TotalEnergies Consolidates Deepwater Power with 90% Operated Stake in OPL 257 After Asset Swap with Conoil

In a major strategic move that reshapes the offshore oil landscape, TotalEnergies today, Thursday, November 20, 2025, announced an asset swap deal with indigenous player Conoil Producing Limited, aimed at consolidating the French energy major’s position in Nigeria’s deepwater domain.

Under the terms of the agreement, TotalEnergies will acquire an additional 50% operated interest in the exploration block OPL 257 from Conoil. In exchange, Conoil will take over TotalEnergies’ 40% participating interest in the offshore block OML 136.

The transaction increases TotalEnergies’ holding in OPL 257 from 40% to a dominant 90% operated stake, leaving Conoil with a 10% residual interest.

Leveraging Existing Infrastructure

The core of the deal for TotalEnergies is the consolidation of ownership in OPL 257, which sits adjacent to the block containing the Egina South discovery. Having secured nearly full control of the block, the company has announced plans to drill an appraisal well in 2026.

Mike Sangster, Senior Vice-President Africa, Exploration & Production at TotalEnergies, confirmed that the move aligns perfectly with their strategy to reduce costs and accelerate timelines.

“This transaction… will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO,” Sangster said. “This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources.”

The Egina FPSO, one of Nigeria’s largest deepwater production facilities, is located approximately 30 kilometers from OPL 257, making the proposed development a cost-efficient strategy favored by international majors globally.

For Conoil, the acquisition of the 40% stake in OML 136 provides an opportunity to significantly increase its footprint and focus on assets that align with its growth strategy. The completion of the deal remains subject to the final nod from Nigerian regulatory authorities.