Nigeria BongaShell Nigeria Exploration and Production Co., or SNEPCo., will acquire 10% of Total’s 12.5% stake in Oil Mining Lease 118 for $408 million, with Agip taking the remaining 2.5% share for $102 million, the Nigerian Upstream Petroleum Regulatory Commission said in a statement late Thursday.The NUPRC granted the approval based on documents that show the acquiring companies “have access to funding to meet their financial obligations,” it said. The commission revoked a separate sale by Total earlier this month after finding the buyer, Chappal Energies, failed to raise the required funds.
Total’s divestment from Nigeria is part of a plan to curb debt. It targets about $3.5 billion in asset sales worldwide, from oil assets to stakes in renewable projects, Chief Executive Officer Patrick Pouyanne said earlier this year.SNEPCo. is already the operator of OML with a 55% stake. Esso Exploration and Production Nigeria held 20% and Agip had a 12.5% share before completion of the sale.