Total sells stake in Nigerian onshore OML 29 for $569m

French energy firm Total has sold its interest in Nigerian onshore Oil Mining Lease (OML) 29 to Aiteo Eastern E&P for $569m.

The divestment brings proceeds to more than $1bn including the recent OML 24 and OML 18 stake sales.

Total has sold stakes in 11 onshore Nigerian blocks to local firms since 2010.

The company said the divestments are in line with the Federal Government of Nigeria’s plan of developing local firms in the sector.

Total chief financial officer Patrick de La Chevardière said: "The sale of these non-operated onshore blocks in Nigeria is yet another example of our strategy of dynamic portfolio management, achieved at attractive valuations.

"These transactions also reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments, such as the Egina project."

The Group’s production in Nigeria was 257,000 barrels of oil equivalent per day (boe/d) in 2014.

Total owns a 10% interest in various onshore blocks in Nigeria through the Shell Petroleum Development Company (SPDC) joint venture.

The Nigerian National Petroleum Corporation, SPDC and Nigerian Agip Oil Company hold 55%, 30% and 5% stakes respectively.

Total’s onshore production comes from OML 58, which it also operates as part of its JV with NNPC.

A project is underway to increase the lease’s natural gas and condensate production capacity to supply the domestic market.

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Image: Total headquarter building in la Défense near Paris, France. Photo: Courtesy of Tangopaso (talk))/Wikipedia.