NUPRC Explains Withdrawal Of Approval For TotalEnergies-Chappal Transaction

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued an official clarification on the divestment deal between TotalEnergies and Chappal Energies, confirming that ministerial consent originally granted for the transaction has since been withdrawn.

In a statement signed by its Head of Media and Strategic Communications, Eniola Akinkuotu, the Commission said the explanation was necessary following growing media enquiries about the fate of the transaction.

The deal dates back to October 28, 2024, when the Commission conveyed ministerial consent for the transfer of TotalEnergies’ 10 percent participating interest in the Nigerian National Petroleum Company Limited (NNPCL) and Shell Petroleum Development Company (SPDC) joint venture.

The approval excluded Oil Mining Leases (OMLs) 23, 28 and 77.

The divestment covered several other assets, including OMLs 20, 21, 22, 25, 27, 31, 32, 33, 35, 36, 43, 45, 46, 74, and 79. The stake was to be acquired by Telema Energies Nigeria Limited, a subsidiary of Chappal Energies.

At the time, the approval was hailed as a boost for indigenous participation in Nigeria’s oil and gas sector, which has seen growing interest from local firms as international oil companies streamline their portfolios.

Despite the approval, NUPRC disclosed that Chappal Energies failed to consummate the deal months after the consent was granted.

The regulator added that even after granting extensions, the company was unable to conclude the transaction.

“Based on this, the ministerial consent for the deal was withdrawn on May 29, 2025,” the statement read.

The Commission, however, stressed that the withdrawal does not permanently close the door on future asset sales between the parties or other interested investors.

It explained that any divestment in the sector remains possible so long as it is consistent with existing laws and regulatory requirements.

“The withdrawal of a ministerial consent does not in any way rule out the possibility of a future divestment by the interested parties, provided such an asset sale is in line with extant laws,” the Commission clarified.

NUPRC also reaffirmed its commitment to fostering an enabling investment climate in Nigeria’s petroleum sector, citing its statutory role under Section 6(h) of the Petroleum Industry Act (PIA).

The clarification comes amid a wave of divestment moves by international oil companies in Nigeria.

Over the past decade, firms like Shell, ExxonMobil, and Chevron have sought to sell onshore and shallow-water assets while focusing on deepwater and gas projects.

Analysts say while divestments create opportunities for indigenous companies to expand, many face hurdles such as financing difficulties and operational capacity gaps. The collapse of the TotalEnergies–Chappal deal highlights these challenges.

For stakeholders, NUPRC’s intervention is seen as a step towards transparency and reassurance that regulatory processes will continue to be guided by fairness and due process.