TotalEnergies and Conoil Producing Limited finalized an asset exchange agreement covering two deepwater blocks off the Nigerian coast, a transaction that strengthens operations in the eastern Niger Delta region close to Rivers State waters.
In the deal, TotalEnergies acquires a 50 percent operated interest in Oil Prospecting Licence 257 from Conoil Producing Limited. At the same time, Conoil takes full ownership of the 40 percent non-operated stake that TotalEnergies previously held in Oil Mining Lease 136.
Following completion, TotalEnergies boosts its position in OPL 257 from 40 percent to 90 percent, leaving Conoil with a 10 percent interest. The 370-square-kilometre block sits approximately 150 kilometres offshore in water depths that place it within the broader operational corridor regularly serviced by supply vessels and helicopters departing from Port Harcourt and Onne ports in Rivers State.
OPL 257 lies adjacent to PPL 261, where TotalEnergies and partners discovered the Egina South field in 2005. Hydrocarbon accumulations from that discovery extend into OPL 257, creating an attractive development opportunity.
An appraisal well is scheduled for 2026, with plans to tie any commercial volumes back to the Egina floating production storage and offloading vessel located roughly 30 kilometres away. Egina FPSO already processes crude that flows through pipelines and tanker routes visible from Rivers State coastal communities.
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Mike Sangster, Senior Vice-President for Africa Exploration and Production at TotalEnergies, highlighted the long-standing relationship with Conoil and emphasized that the swap allows the company to move forward with Egina South appraisal while optimizing existing infrastructure.
He added that the transaction supports the strategy of concentrating on low-cost, operated offshore oil and gas projects in Nigeria, many of which rely on logistics hubs, fabrication yards, and workforce based in Rivers State.
The agreement remains subject to approval by Nigerian upstream regulators and fulfilment of standard conditions precedent.
