By Huldah Shado
TotalEnergies has announced the sale of its non-operated 12.5% stake in the OML 118 Production Sharing Contract (PSC), to Shell Nigeria Exploration and Production Company Ltd (SNEPCo), for $510 million.
The agreement, signed through its subsidiary TotalEnergies EP Nigeria, was disclosed in a statement on Thursday.
OML 118, located 120 kilometers offshore south of the Niger Delta, includes the Bonga field-Nigeria’s first deepwater oil project, which commenced production in 2005 and the Bonga North development, launched in 2024.
The deepwater block is operated by SNEPCo with a 55% stake, alongside Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
TotalEnergies noted that its share of production from the block in 2024 stood at approximately 11,000 barrels of oil equivalent per day.
The company said the transaction remains subject to customary regulatory approvals and closing conditions.
Commenting on the divestment, Nicolas Terraz, President of Exploration & Production at TotalEnergies, said the decision aligns with the company’s strategic focus on assets with lower technical costs and reduced carbon emissions.
“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 break-even,” Terraz stated. “We are concentrating on operated gas and offshore oil assets, including the ongoing development of the Ubeta project, which is aimed at sustaining gas supply to Nigeria LNG.”
The move is part of TotalEnergies’ broader effort to streamline its portfolio and align its operations with energy transition goals.