The Nigerian National Petroleum Company Limited (NNPCL) has secured a significant victory against TotalEnergies EP Nigeria Limited in a long-running arbitration, with a tribunal on November 19, 2025, ordering the oil major to pay $285.2 million for excess shared oil.
The payment is related to a dispute over the Amenam/Kpono Carry Agreement dated June 7, 2000, which centers on NNPCL’s right to terminate the deal and TotalEnergies’ subsequent oil lifting rights.
The arbitration, which began in 2015, focused on whether TotalEnergies had the right to continue lifting oil after NNPCL had fully repaid the associated costs
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 ₦112,500,000, to be settled within 14 days.
Following the award, 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.
