Total sells 20% in Nigerian project to Sinopec for $2.5 billionStaff writer ▼ | November 19, 2012
Total, a French energy company, has finalized the agreement to sell its 20% contractor interest in OML 138 block to a wholly owned subsidiary of China Petrochemical Corporation (Sinopec) for $2.5 billion in cash.Total, a French energy company, has finalized the agreement to sell its 20% contractor interest in OML 138 block to a wholly owned subsidiary of China Petrochemical Corporation (Sinopec) for $2.5 billion in cash.
The OML 138 block contains the Usan field which started production in February 2012. The Nigerian National Petroleum Corporation (NNPC) is the OML 138 concession holder. Other partners include Chevron Petroleum Nigeria (30%), Esso E&P Nigeria Offshore East (30%) and Nexen Petroleum Nigeria (20%).
Total is in Nigeria for the last 50 year. The Group’s production in Nigeria was at 287,000 barrels of oil equivalent per day in 2011. Deepwater developments are one of Total’s main growth avenues in Nigeria, where the Group operates the Akpo field in OML 130 and is also preparing to develop the Egina field in the same lease. Offshore production also comes from OMLs 99, 100 and 102, which are operated by the Group as part of a joint-venture with NNPC. The main fields in these leases are Amenam-Kpono, Edikan and Ofon.
French company recently commenced the second phase of the Ofon development which is mostly intended to recover natural gas reserves. Ofon phase 2 is a step forward in the Group’s plan to reduce its gas flaring and greenhouse gas emissions.
Total’s onshore production comes from OML 58, which it also operates as part of its joint-venture with NNPC. The company has significant equity production in Nigeria from its interests in non-operated ventures, particularly the NNPC/SPDC joint venture (10%) and SNEPCO operated PSC (12.5%), which includes the Bonga field. Total also has a 15% interest in Nigeria LNG, whose liquefied natural gas production capacity was increased to 21.9 million metric tons per year when Train 6 was brought on stream in late 2007. ■