Introduction
The third quarter of 2026 saw activity across Nigeria’s oil and gas value chain, from upstream asset sales and acquisitions to major project investments, capital raising and gas supply agreements. Notable developments included Seplat Energy’s proposed US$281.6 million sale of a 10% working interest to NNPC, the US$1.1 billion Ima gas project reaching final investment decision, Dangote Petroleum Refinery’s US$2.5 billion private placement and the landmark$1.6 billion initial public offering . The quarter also saw progress on the proposed acquisition of Powergas by Ardova and Diadem Energy, new agreements to support domestic gas supply, and continued development of major pipeline and deepwater projects. This report brings together the key transactions and announcements made between 1 July and 30 September 2026, highlighting the companies involved, disclosed deal values, financing arrangements and advisers behind the deals.
M&A and Divestments
Seplat agrees US$281.6m sale of 10% JV interest to NNPC
Seplat Energy Plc signed a binding agreement with NNPC Limited for the sale of a 10% working interest in the NNPC/SEPNU joint venture for approximately US$281.6 million, increasing NNPC’s interest in the venture from 60% to 70% upon completion.
Announced on 30 July 2026, the transaction was executed through Seplat Energy Offshore Limited and Seplat Energy Producing Nigeria Unlimited (SEPNU), Seplat’s wholly owned subsidiary. It covers assets held within the joint venture and reduces SEPNU’s working interest from 40% to 30%. SEPNU will retain operatorship, while Seplat will continue to own the subsidiary in full. The agreement carried an effective date of 1 April 2026, with completion expected in the second half of 2026, subject to regulatory approvals and other customary conditions.
Seplat indicated that it would allocate approximately half of the proceeds to debt reduction and half to shareholder returns. The company also outlined a proposed transaction dividend of approximately US$140 million, subject to completion, and plans to repay the remaining US$100 million outstanding under its Advanced Payment Facility. The disposal was expected to reduce Seplat’s 2030 net working-interest production target from 200,000 barrels of oil equivalent per day to 170,000 boepd.
Ardova and Diadem agree to acquire Powergas in CNG expansion
Ardova Plc and Diadem Energy agreed to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited from Impala Energy Holdings, a portfolio company of A.P. Møller Capital, in a transaction announced in September 2026. The acquisition value was not disclosed. Powergas produces and distributes compressed natural gas (CNG) to industrial and commercial customers, including through its Ebedei flare gas monetisation project in Delta State.
×
The acquisition will expand Ardova’s presence in Nigeria’s gas value chain, combining its distribution network with Powergas’ CNG infrastructure. A.P. Møller Capital’s exit follows its investment in Powergas through Impala in 2019.
Citi advised the sellers financially, while Norton Rose Fulbright and Templars acted as legal advisers. On the acquisition side, Standard Bank and FirstCap provided financial advice, with Bloomfield LP and Charis & Mettle acting as legal advisers. Completion remained subject to regulatory approvals and other customary conditions.
Project investments, development and exploration
TotalEnergies and AMNI take FID on US$1.1bn Ima gas project
TotalEnergies EP Nigeria and AMNI International Petroleum Development Company reached a Final Investment Decision (FID) on 23 September 2026 for the Ima gas development across OML 112 and OML 117, offshore Nigeria, unlocking a major investment in non-associated gas production. The project has an estimated development cost of US$1.108 billion and is expected to produce 350 million standard cubic feet of gas per day at plateau, with first gas targeted for 2028. TotalEnergies operates the project with a 40% interest, while AMNI holds 60%.
The development will comprise a single offshore platform connected to Nigeria LNG by a 22-kilometre pipeline. At plateau, the field is expected to supply approximately 30% of the feed gas required for NLNG’s Train 7 expansion, which will increase the plant’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes.
The project secured more than US$1 billion in financing from Zenith Bank, Access Bank, United Bank for Africa, Guaranty Trust Bank, Standard Bank, Standard Chartered Bank and First Abu Dhabi Bank. The financing was structured around a receivables sale arrangement linked to a 15-year gas sales agreement with NLNG. Standard Chartered acted as financial adviser, global coordinator, lead arranger and bookrunner. Parsons and Banwo & Ighodalo advised the sponsors, with CMS advising on DIFC law; White & Case and G. Elias acted as international and Nigerian legal counsel to the lenders, respectively.
