The TotalEnergies asset swap delivers a strategic boost as the firm increases its stake in OPL 257 while Conoil acquires OML 136

According to a statement released on Wednesday, the TotalEnergies asset swap with Conoil Producing Limited has set the stage for a major shift in Nigeria’s offshore energy landscape, marking a significant and positively viewed restructuring of two important deepwater assets.

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TotalEnergies confirmed that it has signed definitive agreements with Conoil for the exchange of interests in Oil Prospecting Licence 257 and Oil Mining Lease 136.

The energy giant will acquire an additional 50 per cent operated stake in OPL 257 from Conoil, while transferring its 40 per cent participating interest in OML 136 to Conoil.

With the completion of this transaction, TotalEnergies’ holding in OPL 257 will rise from 40 per cent to an impressive 90 per cent, leaving Conoil with a residual 10 per cent stake.

The company described the move as a powerful step that aligns with its strategy of deepening value in offshore assets.

OPL 257 spans approximately 370 square kilometres and lies about 150 kilometres off the Nigerian coastline.

The block is strategically positioned next to PPL 261, where TotalEnergies and its partners discovered the Egina South field in 2005.

The field extends into OPL 257, and an appraisal well is scheduled for 2026. The development is expected to be executed as a tie-back to the Egina FPSO, located around 30 kilometres away, a plan regarded within the industry as highly efficient and cost-effective.

Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, described the asset swap as a reinforcement of long-standing collaboration with Conoil.

He noted that the agreement would enable the company to advance the appraisal of the Egina South discovery, which he called an attractive and profitable tie-back opportunity.

He added that the move “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,” a statement that highlights the firm’s ongoing commitment to disciplined, high-value development.

Completion of the transaction remains subject to regulatory approvals and customary closing conditions.

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Industry analysts say the TotalEnergies Asset Swap could provide renewed momentum for offshore exploration activities and strengthen Nigeria’s position within the global deepwater energy space.