TotalEnergies has agreed to sell its 10% non-operated stake in Nigeria’s onshore oil venture, formerly known as Shell Petroleum Development Company (SPDC), now renamed the Renaissance Joint Venture, to Vaaris Resources.
This was disclosed by TotalEnergies on Wednesday on its website.
The transaction marks TotalEnergies’ second attempt to dispose of the asset, following regulatory rejection of a proposed $860 million sale to Mauritius-based Chappal Energies in 2025.
Nigerian authorities had cited concerns over the buyer’s financial capacity, a decision that disrupted TotalEnergies’ strategy to divest from ageing onshore assets and reduce exposure to operational and security risks.
Under the new agreement, TotalEnergies will transfer its 10% stake in the Renaissance Joint Venture to Vaaris Resources, a relatively new player in Nigeria’s upstream oil and gas sector.
Corporate records show that Vaaris Resources JV Co. Limited was incorporated in Nigeria on December 22, 2025.
TotalEnergies did not disclose the financial terms of the deal, nor did it provide details on the ownership structure or funding arrangements backing Vaaris Resources.
As with similar transactions in the sector, the sale is subject to regulatory approvals from Nigerian authorities.
Beyond the SPDC stake, the transaction also includes interests in three additional oil and gas licences that primarily supply gas to Nigeria LNG (NLNG).
However, TotalEnergies clarified that it will retain full economic interest in these gas-focused assets, highlighting its intention to remain active in Nigeria’s gas sector.
The company has consistently described natural gas as a transition fuel that aligns with its global energy strategy, even as it exits more carbon-intensive and operationally challenging oil assets.
SPDC, one of Nigeria’s oldest onshore oil ventures, has long been beset by crude theft, pipeline vandalism, and ageing infrastructure.
These challenges have led to frequent production disruptions, extensive environmental damage, and multiple lawsuits both locally and internationally, making the asset increasingly unattractive to international operators.
TotalEnergies’ planned exit demonstrates the accelerating shift of international oil companies away from Nigeria’s onshore oil sector, where security and environmental risks have eroded profitability.
The move mirrors Shell’s decision last year to sell its 30% stake in SPDC to a consortium of mostly indigenous firms in a deal valued at up to $2.4 billion.
This transition is reshaping Nigeria’s oil and gas landscape, with local and regional companies assuming greater responsibility for legacy assets once dominated by multinational oil firms.
This transition is reshaping Nigeria’s oil and gas landscape, with local and regional companies assuming greater responsibility for legacy assets once dominated by multinational oil firms.
The Renaissance Joint Venture is currently owned by NNPC Limited (55%), Shell’s successor consortium (30%), TotalEnergies (10%), and Italy’s Eni (5%).
With TotalEnergies’ exit, Vaaris Resources would become a minority partner, subject to approval by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Regulators are expected to closely examine the technical competence and financial strength of Vaaris Resources, following concerns raised during the failed Chappal Energies transaction.
The deal, if approved, would further entrench indigenous participation in Nigeria’s onshore oil sector amid persistent security, environmental, and community-related challenges.