Renaissance announces significant oil discovery in OML 74
Renaissance Africa Energy Company Limited announced a significant oil discovery on 7 July 2026 following the successful drilling of the JK-004 exploration well in shallow waters offshore Nigeria. Preliminary evaluation indicated a hydrocarbon-bearing interval of approximately 1,000 feet across seven reservoirs, with initial logging and fluid analysis confirming light oil and favourable reservoir quality.
The discovery marked a milestone in Renaissance’s exploration programme since assuming operatorship of the assets in 2025. Renaissance operates OML 74 under a joint venture with NNPC Limited, which holds 55%, Renaissance with 30%, TotalEnergies with 10% and Agip Energy and Natural Resources with 5%.
NNPC and Shell-led consortium advance US$10bn Bonga South-West/Aparo project
NNPC Limited and the OML 118 contractor parties, comprising Shell Nigeria Exploration and Production Company, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited, executed addenda to the Production Sharing Contract and Dispute Settlement Agreement on 24 August 2026, advancing the Bonga South-West/Aparo deepwater development towards a Final Investment Decision (FID). The agreements gave effect to fiscal and commercial terms approved by the Federal Government to support the project.
The project is expected to attract between US$15 billion and US$21 billion over its life, with anticipated peak production of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day. The contractor parties also completed the Pre-FEED phase and identified a preferred contractor for the floating production, storage and offloading (FPSO) facility, subject to further approvals.
Gas supply and commercial agreements
NNPC signs gas network entry agreements with Chevron, AGPC and NEPL
NNPC Limited signed Network Entry Agreements with Chevron Nigeria Limited, ANOH Gas Processing Company (AGPC) and NNPC Exploration & Production Limited (NEPL) on 7 July 2026, migrating legacy gas interconnection arrangements to Nigeria’s Gas Transportation Network Code. The agreements are expected to enable the injection of up to 800 million standard cubic feet of gas per day into the domestic transportation network, supplying power plants, gas-based industries and industrial clusters.
The agreements establish the framework for gas producers to connect to and deliver gas through the regulated network, supporting more coordinated transportation and improved supply reliability. Chevron’s agreement with NNPC Gas Infrastructure Company specifically covers gas delivery from its Escravos Gas Plant into the Escravos–Lagos Pipeline System. External legal and financial advisers were not identified in the public disclosures reviewed.
Renaissance signs 16-year gas supply agreement with Indorama
Renaissance Africa Energy Company Limited signed a 16-year Gas Sale Agreement with Indorama Fertilizer FZE on 9 July 2026 for the supply of up to 60 million standard cubic feet of natural gas per day from the Assa North-Ohaji South (ANOH) gas development. The agreement provides firm gas supply to Indorama, a subsidiary of Indorama Eleme Petrochemicals Limited, to support fertiliser production and meet growing demand in Nigeria and regional markets.
Debt and equity financing
Dangote Refinery raises US$2.5bn in oversubscribed private placement
Dangote Petroleum Refinery and Petrochemicals FZE completed a US$2.5 billion private placement on 23 July 2026, issuing new equity to institutional investors, development finance institutions and other strategic investors. The transaction attracted subscriptions equivalent to 3.7 times the initial offer size, making it one of Africa’s largest disclosed primary equity private placements.
Africa Finance Corporation (AFC) led a group of strategic investors, while India Infra Buildco, a vehicle arranged through the African Export-Import Bank (Afreximbank), also participated. The proceeds were earmarked to support the refinery’s expansion plans and strengthen its capital structure ahead of its proposed public offering. The transaction marked the refinery’s first external equity raise beyond its existing shareholder base.
The private placement preceded the refinery’s planned IPO, which opened for subscription in September 2026.
Dangote Refinery opens ₦2.15tn ($1.63bn) IPO
Dangote Petroleum Refinery and Petrochemicals FZE opened its initial public offering (IPO) on 14 September 2026, seeking to raise approximately ₦2.15 trillion through an offer of 4.1 billion ordinary shares at ₦525 each. The offering represented a major capital-raising exercise for the 700,000-barrel-per-day refinery, with proceeds expected to support its expansion plans, including the proposed doubling of refining capacity to 1.4 million barrels per day by 2029. The IPO also marked the first public share offer by a Nigerian free zone enterprise.
