TotalEnergies has announced a strategic asset swap with Conoil Producing Limited, significantly increasing its stake in one of Nigeria’s key offshore oil blocks.
Under the agreement, TotalEnergies will acquire a 50 per cent operated interest in Oil Prospecting Licence (OPL) 257 from Conoil, boosting its holding in the block from 40 per cent to 90 per cent. Conoil will, in turn, take over TotalEnergies’ 40 per cent participating interest in Oil Mining Lease (OML) 136, retaining a 10 per cent stake in OPL 257.
Covering approximately 370 square kilometres and located 150 kilometres off Nigeria’s coast, OPL 257 neighbors PPL 261, where TotalEnergies and partners discovered the Egina South field in 2005. Plans are underway for an appraisal well in 2026, with the discovery expected to be developed as a tie-back to the Egina Floating Production, Storage, and Offloading (FPSO) unit situated around 30 kilometres from the block.
Mike Sangster, Senior Vice-President of Africa Exploration & Production at TotalEnergies, said the deal “will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO. This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria.”
The transaction is subject to regulatory approvals and customary closing conditions. Analysts say the move strengthens TotalEnergies’ position in Nigeria’s offshore sector while enabling Conoil to consolidate its upstream assets.
