TotalEnergies has broadened its offshore footprint in Nigeria after reaching an asset-swap agreement with Conoil Producing Limited. Under the deal, the French energy major will take a 50 percent operated stake in Oil Prospecting Lease (OPL) 257, while Conoil assumes TotalEnergies’ 40 percent interest in Oil Mining Lease (OML) 136.

Both blocks sit in deepwater acreage off Nigeria’s coast. Once the transaction is completed, TotalEnergies’ overall share in OPL 257 will rise to 90 percent, leaving Conoil with the remaining 10 percent.

OPL 257 contains an oil discovery first identified in 2005 in a structure that extends across block boundaries. TotalEnergies plans to carry out an appraisal well in 2026 during its next drilling campaign to determine the size and commercial potential of the resource. The block is located close to the Egina field, creating an opportunity for a potential tie-back to existing FPSO infrastructure if the development proceeds.

The move aligns with TotalEnergies’ broader strategy of consolidating operated positions in Nigeria’s deepwater and gas segments while accelerating projects that can add new production. The company has been active across the country’s upstream sector, taking a final investment decision on the Ubeta gas project in June 2024, starting up Akpo West earlier that year, and entering two offshore exploration blocks — PPL 2000 and PPL 2001 — in 2025.

TotalEnergies says the OPL 257 transaction underscores its long-term commitment to Nigeria and supports the government’s efforts to attract investment and boost output across the energy industry.