TotalEnergies has signed a Farm-Out Agreement to sell a 40% participating interest in offshore block OPL257 in Nigeria to South Atlantic Petroleum Limited (SAPETRO). Following completion of the transaction, TotalEnergies will retain a 50% operated interest in the block, while SAPETRO will hold 40% and Conoil will retain 10%.
The agreement is intended to strengthen cooperation between TotalEnergies and SAPETRO and support appraisal work for the Egina South field, which extends across OPL257 and the adjacent PPL261 block. Located approximately 150 kilometres offshore Nigeria, OPL257 is adjacent to PPL261, where TotalEnergies and its partners discovered the Egina South field in 2005. TotalEnergies holds a 24% interest in PPL261, alongside its partners, including SAPETRO.
An appraisal campaign on the OPL257 side of the Egina South field is planned for the coming months. The work will help assess the potential for developing the field through a tie-back to the Egina floating production, storage and offloading (FPSO) vessel. The Egina FPSO is located approximately 30 kilometres from the field. A tie-back development could allow production from Egina South to be connected to existing offshore infrastructure, subject to the outcome of appraisal activities and the relevant development approvals.
Mike Sangster, Senior Vice President, Africa Exploration and Production at TotalEnergies, said the company welcomed SAPETRO as a partner in OPL257, building on their existing relationship in the neighbouring PPL261 block. He said the agreement would support an appraisal campaign and potentially advance development of Egina South if the results were positive.
Sangster added that the transaction was consistent with TotalEnergies’ strategy of developing low-cost, low-emission resources by making use of existing infrastructure. The proposed transaction will change the ownership structure of OPL257 while allowing TotalEnergies to remain the operator with a 50% participating interest. SAPETRO’s entry as a partner is expected to support the next phase of technical work on the block. Completion of the Farm-Out Agreement remains subject to customary conditions, including the required regulatory approvals.
TotalEnergies is a global integrated energy company operating across oil and natural gas, electricity, renewables and other energy businesses. Its activities include exploration and production, refining, petrochemicals, power generation and energy trading. The company operates in multiple countries and is developing its energy portfolio across conventional and lower-carbon sources.
