is poised to bring substantial benefits to stakeholders, including shareholders, employees, local communities, and the national economy, saying, the closing is subject to certain conditions, including all regulatory and contractual approvals.
Chappal Energies is an energy company focusing on unlocking latent value in Africa’s oil and gas resources and revitalising ageing assets with solutions that secure longevity in a socially and environmentally sustainable manner.
