TotalEnergies has agreed to sell its 12.5% non-operated interest in Nigeria’s OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company (SNEPCo) for $510 million.
The agreement includes TotalEnergies’ stake in the Bonga deepwater oilfield, where Shell is preparing to launch a new development phase.
TotalEnergies disclosed the deal on May 29, 2025, adding that it is subject to standard conditions, including regulatory approval.
Once finalized, Shell’s share in OML 118 will rise from 55% to 67.5%, signaling its continued investment in offshore oil production, following the sale of its onshore assets to Renaissance, a consortium involving local firms and an international partner.
According to TotalEnergies, the OML 118 PSC is operated by SNEPCo (55%) alongside Esso Exploration (20%), TotalEnergies (12.5%), and Nigerian Agip Exploration (12.5%). The block lies 120 km off the Niger Delta and contains both the producing Bonga field and the recently launched Bonga North development.
OML 118 contributed about 11,000 barrels of oil equivalent per day to TotalEnergies’ 2024 output.
Nicolas Terraz, TotalEnergies’ President of Exploration and Production, said the divestment aligns with the company’s strategy to streamline its upstream portfolio by focusing on lower-cost, lower-emission assets, particularly in operated gas and offshore oil projects.
He highlighted ongoing efforts like the Ubeta project, which aims to support gas supply to Nigeria LNG.
TotalEnergies has operated in Nigeria for over 60 years, employing over 1,800 people. In 2024, Nigeria accounted for 209,000 boe/d of its global hydrocarbon production. The company also manages 540 service stations nationwide and remains committed to supporting local communities.
Shell, on the other hand, is ramping up its offshore investments. Last year, it approved the Bonga North project—a subsea tie-back to the Bonga FPSO—with an estimated 300 million boe in recoverable resources. The project is expected to reach peak production of 110,000 barrels per day by the end of the decade.
Commenting on the acquisition, Shell’s Upstream President, Peter Costello, said the move reinforces Shell’s deepwater strategy in Nigeria and supports long-term production growth in its upstream business.
Source: nairametrics.com
African Energy Council