NUPRC Clarifies Status of TotalEnergies–Chappal Energies Divestment Deal

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has provided clarity on the much-discussed divestment agreement between TotalEnergies and Chappal Energies, following mounting media enquiries and public speculation about the transaction.

In a statement issued by the Commission, the regulator confirmed that ministerial consent was initially granted on October 28, 2024, for the transfer of TotalEnergies’ 10% participating interest in the Nigerian National Petroleum Company Limited (NNPCL) and Shell Petroleum Development Company (SPDC) Joint Venture to Telema Energies Nigeria Limited, a subsidiary of Chappal Energies.

The deal covered several Oil Mining Leases (OMLs), including OMLs 20, 21, 22, 25, 27, 31, 32, 33, 35, 36, 43, 45, 46, 74, and 79—while excluding OMLs 23, 28, and 77.

However, according to the Commission, Chappal Energies failed to conclude the transaction within the stipulated timeline, despite being granted multiple extensions. Consequently, the NUPRC announced that it had formally withdrawn ministerial consent on May 29, 2025.

The regulator clarified that the withdrawal of consent does not permanently close the door on future transactions between the parties, provided that all processes comply with the requirements of Nigeria’s laws and petroleum regulations.

Reiterating its mandate under Section 6(h) of the Petroleum Industry Act, the Commission assured stakeholders of its commitment to creating a transparent and enabling environment for investment in Nigeria’s upstream petroleum sector.

Industry analysts suggest that the clarification is timely, as divestments by international oil companies (IOCs) continue to reshape Nigeria’s oil and gas landscape, with indigenous firms playing increasingly prominent roles.