TotalEnergies and Conoil Finalise Offshore Asset Swap in Nigeria
TotalEnergies has confirmed the signing of an asset swap agreement with Conoil Producing Limited, covering two key offshore blocks in Nigeria. The deal involves strategic exchanges of stakes aimed at optimizing operations and accelerating exploration projects in the country’s offshore oil sector.
Under the agreement, TotalEnergies will acquire a 50 per cent operated stake in Oil Prospecting Licence (OPL) 257 from Conoil. In return, Conoil will take over TotalEnergies’ 40 per cent participating interest in Oil Mining Lease (OML) 136. The transaction will increase TotalEnergies’ holding in OPL 257 from 40 per cent to 90 per cent, leaving Conoil with the remaining 10 per cent stake.
OPL 257 spans approximately 370 square kilometres, situated about 150 kilometres off Nigeria’s coast. The block is adjacent to PPL 261, where TotalEnergies and partners discovered the Egina South field in 2005. Plans are underway for an appraisal well in 2026, with the development expected to be a tie-back to the Egina Floating Production, Storage and Offloading (FPSO) facility, located roughly 30 kilometres away.
Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, said, “This transaction, built on our longstanding partnership with Conoil, will allow TotalEnergies to move forward with the appraisal of the Egina South discovery, which represents an attractive tie-back opportunity for Egina FPSO. This aligns perfectly with our strategy to leverage existing production infrastructure to develop additional resources profitably while focusing on our operated gas and offshore oil assets in Nigeria.”
The deal is part of both companies’ broader strategy to strengthen their positions in Nigeria’s offshore sector, enhance operational efficiency, and prioritize the development of high-potential discoveries. Completion of the asset swap is subject to regulatory approvals and other customary conditions typical of such transactions.
Industry observers note that this asset swap reflects a growing trend among oil and gas operators in Nigeria to restructure portfolios for more focused exploration and production, maximizing returns while leveraging existing infrastructure. The development is expected to boost TotalEnergies’ production capacity and create opportunities for accelerated exploration in the Nigerian offshore basin.
