TotalEnergies and Conoil Finalise Strategic Asset Swap Agreement in Offshore Nigeria

TotalEnergies and Conoil have entered into a major asset swap agreement involving key offshore oil blocks in Nigeria, marking one of the most significant restructuring moves in the country’s upstream petroleum sector in recent years. The deal, which industry stakeholders describe as a strategic exchange that aligns with both companies’ long-term operational goals, is expected to reshape their asset portfolios, boost production prospects and strengthen Nigeria’s offshore investment landscape.

Under the terms of the agreement, TotalEnergies will transfer ownership of specific interests in selected offshore blocks to Conoil, while Conoil will in return relinquish certain assets that complement TotalEnergies’ expanding deepwater portfolio. Although the companies have not released full financial details, sources in the industry indicate that the swap covers assets located in prolific offshore zones known for high reserves and substantial production potential. The structure of the agreement allows both firms to optimise their operations by focusing on assets that align with their technical capacity, investment strategy and long-term development plans.

TotalEnergies, one of Nigeria’s largest international oil companies, has in recent years intensified its focus on deepwater exploration and production, particularly as the global energy transition pushes companies to prioritise assets with lower carbon intensity and higher efficiency. The asset exchange aligns with this strategy, giving TotalEnergies increased exposure to fields that support its ongoing shift towards more sustainable and technologically advanced operations. The company has emphasised that Nigeria remains a critical market in its global portfolio, and the asset realignments are intended to enhance efficiency while unlocking additional value from offshore reserves.

For Conoil, one of the country’s leading indigenous oil and gas companies, the deal marks a significant opportunity to expand its footprint in the offshore space. Historically, Conoil has maintained a notable presence in onshore and shallow-water operations, but the asset swap provides an opening to strengthen its offshore capabilities. Industry observers say the assets acquired through the agreement position Conoil to scale its production capacity, improve its technological competitiveness and participate more robustly in the growth of Nigeria’s offshore petroleum industry. The company is expected to deploy both technical expertise and strategic partnerships to maximise the value of the newly acquired blocks.

The timing of the deal is significant as Nigeria continues to push for increased investment in its oil and gas sector. With production levels fluctuating due to operational disruptions, divestments and ageing infrastructure, the federal government has encouraged both local and international companies to engage in strategic partnerships that can enhance efficiency, unlock investment and modernise production systems. The asset swap between TotalEnergies and Conoil aligns with this broader national objective, as the optimisation of block ownership is expected to stimulate fresh capital investment, new drilling campaigns and improved productivity in the offshore sector.

Energy analysts have welcomed the agreement, noting that asset swaps are becoming more common in global oil markets as companies seek to rebalance portfolios and manage operational risks. Such transactions, they argue, allow companies to consolidate their strengths by focusing on assets that fit their long-term commercial plans. For TotalEnergies and Conoil, the swap creates an avenue for both companies to explore high-value opportunities without the uncertainties and delays that often accompany full acquisition processes. Analysts add that the deal may also signal an increase in indigenous participation in Nigeria’s offshore oil sector, a development that aligns with national content policies.

The offshore blocks involved in the swap are believed to have considerable untapped resources, and with the new arrangements, both companies are expected to initiate new exploration and development programmes. TotalEnergies, with its extensive deepwater expertise, is likely to accelerate development on the assets it gains, leveraging advanced drilling technologies and enhanced recovery techniques. Conoil, on the other hand, is expected to focus on stabilising operations, securing development financing and deploying new strategies to improve early production performance on its newly obtained assets.

The deal also has broader implications for Nigeria’s energy sector. By unlocking new operational opportunities, the transaction may contribute to increasing national crude output, enhancing revenue generation and supporting the country’s effort to meet production targets. Furthermore, successful implementation of the deal could attract additional interest from international and domestic investors seeking to participate in Nigeria’s offshore opportunities. Market watchers believe that the move will stimulate competition and collaboration in the sector, potentially leading to more asset transactions in the coming months.

Although the agreement represents a major step forward, both companies will need to navigate regulatory approvals and align the asset transfers with the provisions of the Petroleum Industry Act. The industry regulator is expected to conduct thorough evaluations to ensure compliance with environmental standards, operational guidelines and fiscal obligations. Once approvals are secured, the companies will formally commence work plans on the new assets.

 

In all, the TotalEnergies–Conoil asset swap marks an important milestone in the evolution of Nigeria’s offshore petroleum sector. With both companies gaining assets that better match their strategic direction, the deal is expected to spark renewed activity, drive investment and strengthen the efficiency of offshore production. Stakeholders anticipate that the agreement will not only reposition both firms for future growth but also contribute positively to Nigeria’s broader energy development goals.