An arbitration tribunal delivered a significant victory to the Nigerian National Petroleum Company Limited (NNPCL) on November 19, 2025, ordering TotalEnergies EP Nigeria Limited to pay $285.2 million for excess oil taken beyond agreed limits, plus substantial legal costs.
The dispute traces back to 2015 and revolves around the Amenam/Kpono Carry Agreement signed on June 7, 2000. At the heart of the conflict is whether TotalEnergies retained oil lifting rights after NNPCL fulfilled its financial obligations under the arrangement.
According to sources close to the matter, NNPCL had completely repaid the Carry Capital Cost of $697.2 million by December 2007, along with the agreed interest of $281 million. The original agreement covered 492 million barrels of shared oil valued at an assumed price of $17 per barrel. With repayment complete, NNPCL argued that TotalEnergies no longer had rights to continue lifting oil, leading the state oil company to file a counterclaim to recover the excess volumes taken.
TotalEnergies defended its position by arguing the Carry Agreement operated similarly to a Production Sharing Contract, where it assumed exploration and production risks in return for pre-determined oil recovery rights.
The tribunal rejected TotalEnergies’ interpretation and ordered the French oil major to pay the $285.2 million award, along with legal costs totaling $343,191.88 and N112.5 million, within 14 days.
The legal battle appears far from over, however. TotalEnergies has reportedly filed a challenge in the Federal High Court, while NNPCL is pursuing recognition and enforcement of the tribunal’s ruling.
Industry observers view the decision as a landmark win for NNPCL, strengthening its position in shared oil agreements and signaling to international oil companies that Nigeria will enforce contractual terms in its petroleum sector.
