TotalEnergies has moved to tighten its grip on deepwater oil in Nigeria, signing a swap deal with Conoil Producing to raise its stake in offshore block OPL257. The French major will increase its interest from 40% to 90%, while giving Conoil its 40% share in block OML136.
1. A bigger stake in a key block
TotalEnergies said the deal gives it more control of one of its most important deepwater areas. OPL257 sits next to PPL 261, where the firm found the Egina South field about 20 years ago. The reservoir crosses into OPL257, so control of the block helps the firm plan the next phase of work.
“This builds on a long partnership and gives us clear ground to move forward,” said Mike Sangster, the company’s Senior Vice-President for Africa.
2. A push toward low-cost tie-backs
The company plans to drill a new test well in 2026 to check how much oil can be tied back to the nearby Egina FPSO, about 30 km away. This would allow the firm to use old lines and cut the cost of new build-outs.
Tie-backs have become key in Nigeria as companies face low spending, security risks, and long delays. Using old systems helps lower risks, shorten project time, and keep output steady.
3. A wider deepwater trend in Nigeria
The move fits a broader shift in Nigeria. Many international oil firms are selling shallow-water and onshore fields and putting more money into deepwater blocks, where crime and pipeline theft are lower. TotalEnergies has kept one of the most stable footprints in the country. It continues to invest in both new and old offshore sites even as some peers scale back.
4. What it means for Nigeria’s energy future
TotalEnergies produced 209,000 boe/d in 2024 across oil, gas, and marketing. It also runs one of Nigeria’s largest fuel networks and has long worked with communities. The new deal still needs regulatory approval. Once cleared, the firm will gain full control to push new growth around the Egina hub.
This step could help Nigeria keep deepwater output stable at a time when the country is fighting to lift oil supply and rebuild investor trust.
