TotalEnergies has reached an agreement with Conoil Producing Limited to execute an asset swap involving two offshore Nigerian blocks.

As part of the deal, TotalEnergies will acquire a 50% operated stake in Oil Prospecting Licence (OPL) 257 from Conoil, while Conoil will assume TotalEnergies’ 40% participating interest in Oil Mining Lease 136.

The energy company stated on Wednesday that following the transaction, TotalEnergies’ stake in OPL 257 will increase from 40 to 90 per cent, with Conoil retaining the remaining 10 per cent.

OPL 257 spans approximately 370 square kilometres and is located about 150 kilometres offshore from Nigeria.

The block is adjacent to PPL 261, where TotalEnergies and its partners discovered the Egina South field in 2005.

The Egina South field extends into OPL 257, with an appraisal well scheduled for 2026.

The discovery is expected to be developed as a tie-back to the Egina FPSO, situated about 30 kilometres away.

The statement quoted the Senior Vice-President Africa, Exploration & Production at TotalEnergies, Mike Sangster, as saying, “This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO.

“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria.”

The completion of the deal remains subject to regulatory approvals and other customary conditions.