TotalEnergies And Conoil Sign Deal To Boost Oil Production In Nigeria

By Naija Enquirer Staff

TotalEnergies has signed agreements with Conoil Producing Limited to acquire a 50% interest in Oil Processing Licence (OPL) 257, a deep-water offshore block in Nigeria. In exchange, Conoil will take over the 40% participating interest currently held by TotalEnergies in Oil Mining Lease (OML) 136, also located offshore.

Following the completion of the transaction, TotalEnergies’ interest in OPL 257 will rise from 40% to 90%, leaving Conoil with a 10% stake in the block.

OPL 257: A Strategic Deep-Water Asset

The offshore field, which spans approximately 370 square kilometres, lies about 150 kilometres from Nigeria’s coastline. It shares boundaries with PPL 261, where TotalEnergies (24%) and its partners discovered the Egina South field in 2005. The field stretches into OPL 257.

A key part of the plan is an appraisal well scheduled for 2026 on the OPL 257 stretch of Egina South. The block is expected to be developed as a tie-back to the Egina Floating Production Storage and Offloading (FPSO) unit, located roughly 30 km away.

Deal Strengthens Longstanding Partnership

Speaking on the agreement, Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, said the transaction reinforces the relationship between both companies and unlocks new opportunities.

“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for the 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,” he added.

The agreement positions TotalEnergies to accelerate offshore oil development while enabling Conoil to expand its footprint within Nigeria’s deep-water exploration space.