TotalEnergies’ Strategic Shift
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TotalEnergies (NYSE:TTE) is considering divesting its stake in a major Nigerian onshore oil joint venture, as announced by CEO Patrick Pouyanne during the company’s annual results presentation on Thursday.
Environmental Challenges
The Shell Petroleum Development Company of Nigeria, in which TotalEnergies (TTE) holds a 10% stake, has faced persistent issues with oil spills due to theft, sabotage, and operational difficulties. These challenges have resulted in substantial repair costs and numerous legal disputes.
Sustainability Concerns
“Fundamentally, it’s because producing this oil in the Niger Delta is not in line with our [Health, Security, and Environmental] policies, it’s a real difficulty,” the CEO stated, according to Reuters. This decision aligns with TotalEnergies’ commitment to sustainable practices and responsible environmental stewardship.
Industry-wide Exodus
TotalEnergies (TTE) joins a growing list of international oil companies seeking to withdraw from Nigeria’s onshore sector. Shell recently announced its agreement to sell its 30% stake in SPDC to a consortium of five companies for up to $2.4 billion.
Offshore Expansion
Despite its withdrawal from onshore operations, the French energy firm remains a significant player in Nigeria’s offshore fields. Earlier in the week, TotalEnergies revealed the commencement of production at the offshore Akpo West oilfield.
