France’s TotalEnergies SE has strengthened its deepwater portfolio in West Africa through an asset swap with Conoil Producing Ltd., positioning the European major for a promising offshore discovery while allowing the Nigerian independent to expand its own footprint in shallow-to-midwater oil plays.
In agreement seen by BusinessDay, TotalEnergies will acquire a 50^ operated interest in Oil Prospecting Licence (OPL) 257 from Conoil, while transferring its 40% participating interest in Oil Mining Lease (OML) 136 to the Nigerian firm.
Both assets lie in Nigeria’s offshore terrain. The transaction, whose value hasn’t been disclosed, remains subject to regulatory and other customary approvals.
The swap consolidates TotalEnergies’ ownership in OPL 257, boosting its stake to 90% from 40%, leaving Conoil with the remaining 10%.
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The block spans about 370 square kilometres in 150 metres of water, roughly 150 kilometres off Nigeria’s coast. Its proximity to the Egina field, one of Nigeria’s largest deepwater producers, makes it strategically attractive for the French energy major, which has increasingly prioritised tie-back developments to existing infrastructure as part of a capital-discipline drive across its global portfolio.
The acreage sits next to PPL 261, where TotalEnergies, which holds 24%, and partners in 2005 discovered Egina South, an accumulation that straddles into OPL 257.
A long-awaited appraisal well is scheduled for 2026 on the OPL 257 side to determine commerciality and development pathways. If results meet expectations, Egina South could be tied back to the Egina FPSO, located about 30 kilometres away, reducing project costs and shortening time to first oil.
“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO,” said Mike Sangster, senior vice-president for Africa, exploration & production at TotalEnergies.
“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria.”
The French major has been rebalancing its African portfolio as mature oil blocks decline and governments across the region step up the push for gas monetisation.
TotalEnergies already operates Nigeria’s flagship Egina and Akpo deepwater fields and is advancing the Preowei development, another tie-back to Egina, which reached final investment decision earlier this year.
The OPL 257 consolidation also lines up with Nigeria’s effort to stimulate offshore investment through clearer fiscal terms under the Petroleum Industry Act, which became law in 2021. While deepwater investments had slowed for much of the past decade due to contract uncertainty and global capital shifts, renewed interest from majors suggests the sector may be entering a new upcycle.
For Conoil, one of Nigeria’s longest-standing independents, the deal presents an opportunity to build scale in OML 136, an asset with significant gas potential located in the eastern offshore zone. Industry analysts say the company may be positioning for future domestic gas supply opportunities, as Nigeria pushes ahead with its decade-long gas expansion agenda and seeks to commercialise more non-associated gas resources for power generation and industrial feedstock.
By exchanging assets rather than cash, both companies avoid large upfront expenditure and can instead focus capital on near-term drilling and appraisal plans. The structure also reflects a broader industry trend in sub-Saharan Africa, where asset swaps and farm-downs have become increasingly common as majors optimise portfolios and independents seek growth avenues.
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The deal comes amid a flurry of activity for TotalEnergies in the region.
Earlier in September, the company, alongside QatarEnergy and Congo’s state-owned SNPC, secured an exploration permit offshore Congo. It also signed a production-sharing contract for Nigeria’s PPL 2000 and PPL 2001 exploration licences with its partner, South Atlantic Petroleum, where it holds an 80% operated interest.
