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Nigeria’s upstream oil regulator has revoked its earlier approval for TotalEnergies to sell a 10 per cent interest in the Shell Petroleum Development Company (SPDC) joint venture to Mauritius-based Chappal Energies, derailing the French energy giant’s plan to exit onshore operations and reduce debt.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed on Tuesday that the ministerial consent granted in October 2024 had been withdrawn after both parties repeatedly failed to meet the strict financial conditions attached to the deal.
“The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines. However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal,” said NUPRC spokesperson Eniola Akinkuoto.
TotalEnergies had announced in July 2024 that it would sell its 10 per cent stake in SPDC for $860 million. But industry sources said Chappal struggled to raise the funds, preventing TotalEnergies from meeting regulatory requirements, including payment of fees and provision of funds for environmental rehabilitation and future liabilities.
The failed transaction leaves TotalEnergies with its existing stake in a joint venture long plagued by oil spills caused by theft, sabotage and ageing infrastructure.
SPDC’s other shareholders are the Nigerian National Petroleum Company Limited, which holds 55 per cent, and Italy’s Eni with 5 per cent.
TotalEnergies had counted on the sale to help trim its debt, which soared 89 per cent to $25.9 billion by July 2025.
The company’s chief executive, Patrick Pouyanne, previously told investors the Nigerian divestment was one of three deals expected to generate $3.5 billion before year-end to reduce leverage.
Despite this setback, international oil majors continue to scale back Nigerian onshore operations.
Shell finalised the $2.4 billion sale of its own SPDC stake in March 2025, while Seplat Energy completed a $1.28 billion purchase of ExxonMobil’s shallow-water assets in December 2024.
