TotalEnergies Boosts Nigeria Offshore Position With Bigger OPL257 Stake

Core Viewpoint - TotalEnergies has enhanced its deepwater presence in Nigeria by increasing its operated interest in block OPL257 from 40% to 90% through a deal with Conoil Producing, while Conoil acquires TotalEnergies' 40% stake in block OML136 [1][7] Group 1: Strategic Positioning - The acquisition consolidates TotalEnergies' control over block OPL257, which is strategically located next to PPL 261, where the Egina South field was discovered, making operatorship essential for evaluating resource development [2] - TotalEnergies plans to drill an appraisal well in OPL257 in 2026 to develop Egina South as a low-cost tie-back to the existing Egina FPSO, located approximately 30 kilometers away [3] Group 2: Operational Strategy - The deal is part of TotalEnergies' strategy to focus on operated gas and offshore oil assets in Nigeria, leveraging existing infrastructure to reduce costs and mitigate risks associated with declining investment and security challenges [4] - The transaction reflects a broader trend among international operators in Nigeria, who are streamlining portfolios while focusing on deepwater assets where project economics remain favorable [5] Group 3: Production and Community Engagement - TotalEnergies is a key hydrocarbon producer in Nigeria, with a production rate of 209,000 barrels of oil equivalent per day (boe/d) in 2024 across various operations [6] - The company emphasizes community engagement as part of its long-standing presence in Nigeria, alongside operating a large fuel distribution network [6]