(MENAFN) Nigerian oversight bodies have annulled the authorization granted to TotalEnergies to divest its minority interest in an onshore petroleum venture, citing an alleged failure by the involved parties to fulfill financial obligations necessary to conclude the transaction.

The Upstream Petroleum Regulatory Commission (NUPRC) of the West African nation had previously issued conditional consent for the $860 million deal in October.

Nevertheless, a news agency quoted spokesperson Eniola Akinkuoto on Tuesday stating that the French energy giant and Chappal Energies, the Mauritius-based purchaser, did not meet stringent deadlines related to financial commitments, even after several extensions were allowed.

The Sale and Purchase Agreement, finalized in July 2024, covered the transfer of TotalEnergies’ 10% holding in the Shell Petroleum Development Company of Nigeria (SPDC) joint venture.

This consortium also comprises the state-owned Nigerian National Petroleum Company (55%), Shell as operator (30%), and Eni’s local subsidiary NAOC (5%).

The partnership manages 18 licenses in the Niger Delta, an area long troubled by crude spills, pipeline damage, and ongoing legal battles concerning environmental harm.

TotalEnergies had presented the divestiture as part of its broader plan to retreat from Nigeria’s onshore petroleum industry.

In its 2023 statement, the firm explained that the withdrawal would enable it to prioritize offshore oil operations and natural gas resources, which account for 40% of Nigeria LNG’s supply.

The company has not yet issued a response regarding the cancellation of regulatory approval.

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