The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified why it cancelled the TotalEnergies’ $860 million asset sale to Chappal Energies.
NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, made the clarification on Wednesday.
TotalEngeries had agreed in July 2024 to sell its 10% stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Mauritius-based Chappal Energies.
In October last year, a ministerial consent was granted for the sale of the onshore Nigerian oil asset.
However, NUPRC explained that the regulatory approval for the sale of the asset granted in October last year was withdrawn because the parties could not meet the financial obligations required to complete the deal.
“The ministerial consent was accompanied by certain financial obligations to the Nigerian people with strict deadlines. However, both parties failed to meet their financial commitments after repeated extensions, forcing the commission to cancel the deal,” she said.
TheFact Daily gathered that the deal could not pull through because Chappal failed to raise the $860 million, and as a result Total did not fulfil its requirement to pay regulatory fees and cover funds for environmental rehabilitation and future liabilities.
