French energy major TotalEnergies has agreed to sell a 40% participating interest in Nigeria’s offshore oil block OPL257 to local energy company South Atlantic Petroleum (SAPETRO), strengthening a partnership aimed at advancing development of the Egina South oil field.
Under the farm-out agreement, TotalEnergies will retain a 50% operated stake in the block once the transaction is completed. SAPETRO will hold 40%, while Nigeria’s Conoil will retain the remaining 10%.
Located about 150 kilometres off Nigeria’s coast, OPL257 is adjacent to PPL261, where TotalEnergies and its partners discovered the Egina South field in 2005. The discovery extends across both blocks.
The companies plan to begin an appraisal campaign on the OPL257 section in the coming months to establish its development potential. If successful, the field could be connected to the existing Egina floating production, storage and offloading vessel, located about 30 kilometres away.
The arrangement would allow the partners to use existing offshore infrastructure rather than pursue an entirely standalone development, potentially reducing costs and shortening the route to production.
For TotalEnergies, the deal strengthens its relationship with SAPETRO while advancing its strategy of developing offshore resources through existing facilities. For Nigeria, successful development could support future oil production and investment in its deepwater energy sector.
However, the transaction remains subject to customary closing conditions, including regulatory approvals. The proposed field development will also depend on the outcome of the appraisal work.