TotalEnergies has announced that its Nigerian subsidiary, TotalEnergies EP Nigeria, has signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML 118 Production Sharing Contract.
In a statement released on Thursday, the company disclosed that the transaction is valued at $510 million.
OML118 PSC is operated by SNEPCo which holds a 67.5% stake following a recent acquisition of TotalEnergies’ 12.5% interest.
The other partners are Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%).
“TotalEnergies announces that its subsidiary, TotalEnergies EP Nigeria, signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5 per cent interest in the OML118 Production Sharing Contract for an amount of $510m,” the company disclosed.
Located about 120 km offshore, south of the Niger Delta in Nigeria, OML 118 includes the Bonga field, which began production in 2005, and the Bonga North field, whose development started in 2024.
Production from OML 118 PSC in 2024, primarily oil, amounts to approximately 11,000 barrels of oil equivalent per day based on the Company’s share.
TotalEnergies stated that the transaction will be completed once customary conditions, such as regulatory approvals, are met.
The President of Exploration & Production at TotalEnergies, Nicolas Terraz, said the firm would now focus on assets with low technical costs and emissions.
Terraz stated that it company also intends to lower its cash breakeven.
He noted that the company is concentrating on its operated gas and offshore oil assets and is moving forward with the development of the Ubeta project, aimed at sustaining gas supply to Nigeria LNG.
“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.
“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,” Terraz stated.
