By Ayomide Otitoju
TotalEnergies has announced the sale of its non-operated 12.5% interest in the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million.
The transaction was confirmed in a statement by the company on Wednesday, disclosing that the deal involves its subsidiary, TotalEnergies EP Nigeria. The OML 118 deep offshore asset, located about 120 kilometers south of the Niger Delta, includes the Bonga field, which commenced production in 2005, and the Bonga North development, which began in 2024.
The OML 118 PSC is currently operated by SNEPCo with a 55% stake, in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
Production from the asset is primarily crude oil, with TotalEnergies’ share amounting to approximately 11,000 barrels of oil equivalent per day in 2024.
TotalEnergies stated that the transaction is subject to standard conditions, including regulatory approvals.
Commenting on the divestment, Nicolas Terraz, President of Exploration & Production at TotalEnergies, said the move aligns with the company’s strategy to streamline its upstream portfolio and focus on lower-emission, cost-efficient assets.
“TotalEnergies continues to actively high-grade its upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven,” Terraz said. “The company is focusing on its operated gas and offshore oil assets and is currently progressing the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG.”
The Ubeta project is part of TotalEnergies’ broader push to reinforce its gas footprint in Nigeria and support the country’s liquefied natural gas (LNG) export ambitions.
