France’s Total completed the sale of its non-operated stake in onshore Nigeria oil mining lease (OML) 29 to Nigeria’s Aiteo Eastern E&P on Monday for $569 million.
“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,” Total CFO Patrick de La Chevardière said.
Together with recently completed divestments from OML 24 and OML 18 Total’s share of sale proceeds from these three onshore Nigerian blocks comes in at over $1 billion.
“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,” Chevardière added.
Royal Dutch Shell sold its 30 percent stake in OML 18 last week to Eroton Exploration & Production Company for $737 million.
Total holds a 10 percent stake in several onshore Nigeria blocks through the Shell Petroleum Development Company (SPDC) joint venture alongside the Nigerian National Petroleum Corporation and Nigerian Agip Oil Company Limited.
The Nigerian National Petroleum Corporation holds a 55 percent stake in the JV, SPDC holds a 30 percent operating stake and Nigerian Agip Oil Company Limited holds a 5 percent stake.
Since 2010, Total has divested from interests in eleven onshore blocks to Nigerian companies, in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the sector.
The group’s production in Nigeria was 257,000 barrels of oil equivalent per day in 2014.