TotalEnergies SE (NYSE:TTE) shares are trading higher today after its subsidiary, TotalEnergies EP Nigeria, inked a sale and purchase agreement (SPA) with Chappal Energies to sell its 10% interest in the SPDC JV licenses in Nigeria for $860 million.

SPDC JV, operated by Shell Petroleum Development Company of Nigeria with partners including Nigerian National Petroleum Corporation (55%), TotalEnergies EP Nigeria (10%), and NAOC (5%), holds 18 licenses in the Niger Delta.

As per the terms, TotalEnergies EP Nigeria will sell its 10% interest and all associated rights in 15 oil-producing licenses of SPDC JV, contributing about 14,000 barrels of oil equivalent per day in 2023.

Additionally, TotalEnergies EP Nigeria will transfer its 10% interest in three gas-producing licenses (OML 23, OML 28, and OML 77) within SPDC JV to Chappal Energies while retaining full economic interest. These licenses currently supply 40% of Nigeria LNG's gas.

The completion of the deal is subject to standard conditions, including regulatory approvals.

Yesterday, TotalEnergies disclosed that it expects its hydrocarbon production levels in the second quarter to reach close to 2.45 Mboe/d, at the upper limit of its guidance range.

In addition, the company formed a joint venture with SSE Plc (OTC:SSEZY) under the brand "Source" to establish a major EV charging network in the U.K. and Ireland.

Investors can gain exposure to TTE via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX) and Keating Active ETF (NASDAQ:KEAT).

Price Action: TTE shares are up 0.76% to $68.84 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.