NUPRC Cancels $860m TotalEnergies–Chappal Deal, Raising Oil Divestment Concerns

The NUPRC has canceled the $860 million TotalEnergies–Chappal deal, raising concerns about Nigeria's oil divestments. The French oil major's planned sale of a 10% stake in SPDC to Chappal Energies was revoked due to failure to meet financial obligations.

Despite deadline extensions, Chappal Energies couldn't secure financing, leading to regulatory issues. This highlights uncertainties in Nigeria's upstream oil sector, with TotalEnergies now stuck with onshore assets facing challenges like oil theft and spills.

In contrast, Shell successfully sold a 30% SPDC stake earlier. The failed deal underscores the complexities of divestments in Nigeria's oil industry.