Nigeria Cancels Approval of TotalEnergies’ $860m Asset Sale to Chappal Energies
Nigeria’s oil regulator has revoked approval for TotalEnergies’ planned $860 million divestment of its 10% stake in Shell Petroleum Development Company (SPDC) to Chappal Energies, citing noncompliance with regulatory conditions.
The deal, first cleared in 2024, required Chappal Energies to meet a series of obligations before the transaction could be finalised. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the buyer missed key payment deadlines and failed to provide adequate proof of financial and technical capacity. The regulator’s decision effectively nullifies the earlier approval.
For Nigeria’s oil sector, the move signals a tougher line on asset transfers. Regulators are showing they will not hesitate to withdraw consent if buyers fall short after approval is granted. This is expected to reshape how future deals are structured, with stronger escrow arrangements and firmer guarantees likely to feature more prominently.
The revocation has unsettled some investors, who worry about the uncertainty it creates in Nigeria’s divestment space. Others argue it strengthens regulatory credibility by holding buyers to account. Legal challenges may follow, with both TotalEnergies and Chappal Energies expected to weigh their options.
The outcome of this case will be closely watched, as it could set a precedent for how Nigeria manages oil asset transfers in a period when international oil companies are scaling back their onshore holdings.
