TotalEnergies announced the signing of a strategic agreement with Nigerian company Conoil Producing Limited, allowing it to reinforce its presence in Nigeria’s offshore sector. Following this transaction, TotalEnergies will hold a 90% interest in oil block OPL257, up from 40%, while Conoil will retain the remaining 10%. In return, Conoil will acquire the 40% interest previously held by TotalEnergies in the neighbouring block OML136.
The OPL257 block covers approximately 370 square kilometres and is located 150 kilometres off the Nigerian coast. It borders block PPL261, where the French company and its partners discovered the Egina South field in 2005. This discovery extends into OPL257, where an appraisal well is scheduled for 2026. The field is expected to be developed as a tie-back to the Egina Floating Production Storage and Offloading unit (FPSO), located about 30 kilometres away.
A strategic focus on operated assets
The transaction enables TotalEnergies to consolidate its strategy in Nigeria, focused on developing additional resources by leveraging existing infrastructure. Tying back Egina South to the Egina FPSO provides a technically and economically viable solution, limiting infrastructure investment. The deal also reflects a shift towards operated assets, particularly in offshore oil and natural gas.
According to Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, the deal builds on a longstanding relationship with Conoil and will advance the appraisal of Egina South, considered a natural extension of existing installations. The main Egina field is already in production and serves as a logistical platform for developing the new deposit.
A new phase in TotalEnergies’ offshore expansion
This strengthening of the offshore portfolio in Nigeria comes amid increasing competition among major players for subsea resources in the Gulf of Guinea. By securing 90% of OPL257, TotalEnergies takes a dominant position in a high-potential oil zone, while optimising use of its infrastructure.
The planned appraisal in 2026 will help define recoverable volumes and initiate the next development phases. The agreement with Conoil highlights the dynamism of asset swaps between regional and international players seeking to streamline their presence based on operational priorities. The geographic proximity of the concerned blocks supports the swift implementation of upcoming technical stages.
