Oil and gas supermajor Total has completed the divestment of share in Oil Mining Lease (OML) 29 to Nigeria’s Aiteo Eastern E&P for $569 million, according to a company statement. Proceeds from Total’s share of the OML 29, together with OML 24 and OML 18, amount to more than $1 billion.
Patrick de La Chevardiere, CFO at Total, discussed the strategy of the sale.
“The sale of these non-operated onshore blocks in Nigeria is yet another example of our strategy of dynamic portfolio management, achieved at attractive valuations. These transactions also reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments, such as the Egina project.”
French multinational Total has divested its interests in eleven onshore blocks to Nigerian companies. This is consistent with the Federal Government of Nigeria’s aim of developing Nigerian companies in the industry.
Total continues to hold a 10% stake in several onshore blocks in Nigeria through the Shell Petroleum development Company (SPCD) Joint Venture alongside the Nigerian National Petroleum Corporation (55%), SPDC (30%, operator) and Nigerian Agip Oil Company Limited (5%).