TotalEnergies Divests 40% Interest In OPL257 Offshore Nigeria

Oil major, TotalEnergies has signed a farm-out agreement to sell a 40 per cent participating interest in offshore block OPL257, Nigeria, to South Atlantic Petroleum Ltd. (SAPETRO).

The deal sets up an appraisal campaign on the Egina South field, which TotalEnergies plans to develop as a tie-back to its Egina FPSO.

Once the transaction closes, TotalEnergies will hold a 50 per cent operated interest in OPL257, with SAPETRO holding 40 per cent and Conoil 10%.
The block lies about 150 km (93 mi) offshore Nigeria, next to PPL261. TotalEnergies (24%) and its partners in PPL261, including SAPETRO, discovered Egina South there in 2005, and the field straddles both blocks.

The appraisal campaign on the OPL257 side of the field will begin in the coming months. It is intended to support a potential development of Egina South as a tie-back to the Egina FPSO, about 30 km (19 mi) away.

“TotalEnergies is pleased to have SAPETRO as a partner in OPL257 as well as in the adjacent PPL261 block,” said Mike Sangster, senior vice president, Africa exploration and production at TotalEnergies. “Consolidating our long-term partnership paves the way for a quick appraisal campaign and subsequent development of Egina South in the success case.”
He added, “For TotalEnergies, this is consistent with our strategy to develop low-cost, low-emission resources while leveraging existing facilities.”

Completion of the transaction is subject to customary conditions, including regulatory approvals