French oil giant TotalEnergies has announced that its Nigerian subsidiary has agreed to sell its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).
The deal, which involves the stake in the Deepwater oilfield Bonga offshore Nigeria, where Shell plans to develop another major project, is valued at $510 million.
This disclosure is contained in a press statement issued by TotalEnergies on Thursday, May 29, 2025, where it stated that the completion of the transaction is subject to customary conditions, including regulatory approvals.
Upon the completion of the deal, Shell’s stake in the OML 118 lease is expected to increase to 67.5% from the present 55% and shows its continued interest in producing oil offshore Nigeria after selling its onshore assets to Renaissance, a consortium of four local companies and an international energy group.
The statement from TotalEnergies reads, ‘’TotalEnergies announces that its subsidiary TotalEnergies EP Nigeria (TEPNG) signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) for an amount of $ 510 million.
‘’OML118 PSC is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%). Located deep offshore at 120 km south of the Niger Delta in Nigeria, it contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024. Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d in Company share in 2024.
‘’Completion of the transaction is subject to customary conditions, including regulatory approvals.’’
President Exploration and Production at TotalEnergies, Nicolas Terraz, said that the sale is part of the French group’s strategy to high-grade its upstream portfolio, while focusing on its operated gas and offshore oil assets in Nigeria.
He said, “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. In Nigeria, 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.”