AfriPulse
A tribunal on November 19, 2025, handed a major blow to TotalEnergies EP Nigeria Limited, ordering the oil giant to pay the Nigerian National Petroleum Company Limited (NNPCL) $285.2m for excess shared oil, plus legal costs, in a long-running arbitration.
The dispute, which began in 2015, centers on the Amenam/Kpono Carry Agreement dated June 7, 2000, and focuses on NNPCL’s right to terminate the deal and TotalEnergies’ oil lifting rights.
Sources familiar with the transaction told THE WHISTLER that the NNPCL had fully repaid the Carry Capital Cost of $697.2m by December 2007 and settled the agreed interest of $281m.
Findings revealed that the agreement covered 492 million barrels of shared oil at an assumed price of $17 per barrel, and having completed repayment, TotalEnergies had no right to ongoing oil lifting, prompting NNPCL to file a counterclaim to recover the overlift.
TotalEnergies was said to have countered that the Carry Agreement functioned like a Production Sharing Contract, where it bore exploration and production risks in exchange for pre-agreed recovery of shared oil.
Rejecting this argument, the tribunal directed TotalEnergies to pay NNPCL $285.2m, plus legal costs of $343,191.88 and N112,500,000, to be settled within 14 days.
Following the award, THE WHISTLER understands that TotalEnergies filed a challenge in the Federal High Court, while NNPCL moved to secure recognition and enforcement of the ruling, indicating the legal battle may continue.
The decision is seen as a major win for NNPCL, reinforcing its rights under shared oil agreements and sending a strong message to international oil companies about contractual obligations in Nigeria’s oil sector.
Source: TheWhistler | Read the Full Story…
