TotalEnergies has signed agreements with Conoil Producing Limited to consolidate a 90% operated interest in block OPL 257.
TotalEnergies has announced a significant reshaping of its offshore portfolio in Nigeria through a new asset exchange agreement with indigenous energy company Conoil Producing Limited. The deal serves a dual purpose: it allows the French energy major to consolidate its position in key deepwater assets while divesting from non-core blocks, aligning with its broader strategy of focusing on low-cost, low-carbon advantaged barrels.
Under the terms of the agreement, TotalEnergies will acquire a 50% operated interest from Conoil in block OPL 257. This acquisition raises TotalEnergies’ total holding in the block from 40% to a commanding 90%, leaving Conoil with a retained 10% interest. Simultaneously, Conoil will acquire the 40% participating interest currently held by TotalEnergies in block OML 136. Both assets are located offshore Nigeria, a region that remains critical to TotalEnergies' global production profile.
The strategic centerpiece of this transaction is the future development of the Egina South field. OPL 257 covers an area of approximately 370 square kilometers and is situated 150 kilometers off the Nigerian coast. Crucially, the block is adjacent to PPL 261, where TotalEnergies and its partners discovered the Egina South field in 2005. The reservoir extends into OPL 257, making the consolidation of ownership a vital step toward unified development.
With a dominant 90% stake now secured, TotalEnergies has outlined concrete plans to move the project forward. The company intends to drill an appraisal well on the OPL 257 side of the field in 2026. If successful, the field will be developed as a "tie-back" to the existing Egina Floating Production, Storage, and Offloading (FPSO) vessel, which is located just 30 kilometers away.
Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, highlighted the efficiency of this approach. "This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO," Sangster stated.
He noted that the move fits perfectly with the company’s strategy to leverage existing production facilities—massive infrastructure investments like the Egina FPSO—to profitably develop additional resources. By feeding new oil into existing hubs, operators can significantly reduce capital expenditure and accelerate the time to first oil.
For Conoil, the acquisition of the 40% stake in OML 136 represents a continued expansion of indigenous capacity in Nigeria’s upstream sector. As international majors increasingly focus on deepwater giants and LNG projects, local companies are stepping in to take operational control of other substantial offshore and onshore assets.
