TotalEnergies now stands at the centre of Nigeria’s onshore oil transition.
At the same time, Nigeria’s regulators are actively reshaping the future of one of the country’s oldest onshore oil assets.
TotalEnergies Revival After Regulatory Setback
On Wednesday, TotalEnergies announced plans to sell its 10% stake in the Renaissance Joint Venture to Vaaris Resources.
Previously, the industry knew the venture as Shell Petroleum Development Company (SPDC).
However, the proposed sale follows the collapse of an earlier $860 million deal after regulators intervened.
In 2025, authorities blocked the sale to Chappal Energies and raised concerns about the buyer’s financial capacity.
As a result, the decision delayed TotalEnergies’ plan to exit ageing onshore oil assets and cut operational risks.
Under the new agreement, Vaaris Resources will acquire the 10% non-operated stake.
Notably, Vaaris Resources operates as a relatively new player in Nigeria’s upstream oil and gas sector.
According to corporate records, Vaaris Resources JV Co. Limited incorporated in Nigeria on December 22, 2025.
Meanwhile, TotalEnergies withheld details on the deal value, ownership structure and funding arrangements.
As expected, Nigerian regulators must approve the sale before completion.
Therefore, regulators will closely examine Vaaris’ financial strength and technical capability.
Gas Strategy Remains Intact
In addition, the transaction covers interests in three oil and gas licences supplying Nigeria LNG.
However, TotalEnergies will retain full economic interest in those gas-focused assets.
In line with its strategy, the company continues to position natural gas as a transition fuel.
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Indigenous Ownership Gathers Pace
Over the years, SPDC has faced crude theft, pipeline vandalism and ageing infrastructure.
Consequently, these challenges have disrupted production, damaged the environment and triggered legal disputes.
Because of this, international oil companies increasingly view Nigeria’s onshore sector as high-risk.
Against this backdrop, TotalEnergies’ exit reflects a broader shift away from onshore oil assets.
Earlier, Shell sold its 30% SPDC stake to a largely indigenous consortium.
That transaction reached a value of up to $2.4 billion.
Together, these moves are reshaping Nigeria’s onshore oil and gas landscape.
As a result, local and regional firms are taking control of assets once held by multinationals.
Currently, NNPC, Shell’s successor group, TotalEnergies and Eni own the Renaissance Joint Venture.
NNPC controls 55%, while Eni holds 5%.
If regulators approve the deal, Vaaris Resources will replace TotalEnergies as a minority partner.
Ultimately, the deal tests Nigeria’s drive for local ownership and financial resilience.
Meanwhile, security, environmental and community risks continue to challenge the sector.
