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•French oil giant rakes in $800m
By Adewale Sanyaolu
Nigeria’s onshore oil sector suffered another major shake-up yesterday as French energy giant TotalEnergies and Italian oil major Eni completed separate deals to divest their interests in the Renaissance Joint Venture (JV), formerly known as the Shell Petroleum Development Company (SPDC) JV, deepening the retreat of international oil companies (IOCs) from the Niger Delta’s onshore assets.
While TotalEnergies sold its 10 per cent non-operated interest in the Renaissance Joint Venture (JV) stake to Vaaris for $800 million, Eni completed the sale of its subsidiary, Agip Energy and Natural Resources (Nigeria) Limited (AENR), which holds a five per cent interest in the joint venture, to Apex Global Energy Limited, a company wholly owned by Sterling Oil Exploration and Energy Production Company Limited.
The transactions underscore the continuing retreat of international oil companies (IOCs) from Nigeria’s onshore and shallow-water oil operations as they reposition their portfolios towards deepwater assets and gas development.
Under the completed agreement, TotalEnergies EP Nigeria transferred its 10 per cent participating interest in 15 mainly oil-producing licences within the Renaissance JV. The divested assets accounted for approximately 16,000 barrels of oil equivalent per day of attributable production in 2025. However, the French energy company retained its full economic interest in three gas-producing licences: OML 23, OML 28 and OML 77 which account for 50 per cent of the gas supplied to Nigeria LNG (NLNG). The retention of the gas interests highlights the strategic importance of Nigeria’s gas resources to the company’s operations, even as it withdraws from part of its onshore oil portfolio.
Eni’s transaction involves the transfer of AENR, its wholly owned subsidiary engaged in onshore and shallow-water hydrocarbon exploration and production, to Apex Global Energy. The deal received approval from all relevant authorities and aligns with Eni’s strategy to optimise its upstream portfolio by divesting non-strategic assets.
Before the sales, the Renaissance JV was structured with Renaissance as operator holding 30 per cent, TotalEnergies with 10 per cent, Eni’s AENR with five per cent, and the Nigerian National Petroleum Company Limited (NNPC) holding 55 per cent.
The deals bring further changes to the ownership of one of Nigeria’s key onshore oil and gas joint ventures, with domestic players taking over interests previously held by international companies.
TotalEnergies’ transaction follows an earlier attempt to sell the same 10 per cent stake to Chappal Energies for about $860 million in 2024. That transaction was rejected by Nigerian authorities, making the agreement with Vaaris a fresh milestone in the company’s divestment plans.
The wider industry shift has been driven by operational difficulties, crude oil theft, pipeline vandalism, security concerns and complex community relations in the Niger Delta.
These challenges have encouraged several international oil companies to reduce their exposure to onshore and shallow-water assets while concentrating on deepwater production and gas projects.
Despite the divestments, both companies will maintain a presence in Nigeria through other strategic investments, especially gas assets.
TotalEnergies, which produced 188,000 barrels of oil equivalent per day in Nigeria in 2025, continues to focus on deep-offshore operations and gas infrastructure.
The company also has a significant downstream presence, with about 540 service stations and more than 1,800 employees in the country.
Eni will similarly retain its Nigerian presence through the exploration and development of deep-offshore assets and its participation in Nigeria LNG.
The latest transactions reflect the changing balance between international and indigenous participation in Nigeria’s petroleum industry, as local operators expand their interests in mature onshore assets and foreign companies redirect capital towards projects they consider more strategic.
