TotalEnergies and ABC Orjiako’s Zebbra reach understanding on Nigeria’s OPL 248 as Chevron seeks 40% stake

TotalEnergies and Nigerian junior Zebbra Energy, led by Ambrosie Bryant Chukwueloka Orjiako, say they have reached an amicable understanding in a dispute over offshore block OPL 248, a licence fight that has shadowed new deals around the acreage.

People familiar with the talks said the settlement framework clears the way for Zebbra to step back from its challenge while regulators review fresh ownership changes in the two permits carved out of the block. TotalEnergies did not comment publicly on the discussions.

Zebbra, controlled by Orjiako, filed an appeal on Sept. 26 after the Ministry of Petroleum and the Nigerian Upstream Petroleum Regulatory Commission revoked its rights to OPL 248. The appeal followed a June 30 ruling by the Federal High Court in Abuja that went against the company.

OPL 248 was split into two petroleum prospecting licences, PPL 2000 and PPL 2001. Nigerian authorities awarded the permits in December 2024 to TotalEnergies and Sapetro, a firm owned by former defense minister Theophilus Yakubu Danjuma. The block lies offshore Nigeria and is seen as a promising deepwater play, though development depends on licences and partner approvals.

Tensions rose again after a production sharing agreement signed Sept. 1 among the Nigerian National Petroleum Co., TotalEnergies and Sapetro. Zebbra’s lawyers argued the pact strengthened the state and its partners’ position before the appeal could be heard. The company retained the law firm T.P. Tochukwu and Co. and had not formally withdrawn its complaint by mid December, according to people close to the case.

A separate transaction has added urgency. Chevron, through its Star Deep Water Petroleum unit, signed an agreement dated Dec. 1 to buy 40% stakes in both PPL 2000 and PPL 2001 from TotalEnergies, the people said. The request for approval was forwarded to the upstream regulator, which must consent before any transfer takes effect.

Industry analysts say the episode highlights the legal and regulatory risk that still surrounds Nigeria’s deepwater assets even as companies chase new production. Investors have pushed for clearer timelines on licence awards, renewals and disputes, warning that court challenges can delay financing and drilling.

Officials at the petroleum ministry and the regulator have not published details of the understanding between TotalEnergies and Zebbra, and key terms were not disclosed. The next steps hinge on whether Zebbra files a notice to discontinue its appeal and whether the regulator signs off on the Chevron purchase. (Billionaires Africa)