TotalEnergies is making a significant shift in Nigeria, selling its onshore oil assets, but what does this mean for the future of the region's energy sector?
French energy giant TotalEnergies has inked a deal to sell its 10% non-operated stake in the Nigerian onshore oil asset, previously known as SPDC, now rebranded as Renaissance JV, to Vaaris. This move comes after a previous sale attempt to Chappal Energies, based in Mauritius, fell through last year.
This deal also encompasses stakes in three additional licenses that primarily produce gas for Nigeria LNG. Interestingly, TotalEnergies will maintain complete economic interest in these licenses.
But here's where it gets controversial... The new buyer, Vaaris Resources JV CO Limited, was only incorporated in Nigeria on December 22, 2025. TotalEnergies hasn't released any further details about this new entity, leaving many questions unanswered.
Last year, the Nigerian regulators put a stop to Total's initial $860 million deal with Chappal Energies for the SPDC stakes. The deal was blocked because the buyer couldn't secure the necessary funds. This setback affected TotalEnergies' plans to divest from older, more polluting assets and reduce its debt.
SPDC has been plagued by hundreds of oil spills, resulting from theft, sabotage, and operational issues. These incidents have led to expensive repairs and high-profile legal battles.
In a separate development last year, Shell sold its 30% stake in SPDC to a consortium of mostly local companies for up to $2.4 billion. The Nigerian National Petroleum Corporation (NNPC) holds a majority 55% stake in the joint venture, with Italy's Eni holding 5%.
And this is the part most people miss... The current deal between TotalEnergies and Vaaris is still subject to approval from Nigerian regulators. This raises the question: Will this new deal face similar challenges as the previous one?
What do you think? Does this sale signal a positive change for Nigeria's oil sector, or are there underlying concerns that need to be addressed? Share your thoughts in the comments below!
