SAPETRO’s Deepwater Gambit: How Danjuma Is Strengthening His Footprint in Nigeria’s Oil Industry
By Matthew Eloyi
Theophilus Danjuma’s South Atlantic Petroleum is deepening its strategic partnership with TotalEnergies through a 40 per cent acquisition in a promising offshore oil block, reinforcing the Nigerian billionaire’s enduring influence in the country’s deepwater petroleum industry.
In Nigeria’s oil and gas industry, where access to deepwater assets requires enormous capital, technical expertise and long-term strategic partnerships, Theophilus Yakubu Danjuma has continued to demonstrate an uncommon ability to position his investments for enduring relevance.
More than three decades after establishing South Atlantic Petroleum Limited (SAPETRO), the Nigerian billionaire is making another significant move in the country’s offshore petroleum sector, strengthening his company’s relationship with French energy giant TotalEnergies SE through an agreement to acquire a 40 per cent participating interest in offshore oil block OPL257.
The transaction, signed on October 30, represents more than an ownership adjustment in an offshore petroleum asset. It underscores SAPETRO’s determination to consolidate its position in Nigeria’s deepwater oil industry while extending a partnership that has delivered some of the country’s most significant offshore discoveries.
Under the farm-out agreement, TotalEnergies will transfer 40 per cent of its participating interest in OPL257 to SAPETRO. Upon completion, subject to customary conditions, including regulatory approvals in Nigeria, TotalEnergies will retain a 50 per cent interest and continue as operator, while SAPETRO will become the second-largest partner with 40 per cent. Conoil, the oil company controlled by another Nigerian billionaire, Mike Adenuga, will retain its 10 per cent stake.
Although the financial terms of the transaction were not disclosed, its strategic implications are considerable, particularly given the exploration and development prospects associated with the asset.
Located approximately 150 kilometres offshore Nigeria, OPL257 contains part of the Egina South discovery, an oil field discovered in 2005 that extends across the block and neighbouring PPL261. The latter is already familiar territory for SAPETRO, which has an existing partnership with TotalEnergies in the asset.
The Egina South discovery is particularly significant because of its proximity to existing offshore production infrastructure. TotalEnergies intends to commence an appraisal campaign on the OPL257 portion of the field in the coming months to establish its commercial potential.
Should the appraisal results prove encouraging, the field could be developed through a tie-back arrangement to the Egina Floating Production, Storage and Offloading (FPSO) vessel, located approximately 30 kilometres away.
Such an approach could offer substantial economic advantages. Rather than constructing an entirely new production facility, the companies could utilise existing infrastructure to process crude oil from the discovery. This could reduce development costs, shorten project timelines and improve the commercial attractiveness of the asset.
For TotalEnergies, the transaction also reflects the importance of maintaining strategic partnerships with companies that possess extensive knowledge of Nigeria’s offshore petroleum landscape.
Mike Sangster, Senior Vice President for Exploration and Production in Africa at TotalEnergies, expressed satisfaction with the expanded partnership, noting that SAPETRO’s presence in both OPL257 and the adjoining PPL261 would create greater alignment among the partners.
According to the company, having the same partners across both sides of the discovery could facilitate the appraisal process and accelerate any eventual development.
The transaction also represents an interesting reversal of TotalEnergies’ earlier ownership strategy. In November 2025, the French energy company agreed to acquire an additional 50 per cent interest in OPL257 from Conoil, a move that would have increased its holding from 40 to 90 per cent, leaving Conoil with the remaining 10 per cent.
The latest agreement with SAPETRO, however, changes that ownership configuration considerably, giving Danjuma’s company a substantial 40 per cent interest while allowing TotalEnergies to retain operatorship.
A Partnership Built on Discovery
To appreciate the significance of SAPETRO’s latest acquisition, it is important to understand the history of its relationship with TotalEnergies and the company’s emergence as a major player in Nigeria’s deepwater petroleum industry.
Founded by Danjuma in 1995, SAPETRO entered Nigeria’s offshore exploration sector at a time when deepwater petroleum development was attracting growing international attention. In 1998, the company was awarded Oil Prospecting Licence 246 (OPL246), a deepwater asset situated approximately 120 to 160 kilometres south of Port Harcourt.
