Total (NYSE:TTE) announced today that it has finalized an agreement to sell its 20% stake in the OML 138 block containing Nigeria's Usan Field to a wholly owned subsidiary of China Petrochemical and Chemical Corp. (NYSE:SNP), aka Sinopec, for $2.5 billion. The deal requires the approval of Nigerian authorities.
Total is a minority partner in the Usan field, which began production in February. The Nigerian National Petroleum Corp. is the concession holder in OML 138, which contains the Usan field. Controlling interest in is shared by Chevron (NYSE:CVX) and Esso Nigeria, each with a 30% stake. Nexen Petroleum (NYSE: NXY) holds the remaining 20% interest.
According to a Total spokesman: "The transaction is aligned with Total's active portfolio management. Usan accounts for less than 10% of the Group's equity production in Nigeria. This sale of an asset operated from a minority position will allow us to focus our resources on the material growth opportunities in Total's portfolio."
Total retains an active role in Nigeria, particularly in offshore drilling enterprises, retaining several partnerships and joint ventures in the region. The Group’s production in Nigeria was at 287,000 barrels of oil equivalent per day in 2011.