The Nigerian Upstream Petroleum Regulatory Commission has endorsed a $510 million transaction allowing TotalEnergies to offload its 12.5 percent stake in Oil Mining Lease 118 to affiliates of Shell and Eni, signaling a fresh pivot in the sector's asset reshuffle just days after scrapping a prior deal with Chappal Energies.

Under the sales agreement, TotalEnergies will hand over 10 percent to Shell Nigeria Exploration and Production Company for $408 million and the remaining 2.5 percent to Nigerian Agip Exploration for $102 million, pending final ministerial nod as required by the Petroleum Industry Act of 2021.

Regulators, after rigorous checks on the buyers' finances and expertise, affirmed their readiness to uphold production while absorbing TotalEnergies' decommissioning duties and community pledges, shielding the state from future costs.

The approval mandates consent fees—five percent from Shell and two percent from Agip—on the deal's value, underscoring stricter oversight amid international oil firms' rush to shed onshore and shallow-water holdings for deeper-water focus and risk cuts.

This follows the October 2024 reversal of TotalEnergies' sale to Chappal, blamed on incomplete handover, highlighting regulators' push for seamless transitions in Nigeria's vital crude arena.

As majors like Shell and Eni bolster their footprints in OML 118—a key Bonga field hub—the move could stabilize output and local commitments, though analysts watch for broader ripples in divestment trends shaping Africa's top oil exporter.