Working alongside Total, now TotalEnergies, as operator, SAPETRO participated in exploration activities that produced a series of important discoveries.
The Akpo field was discovered in 2000, followed by discoveries at Egina, Egina South and Preowei. These discoveries helped establish the commercial significance of Nigeria’s deepwater petroleum resources and strengthened SAPETRO’s position within the country’s offshore exploration industry.
One of the defining moments in the company’s history came in 2006 when it sold a 45 per cent working interest in the licence, which had by then been converted into Oil Mining Lease 130 (OML130), to China National Offshore Oil Corporation (CNOOC) for $2.27 billion in cash.
The transaction was one of the landmark deals in Nigeria’s oil industry and a defining milestone in Danjuma’s business journey. It also demonstrated the enormous value that could be unlocked through strategic participation in deepwater exploration and the successful commercialisation of petroleum assets.
Importantly, SAPETRO retained an interest in OML130, ensuring that the company continued to benefit from the asset’s production and long-term commercial prospects.
The Akpo field commenced production in 2009, while Egina began production in 2018, further strengthening the importance of the licence to Nigeria’s offshore petroleum economy.
In 2022, OML130 recorded production of approximately 282,000 barrels of oil equivalent per day, reflecting the scale of the asset’s contribution to the country’s petroleum output. The following year, Nigeria renewed the licence for another 20 years, providing a longer investment horizon for the partners.
The current ownership structure of OML130 comprises CNOOC with 45 per cent, TotalEnergies with 24 per cent, SAPETRO with 15 per cent and Prime 130 holding the remaining 16 per cent.
For SAPETRO, the continued participation in OML130, combined with the latest development involving OPL257, reinforces a business strategy built around long-term partnerships, offshore exploration and participation in commercially viable petroleum discoveries.
The Danjuma Factor
Behind SAPETRO’s growth is the entrepreneurial vision of Danjuma, whose career has spanned military leadership, public service, philanthropy and business.
At 87, Danjuma remains one of Nigeria’s most prominent business figures, with a legacy that extends beyond the petroleum industry.
He served as Nigeria’s Chief of Army Staff in the 1970s before returning to public service as Minister of Defence under former President Olusegun Obasanjo between 1999 and 2003.
His transition from military leadership into the business world produced a diversified investment profile, with SAPETRO becoming one of the most prominent expressions of his entrepreneurial ambition.
His influence also extends into philanthropy. In 2008, he established the TY Danjuma Foundation, an organisation dedicated to supporting development interventions, particularly in healthcare and education across Nigeria.
Through its programmes, the foundation has supported initiatives aimed at improving access to essential services and addressing development challenges in underserved communities.
Yet, in the petroleum sector, SAPETRO remains a central pillar of Danjuma’s business legacy. Its involvement in some of Nigeria’s major deepwater discoveries has demonstrated the potential of indigenous companies to participate meaningfully in an industry historically dominated by multinational oil corporations.
Positioning for the Next Chapter
The acquisition of a 40 per cent interest in OPL257 signals another important chapter in SAPETRO’s offshore ambitions.
Beyond the immediate ownership implications, the transaction places the company in a stronger position to participate in the appraisal and potential development of Egina South, a discovery whose proximity to existing production infrastructure could make it an attractive investment opportunity.
For Nigeria, the transaction also highlights the continuing importance of partnerships between indigenous oil companies and international energy operators in unlocking the country’s deepwater petroleum resources.
As the industry navigates evolving investment priorities, production challenges and the transition towards a lower-carbon energy future, access to technically viable and commercially attractive assets will remain crucial.
For SAPETRO, the immediate priority will be the successful completion of the transaction, followed by the appraisal of Egina South and the determination of its development potential.
The outcome could create additional value for all the partners while strengthening Nigeria’s offshore production capacity.
Ultimately, Danjuma’s latest oil deal is a reminder that his influence in Nigeria’s petroleum industry has not been built on short-term transactions alone. It is the product of a long-term investment philosophy anchored on exploration, strategic partnerships, calculated risk-taking and the ability to recognise value in assets with significant development potential.
More than 30 years after founding SAPETRO, the billionaire businessman is still expanding the company’s place in the industry, demonstrating that his deepwater ambitions remain firmly alive.