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TotalEnergies and Conoil have formalized a strategic asset swap agreement involving several offshore oil blocks in Nigeria, a move expected to strengthen their operational footprints and unlock new exploration value. The companies confirmed the deal following months of negotiations aimed at aligning their portfolios with long-term production and investment goals.
According to officials familiar with the transaction, the asset swap allows both companies to consolidate interests in blocks that better match their technical capabilities and commercial strategies. TotalEnergies is expected to take on blocks with deeper exploration prospects, while Conoil will assume positions in assets that support near-term production growth.
Industry analysts say the agreement reflects a growing trend of portfolio optimization in Nigeria’s upstream sector, where operators are repositioning to reduce costs, enhance profitability, and maximize reserves. The Petroleum Industry Act has also encouraged companies to restructure assets for clearer commercial pathways and faster decision-making.
The deal comes as Nigeria intensifies efforts to boost offshore investment amid declining output in mature fields. By exchanging assets rather than buying outright, both companies avoid heavy upfront costs while gaining more strategic control of their preferred blocks.
Energy economists note that the partnership could spur new drilling campaigns, attract service investments, and provide renewed confidence in Nigeria’s offshore potential. If successful, it may also encourage similar asset rationalisation agreements among other operators, thereby improving operational efficiency across the sector.
Neither company has disclosed the value of the swap or the full list of affected blocks, but further details are expected as regulatory approvals progress. Observers say the deal underscores the importance of collaboration in sustaining Nigeria’s role as a major upstream player in West Africa.