The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has withdrawn its approval for TotalEnergies’ planned $860 million sale of its stake in Shell’s onshore joint venture to Chappal Energies.

The regulator explained that both parties failed to meet key conditions, including settlement of regulatory fees, funding for environmental liabilities, and Chappal’s ability to raise the required financing.

With the consent now void, TotalEnergies will retain its interest in the joint venture instead of exiting as earlier planned.

This decision highlights the increasing scrutiny on divestment deals in Nigeria’s oil and gas sector and may slow down similar transactions in the industry.