TotalEnergies Boosts Nigeria Offshore Position With Bigger OPL257 Stake

TotalEnergies has strengthened its deepwater footprint offshore Nigeria after signing reciprocal deals with Conoil Producing that will lift the French major’s operated interest in block OPL257 from 40% to 90%. In exchange, Conoil will acquire TotalEnergies’ 40% stake in block OML136.

The move consolidates TotalEnergies’ control over one of its most strategically positioned Nigerian offshore blocks. OPL257 sits adjacent to PPL 261, where the company and partners discovered the Egina South field two decades ago. That reservoir extends into OPL257, making operatorship crucial as the company evaluates the resource’s development potential.

TotalEnergies plans to drill an appraisal well on the OPL257 side in 2026, with the aim of maturing Egina South as a low-cost tie-back to the existing Egina FPSO, located roughly 30 kilometers away. Such projects—leveraging existing infrastructure to monetize additional reserves—are at the core of the company’s current capital discipline and portfolio strategy across Africa.

Mike Sangster, TotalEnergies’ Senior Vice-President for Africa, said the deal builds on a long-running partnership with Conoil and provides the clarity needed to advance an “attractive tie-back opportunity” aligned with the firm’s focus on operated gas and offshore oil assets in Nigeria. Tie-backs have become particularly valuable in Nigeria, where declining investment, security challenges, and regulatory delays have pressured output. Reusing infrastructure can reduce cost, shorten timelines, and mitigate above-ground risks.

The transaction follows a broader regional trend as international operators streamline Nigerian portfolios while doubling down on deepwater assets where security risks are lower and project economics remain competitive. TotalEnergies, Nigeria’s largest international operator by production, has maintained a more stable footprint than some peers and continues to invest through both greenfield and brownfield offshore projects.

TotalEnergies remains one of Nigeria’s key hydrocarbon producers, delivering 209,000 boe/d in 2024 across upstream, marketing, and gas operations. The company also operates a large fuel distribution network and emphasizes community engagement as part of its long-standing presence.

Completion of the Conoil transaction is subject to standard regulatory approvals. Once finalized, the strengthened position in OPL257 will give TotalEnergies the operating control required to advance the next phase of development around the Egina hub—an important anchor for Nigeria’s deepwater output and long-term production stability.