Afroil: TotalEnergies joins other IOCs in selling Nigerian onshore assets

TotalEnergies (France) intends to join other international oil companies (IOCs) in trimming its onshore portfolio in Nigeria. It will accomplish this goal by unloading its minority stake in Shell Petroleum Development Corp. (SPDC), a joint venture that operates 19 onshore oil and gas licences in the southern part of the country.

Patrick Pouyanné, the CEO of TotalEnergies, announced plans to exit SPDC on April 28, during a conference call on first-quarter earnings. He did not say when the sale might go forward or whether any potential investors had stepped forward.

But he did indicate that TotalEnergies’ decision to sell was at least partly motivated by concerns about clashes with host communities in southern Nigeria. Shell and SPDC’s other shareholders have drawn a great deal of criticism for environmental damage and oil spills. “Disruption of local communities are sources of great concerns” in Nigeria, Pouyanné noted.