TotalEnergies has agreed to acquire a 50% operated interest in block OPL257 offshore Nigeria from Conoil Producing, increasing its stake from 40% to 90%.  

The acquisition of an additional stake in block OPL257 is part of an asset swap, with Conoil taking over TotalEnergies’ 40% interest in block OML136. 

Upon completion, Conoil will retain a 10% interest in OPL257, while TotalEnergies will hold a 90% operated stake. 

Block OPL257 covers around 370km² and is located 150km offshore Nigeria. 

It is adjacent to PPL261, where TotalEnergies (24%) and its partners discovered the Egina South field in 2005, which extends into OPL257. 

An appraisal well for Egina South is planned on the OPL257 side in 2026. 

The field is expected to be developed as a tie-back to the Egina floating production storage and offloading (FPSO) unit approximately 30km away. 

Closing of the transaction is subject to customary conditions including regulatory approvals. 

TotalEnergies Africa exploration and production senior vice-president Mike Sangster said: “This transaction, built on our long-standing partnership with Conoil, 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.” 

TotalEnergies has operated in Nigeria for more than 60 years and currently employs over 1,800 people across various business segments. 

The company said that Nigeria is a significant contributor to its hydrocarbon production, with 209,000 barrels of oil equivalent per day (boepd) produced in 2024. 

TotalEnergies also operates a distribution network of around 540 service stations in the country. 

In September this year, Nigeria approved TotalEnergies’ $510m (€442.86m) divestment of its interest in Oil Mining Lease 118, which includes the Bonga field, to Shell and Nigerian Agip Exploration (Agip). 

Shell Nigeria Exploration will acquire 10% of TotalEnergies’ 12.5% stake for $408m (£312.24m), while Agip will take the remaining 2.5% interest for $102m (N148.71bn).  

Last month, Shell subsidiary Shell Nigeria Exploration and Production Company, together with its partner Sunlink Energies and Resources, reached the final investment decision on the HI gas project offshore Nigeria.