France’s energy giant TotalEnergies is bringing South Atlantic Petroleum Limited (SAPETRO) on board as a partner in the offshore block OPL257, setting the stage for an upcoming appraisal campaign that could enable the tie-in of an undeveloped field directly into an existing floating production, storage, and offloading (FPSO) infrastructure for low-cost development.
TotalEnergies has signed a farm-out agreement to sell to SAPETRO a 40% participating interest in Nigeria’s offshore block OPL257, which will see it retail a 50% operated interest in the asset, while SAPETRO and Conoil will hold the remaining 40% and 10% stakes, respectively.
Located 150 kilometers offshore Nigeria, OPL257 is adjacent to PPL261, where TotalEnergies (24%) and its partners, including SAPETRO, discovered the Egina South field in 2005, which straddles both blocks. The completion of the transaction is subject to customary conditions, including regulatory approvals.
The French player explains that an appraisal campaign on the OPL257 side of the field will be undertaken in the coming months to support the potential development of Egina South as a tie-back to the FPSO Egina, situated approximately 30 kilometers away.
"TotalEnergies is pleased to have SAPETRO as a partner in OPL257 as well as in the adjacent PPL261 block. Consolidating our long-term partnership paves the way for a quick appraisal campaign and subsequent development of Egina South in the success case. For TotalEnergies, this is consistent with our strategy to develop low-cost, low-emission resources while leveraging existing facilities."