South Atlantic Petroleum Limited (SAPETRO), the Nigerian oil company founded by Nigerian billionaire Theophilus “TY” Danjuma, has agreed to acquire a 40% participating interest in OPL 257, an offshore oil block operated by TotalEnergies in Nigeria.

The transaction strengthens SAPETRO’s deepwater portfolio and expands its exposure to a discovery with potential development opportunities.

The acquisition is being executed through a farm-out agreement with TotalEnergies. Upon completion, SAPETRO will hold 40% of OPL 257, while TotalEnergies retains a 50% interest and operatorship. Nigerian oil producer Conoil holds the remaining 10%. Completion remains subject to customary conditions, including regulatory approvals.

A major offshore acquisition

OPL 257 lies about 150 kilometers offshore Nigeria and contains part of the Egina South discovery, which extends across the block and neighboring PPL 261. The discovery was made in 2005 by partners in PPL 261, including TotalEnergies and SAPETRO, providing the foundation for a potential development spanning both assets.

The transaction builds on the companies’ existing partnership in PPL 261 and creates an opportunity to advance appraisal work across the neighboring blocks. The arrangement also gives SAPETRO a larger interest in a deepwater resource that could benefit from infrastructure already operating in Nigeria’s offshore oil industry.

Egina South moves toward appraisal

An appraisal campaign covering the OPL 257 portion of Egina South is planned for the coming months to establish the resource’s development potential. The partners are considering a subsea tie-back to the Egina floating production, storage and offloading vessel, located about 30 kilometers from the discovery.

Using the existing Egina FPSO could reduce the need for new infrastructure, lower development costs and limit emissions associated with bringing the discovery into production. The approach would allow the partners to assess whether additional offshore resources can be developed economically through Nigeria’s established deepwater production network.

Danjuma’s deepwater legacy

Founded in 1995 by Danjuma, a retired Nigerian Army lieutenant general, SAPETRO has built a portfolio of exploration and production assets across Africa. Its interests include a 15% stake in PMLs 2, 3 and 4 and PPL 261, which encompasses the Akpo and Egina fields, as well as interests in deepwater PPLs 2000 and 2001.

The company also holds a 20% interest in PPLs 2000 and 2001 in the Niger Delta basin alongside TotalEnergies and the Nigerian National Petroleum Co. Its exposure to Akpo and Egina places SAPETRO among the Nigerian independent producers with established interests in the country’s deepwater oil industry.

TY Danjuma commands one of Nigeria’s most resilient private fortunes. A former chief of army staff, he later served as defense minister under President Olusegun Obasanjo from 1999 to 2003. He broke into the global billionaire ranks after parlaying state service into lucrative ventures across West Africa.

Leadership shifts, strategy continues

Danjuma stepped down as SAPETRO chairman in 2023 after years leading the company. Senator Daisy Ehanire Danjuma succeeded him as board chairwoman, while the company continued pursuing opportunities to expand its exploration, development and production portfolio through partnerships with international oil companies.

Under Danjuma’s leadership, SAPETRO participated in the discovery of major Nigerian offshore fields, including Akpo, Egina and Preowei, and helped advance deepwater developments supported by floating production vessels. The Egina FPSO, one of the world’s largest, became a major milestone in Nigeria’s offshore oil production industry.