TotalEnergies has joined the list of international oil corporations wanting to exit Nigeria’s troubled onshore oil fields, a decision that will further impact Nigeria’s dwindling oil revenue.
On Thursday, Bloomberg reported that the French energy giant announced it will put up for sale its minority stake in a Nigerian oil joint venture.
What this means is that TotalEnergies will no longer be part of the exploration and production of crude oil in the onshore Niger Delta.
Just like Shell, ExxonMobil, Total Energies also wants to focus on deep-water fields away from the difficulties of operating in close proximity to local communities.
Exxon Mobil Corp. agreed in February to sell some of its Nigerian assets to Seplat Energy Plc for at least $1.28 billion.
Similarly, Shell Plc, the operator of the licenses, is already considering bids from four local firms for its 30% shareholding in the company.
The quickening pace of divestment by the oil majors comes at a time the country is struggling to produce enough oil to meet its OPEC quota.
According to Bloomberg, the French energy giant will look to offload its 10% interest in a firm that holds 20 onshore and shallow water permits in the West African country, Chief Executive Patrick Pouyanne said on a conference call Thursday.
He added that the disruption of local communities is a source of great concern in the country.
Using data from Nigeria National Petroleum Corporation (NNPC), it was revealed that in one year, 3.6 million (3,636,400) barrels of oil were lost by oil companies, and NNPC over issues with host communities ranging from salaries, environment and appointments.