Vetiva Advisory Services Limited served as lead adviser and lead issuing house, coordinating the transaction’s structuring and execution. FirstCap Limited and Chapel Hill Denham Advisory Limited were among the joint issuing houses involved in the offering, which brought together 25 issuing houses and 32 stockbroking firms.
On the legal side, Banwo & Ighodalo acted as solicitor to the issuer, while Olaniwun Ajayi LP and AELEX provided legal services to the transaction and offer. KPMG Professional Services served as reporting accountant, Deloitte & Touche acted as auditor, Coronation Registrars was appointed registrar, and Buraq Capital acted as Shariah adviser.
The offer was initially scheduled to close on October 13, with the closing subsequently extended to 27 October 2026.
NNPC advances US$4.5bn Project Gazelle 2 refinancing
The National Economic Council (NEC) approved a proposed US$4.5 billion Project Gazelle 2 financing structure on 3 August 2026 to refinance the outstanding balance of approximately US$1.5 billion under NNPC Limited’s original US$3.3 billion oil-backed pre-export financing facility and unlock an additional US$3 billion in liquidity. The revised arrangement was intended to support Nigeria’s external reserves and government financing priorities.
The proposed refinancing reduces the volume of crude oil committed to repayment from 90,000 barrels per day to approximately 78,750 bpd, a 12.5% reduction that would release an additional 11,250 bpd for other uses. However, the approval represented a step towards restructuring rather than confirmation that the new facility had been executed or drawn down.
NUPRC names 31 successful bidders for 37 oil and gas blocks
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced 31 successful bidders for 37 oil and gas blocks under Nigeria’s 2025 licensing round, following a commercial bid conference held in Abuja on 21 July 2026. The exercise attracted 200 bids from 143 companies for 37 of the 50 blocks offered, while the remaining 13 received no bids.
The blocks covered the Niger Delta onshore and shallow-water areas, deep offshore, and the Benin, Anambra and Chad basins and Benue Trough. Successful bidders included Asharami Deepwater Resources, Star Deep Water Petroleum, Network E&P, Dutchford E&P and Gupsco Energy. The participation extended to frontier basins, which the commission identified as a notable feature of the exercise.
Nigeria introduces tax remission framework for deep offshore oil and gas projects
President Bola Tinubu signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, on 6 August 2026, establishing a revised fiscal framework intended to attract investment into Nigeria’s deep offshore sector. Announced on 11 August, the framework aims to unlock up to US$50 billion in investment and advance major developments, including Shell’s proposed US$10 billion Bonga South West project.
The Order establishes eligibility criteria for production tax credits and other fiscal incentives for qualifying greenfield crude oil and non-associated gas developments under approved field development plans. It excludes brownfield optimisation activities, such as infill drilling, workovers and routine facility upgrades. The framework took effect on 6 August, with a deemed effective date of 28 February 2024 for specified provisions.
Q4 2026 Outlook
The final quarter of 2026 could see several of the transactions announced earlier in the year move towards completion, particularly in upstream oil and gas, where asset sales and acquisitions remain subject to regulatory approvals and other closing conditions.
Seplat Energy’s proposed sale of a 10% working interest in its joint venture assets to NNPC, TotalEnergies’ planned divestment of a 10% interest in the Renaissance joint venture to Vaaris Energy, and Ardova and Diadem Energy’s proposed acquisition of Powergas are among the transactions to watch. Their progress will provide a clearer picture of ownership changes and investment activity across Nigeria’s upstream and domestic gas markets.
Project development will also be in focus in Q4. UTM FLNG was targeting a final investment decision on its proposed US$3 billion floating LNG project in the fourth quarter, following its gas supply agreement with the NNPC/Seplat joint venture. Meanwhile, the Bonga South-West/Aparo project remained at the pre-FID stage, with further progress dependent on the outstanding development and approval processes.
In the downstream sector, Dangote Petroleum Refinery’s IPO will be a major capital markets event, with the offer period extending into October and listing preparations expected to follow. The outcome will be closely watched given the scale of the offering and its place in the refinery’s wider expansion plans.
0 Comments