TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement (SPA) with Vaaris Resources JV Co. Ltd to divest its 10% participating interest in the Renaissance Africa/NNPC/ENI/TOTAL Joint Venture (formerly SPDC JV).
The transaction marks a major shift in Nigeria’s oil and gas upstream landscape, accelerating the trend of international oil companies (IOCs) exiting onshore assets in favor of indigenous operators.
The 18 oil mining leases (OMLs) covered under the deal span onshore and shallow water blocks in Nigeria’s eastern, central, and western Niger Delta, with a production history that dates back decades.
Deal Terms: Oil Interest Sold, Gas Rights Retained
TotalEnergies will sell its 10% stake in 15 oil-producing licences, which contributed approximately 16,000 barrels of oil equivalent per day in 2025 to its net share.
It will also transfer a 10% interest in 3 gas-focused licences—OML 23, OML 28, and OML 77—to Vaaris, while retaining full economic interest in those gas assets, which supply around 50% of Nigeria LNG’s gas feedstock.
The SPA was signed on behalf of Vaaris by Tein George, Chairman of the consortium with closing pending regulatory approvals. This deal is part of TotalEnergies’ strategy to exit high-cost onshore oil operations while expanding investment in gas, LNG, and offshore production.
Who is Vaaris Resources? A Rising Nigerian Oil Consortium
Vaaris Resources JV Co. Ltd (VRJC) is a Nigerian Special Purpose Vehicle formed in late 2025. The group is composed of three indigenous marginal field operators and three oilfield service companies, bringing together financial capacity and upstream operating experience. This new energy consortium is poised to become a significant participant in Nigeria’s domestic oil industry.
By acquiring TotalEnergies’ position in the Renaissance JV—which also includes NNPC Ltd (55%), Renaissance Africa Energy (30%, operator), and Agip Energy & Natural Resources (5%)—Vaaris is stepping into a high-stakes role in Nigeria’s energy transition.
TotalEnergies Reshapes Nigerian Portfolio: From Onshore Oil to LNG Growth
This is not TotalEnergies’ first Nigerian asset divestment. The company had previously agreed to sell the same stake to Chappal Energies in 2024, but that deal collapsed due to financing and regulatory constraints. In November 2025, TotalEnergies successfully sold its 12.5% interest in Bonga deepwater field (OML 118) to Shell and Eni for $510 million.
The company has pivoted toward low-carbon growth and gas monetization. It remains a leading player in Nigeria LNG and has invested in projects like Ubeta, aligned with its broader global energy transition agenda.
Regulatory Climate Improving: Tinubu’s Energy Reforms in Action
Nigeria has historically suffered from divestment delays due to red tape, opaque approval processes, and financial scrutiny of prospective buyers. However, under the administration of President Bola Tinubu, Nigeria’s oil and gas policy is undergoing reform.
In 2024, the president signed executive orders to shorten approval cycles, fast-track investments, and support gas infrastructure development. Industry analysts say the Vaaris transaction is a litmus test for these reforms.
If approved swiftly, the deal could build confidence that Nigeria is now open to faster, more transparent investment flows, particularly in the upstream oil and gas space.
Why This Matters: Strengthening Indigenous Upstream Operators in Nigeria
This divestment adds to the momentum of local content growth in Nigeria. Renaissance Africa Energy—formed in 2025 from a consortium of five Nigerian firms—already operates the JV and has increased production by over 40% since acquiring Shell’s stake.
With Vaaris coming in as a 10% equity holder, the joint venture will now be almost entirely Nigerian-controlled. The focus now shifts to scaling production, minimizing downtime, and injecting fresh capital into ageing but high-potential assets.
This aligns with government targets to boost crude oil output to over 2 million barrels per day, improve energy security, and revitalize host communities through local ownership.
Conclusion: A Strategic Exit, a Local Opportunity
TotalEnergies’ sale of its 10% stake in the Renaissance JV to Vaaris marks a pivotal moment for Nigeria’s upstream oil and gas sector. It is a clear signal that the era of Nigerian ownership and operational control is accelerating.
If successfully closed and backed by reinvestment from Vaaris and Renaissance, the deal could revitalize underperforming fields and strengthen Nigeria’s position in both oil exports and domestic gas supply.
With regulatory momentum improving and indigenous operators stepping up, this transaction could serve as a model for future divestments in Africa’s biggest oil-producing country.
