Nigeria: Total Announces Sale Of Stake In Offshore OML 138

Total announced Monday that it has finalized an agreement to sell its 20% contractor interest in OML 138 block to a wholly owned subsidiary of China Petrochemical Corporation (Sinopec), for approximately US$2.5 billion in cash (subject to post-closing adjustments). The agreement is subject to approval by the Nigerian authorities.

The OML 138 block contains the Usan field which started production in February 2012.

“The transaction is aligned with Total’s active portfolio management. Usan accounts for less than 10% of the Group’s equity production in Nigeria. This sale of an asset operated from a minority position will allow us to focus our resources on the material growth opportunities in Total’s portfolio” said Yves-Louis Darricarrère, President Upstream at Total.

The Nigerian National Petroleum Corporation (NNPC) is the OML 138 concession holder. Other partners include Chevron Petroleum Nigeria Ltd. (30%), Esso E&P Nigeria (Offshore East) Ltd. (30%) and Nexen Petroleum Nigeria Ltd. (20%).