TotalEnergies has announced that its subsidiary, TotalEnergies EP Nigeria (TEPNG), has signed an agreement to sell its 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.
Gatekeepers News reports that the company in a statement on Thursday, noted that the completion of the transaction is subject to customary conditions, including regulatory approvals.
The statement 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.”
Nicolas Terraz, President of Exploration and Production at TotalEnergies, said the divestment aligns with the company’s strategy to streamline its upstream portfolio by focusing on assets with lower technical costs and emissions.
Terraz said, “In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG.”
In a separate statement, Shell said the transaction would increase SNEPCO’s interest in the OML 118 PSC from 55 percent to 67.5 percent.
Commenting on the transaction, Peter Costello, Shell’s Upstream President, said the transaction was a significant investment in Nigeria’s deepwater sector. He emphasized that it would support sustained production and contribute to Shell’s broader upstream portfolio.
