TotalEnergies to sell Nigerian onshore oil business

0
47
FILE PHOTO: TotalEnergies signs are seen at a petrol station in Nice, France, October 10, 2022. REUTERS/Eric Gaillard/File Photo

French energy giant, TotalEnergies, has disclosed plans to sell its onshore business in Nigeria.

This is coming after oil major, Shell, announced last month that it was selling its onshore property, the Shell Petroleum Development Company (SPDC).

TotalEnergies CEO, Patrick Pouyanne, said operation in the Niger Delta is a “real difficulty.”

TotalEnergies holds a 10% stake in SPDC. But on Wednesday, during the annual results presentation of TotalEnergies, Pouyanne said, “We want to divest our share of SPDC, and we are looking to reshape the portfolio.

“Fundamentally, it’s because producing this oil in the Niger Delta is not in line with our (Health, Security and Environmental) policies, it’s a real difficulty.”

However, Pouyanne emphasised that TotalEnergies will not divest from its Nigerian gas business.

Pouyanne described the gas business as crucial for the company’s planned expansion of liquefied natural gas development in the coming years.

The sale of the company’s onshore business still depends on regulatory approval.

Leave a Reply