The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued an official clarification on the status of the TotalEnergies and Chappal Energies failed deal.
According to the upstream petroleum sector regulator in a statement on Thursday, the withdrawal of the ministerial consent does not in any way rule out the possibility of a future divestment by the interested parties provided such an asset sale is in line with extant laws.
Business Post had reported that the deal failed as both parties couldn’t fulfill their financial commitments in the deal.
Providing context, the NUPRC noted that it had on October 28, 2024 conveyed a grant of ministerial consent to the transfer of TotalEnergies’ entire 10 per cent participating interest in the Nigerian National Petroleum Company (NNPC) Limited and Shell Petroleum Development Company (SPDC) Joint Venture, excluding OMLs 23, 28 and 77 – to Telema Energies Nigeria Limited (owned by Chappal Energies).
The divestment involved TotalEnergies’ 10 per cent participating interest in Oil Mining Leases (OML) 20, 21, 22, 23, 25, 27, 28, 31, 32, 33, 35, 36, 43, 45, 46, 74, 77 and 79.
However, months after the approval, Chappal Energies failed to consummate the deal.
It said this was despite several extensions “graciously granted by the commission.”
Based on this, the ministerial consent for the deal was withdrawn on May 29, 2025, adding that the withdrawal of a ministerial consent does not in any way rule out the possibility of a future divestment.
The NUPRC affirms that in line with Section 6(h) of the Petroleum Industry Act, it remains committed to promoting an enabling environment for investments in upstream petroleum operations.
Chappal, which is based in Mauritius, failed to raise the $860 million valuation fee, and as a result TotalEnergies did not fulfil its requirement to pay regulatory fees and cover funds for environmental rehabilitation and future liabilities.
The failed deal leaves TotalEnergies saddled with its stake in a business which has struggled with hundreds of oil spills as a result of theft, sabotage and operational issues that led to costly repairs and billions in debt.