TotalEnergies SE (NYSE:TTE), a global energy leader, revealed on Wednesday the completion of two strategic transactions that significantly enhance its operational positioning in the Middle East and West African regions.
Central to these developments is the establishment of BxT Trading, a freshly formed 50/50 trading joint venture in partnership with Bapco Energies. This alliance leverages the refinery flows of Bapco Energies in Bahrain and introduces a new competitor into the Middle Eastern energy trading landscape.
The inception of BxT Trading caters to Bahrain's oil industry's strategic goals by amplifying value extraction and broadening the reach to international markets. For TotalEnergies, this joint venture marks a substantial expansion of its trading network within the Middle East, complementing existing hubs located in Houston, Geneva, and Singapore. The initiative is designed to improve the company's agility and responsiveness to the dynamic needs of regional energy markets.
The partnership also serves as a conduit for Bapco Energies to access TotalEnergies' extensive global trading acumen. This includes the transfer and development of advanced expertise in areas such as pricing strategy, market analysis, and risk management essential for competitive operation in commodity trading.
In parallel, TotalEnergies EP Nigeria, the company's Nigerian subsidiary, formalized a Sale and Purchase Agreement (SPA) with Vaaris Energy Limited to divest its 10% non-operated interest in the Renaissance Joint Venture licenses. Previously recognized as the SPDC JV, the Renaissance JV consists of multiple stakeholders: the Nigerian National Petroleum Corporation (NNPC) holding 55%, Renaissance Africa Energy as the 30% operator, TotalEnergies holding 10%, and Agip with 5%.
This joint venture oversees a portfolio comprising 18 licenses within Nigeria’s Niger Delta basin. Under the terms agreed with Vaaris, TotalEnergies EP Nigeria will relinquish its 10% stake and all associated rights in 15 of these licenses, predominantly oil-producing assets projected to yield approximately 16,000 barrels of oil equivalent per day in 2025.
Additionally, the agreement includes the transfer of TotalEnergies’ 10% holdings in three gas-centered licenses—OML 23, 28, and 77—to Vaaris. While the operational interest in these gas licenses is conveyed to Vaaris, TotalEnergies will retain the complete economic benefits from these assets, which are critical contributors, currently supplying 50% of Nigeria LNG's gas feedstock.
These transactions reflect a broader trend in TotalEnergies’ strategy to recalibrate its asset base. Recently, the company reached an accord to monetize a 50% stake in a 424-megawatt portfolio of wind and solar energy projects in Greece, selling to Asterion Industrial Partners for approximately €508 million (equivalent to about $595 million). Moreover, within Nigeria, TotalEnergies EP Nigeria agreed to dispose of a 40% interest in PPL 2000 and PPL 2001 exploration licenses to Star Deep Water Petroleum Limited, indicating a continued focus on optimizing exploration and development stakes.
Market response to these developments was reflected in TotalEnergies stock movements, with shares trading higher by 0.71%, reaching $66.27 during early Wednesday premarket sessions. This price aligns closely with the company's 52-week high of $66.92, signaling positive investor sentiment around the company’s expanding strategic footprint.
The company's presence and trading capability enhancements in the Middle East via BxT Trading position it to better serve regional market demands, while the Nigerian divestment aligns with a portfolio rationalization effort, capturing value from mature assets and potentially focusing resources on higher-priority areas.
Through these carefully structured agreements, TotalEnergies illustrates its dual approach of reinforcing its trading operations in critical hubs and actively managing asset exposure in key producing regions, balancing market responsiveness with strategic asset allocation.