NIGERIA —TotalEnergies has entered into a Farm-Out Agreement with South Atlantic Petroleum Limited (SAPETRO) covering the transfer of a 40% participating interest in offshore block OPL257, located approximately 150 kilometres off the Nigerian coast. Following completion, TotalEnergies will retain a 50% operated stake, while SAPETRO will hold 40% and Conoil will maintain the remaining 10% interest. The transaction remains subject to customary completion requirements, including regulatory approvals.
The revised ownership structure strengthens the partnership between TotalEnergies and SAPETRO across two neighbouring offshore assets. Both companies already have interests in the adjacent PPL261 block, where the Egina South field was discovered in 2005. The hydrocarbon discovery extends across the boundaries of PPL261 and OPL257, making further assessment of the OPL257 portion important for determining the development potential of the wider field.
An appraisal campaign is planned on the OPL257 section of Egina South in the coming months. The programme will generate additional subsurface information to assess the resource potential and establish whether the discovery can progress towards commercial development. If the appraisal results support development, the proposed production strategy involves connecting the field to the existing Egina floating production, storage and offloading (FPSO) facility, situated approximately 30 kilometres from the discovery.
Using existing offshore production infrastructure could reduce the need for a standalone processing and export system, potentially limiting additional capital expenditure, development complexity and project lead times. The approach is particularly relevant to offshore oil and gas operators seeking to commercialise discoveries through nearby producing assets rather than constructing entirely new facilities. It could also support more efficient utilisation of existing production capacity, subject to technical and commercial feasibility.
The development has implications for Nigeria’s offshore upstream sector, particularly exploration and production activity in the deepwater Niger Delta region. Successful appraisal could create an additional opportunity to expand production from an established offshore operating area, while reinforcing the role of partnerships in financing and advancing complex offshore developments. For investors and industry participants, the transaction represents a shift in asset ownership ahead of a potentially important appraisal programme, although commercial development remains dependent on the technical findings and subsequent investment decisions.
TotalEnergies is a global integrated energy company involved in oil and gas exploration, production, refining, power generation and renewable energy. SAPETRO is a Nigerian oil and gas company participating in upstream petroleum exploration and development. The agreement expands SAPETRO's interest in OPL257 while allowing TotalEnergies to retain operatorship and a majority participating interest in the block.
