TotalEnergies has signed a Sale and Purchase Agreement to divest its 10% non-operated stake in the Renaissance joint venture in Nigeria, marking another step in the company’s long-running portfolio rationalization in Africa.
Under the agreement, TotalEnergies EP Nigeria will transfer its 10% participating interest in 15 oil-producing licenses to Vaaris, along with the associated rights and obligations. These assets delivered around 16,000 barrels of oil equivalent per day on a net basis to TotalEnergies in 2025, according to the company.
The transaction also includes the transfer of TotalEnergies’ 10% participating interest in three gas-producing licenses – OML 23, OML 28, and OML 77 – although TotalEnergies will retain full economic exposure to these gas assets. The three licenses are strategically significant, as they currently account for roughly half of the gas supply feeding Nigeria LNG, one of the country’s most important export projects.
The Renaissance JV, previously known as the Shell Petroleum Development Company (SPDC) joint venture, operates across 18 licenses in the Niger Delta. The unincorporated venture is owned by Nigerian National Petroleum Corporation Ltd (55%), Renaissance Africa Energy Company Ltd (30%, operator), TotalEnergies EP Nigeria (10%), and Agip Energy and Natural Resources Nigeria (5%).
Completion of the deal is subject to customary closing conditions, including regulatory and governmental approvals.
The sale aligns with TotalEnergies’ broader strategy of high-grading its upstream portfolio, particularly in mature onshore and shallow-water assets in Nigeria’s Niger Delta. International oil companies have increasingly reduced exposure to these areas over the past decade, citing operational risk, community disruptions, environmental liabilities, and regulatory uncertainty.
Several majors-including Shell, ExxonMobil, and Eni-have pursued similar divestments, transferring onshore Nigerian assets to local or regionally focused operators. The emergence of Renaissance Africa Energy as operator of the former SPDC JV is itself a product of this trend, reflecting a shift toward greater domestic participation in Nigeria’s upstream sector.
For TotalEnergies, the transaction does not represent an exit from Nigeria. The company remains heavily invested in offshore oil projects and in gas, particularly through Nigeria LNG. In 2024, Nigeria contributed approximately 209,000 barrels of oil equivalent per day to TotalEnergies’ global production, making it one of the group’s most important hydrocarbon-producing countries.
By retaining full economic interest in the three gas licenses, TotalEnergies is signaling the continued strategic importance of LNG-linked gas production in its Nigerian portfolio. Nigeria LNG is a cornerstone of the country’s gas monetization strategy and a major supplier to global LNG markets, particularly Europe, which has increased imports from Nigeria since the onset of the Russia-Ukraine war.
Maintaining economic exposure while transferring operational and participating interests allows TotalEnergies to reduce complexity and risk without sacrificing cash flow tied to LNG exports.
TotalEnergies has operated in Nigeria for more than six decades and employs over 1,800 people across upstream, gas, and downstream businesses. In addition to its upstream activities, the company runs an extensive downstream network of roughly 540 service stations nationwide.
The transaction underscores the ongoing reshaping of Nigeria’s oil and gas sector, as international majors rebalance portfolios and local players take on a larger operational role in legacy assets.
“When you share your news through OGV, you’re not just getting coverage – you’re getting endorsed by the energy sector’s most trusted voice.”
