TotalEnergies has announced the sale of its non-operated 12.5% interest in the OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).
The deal, valued at $510 million, was signed by TotalEnergies’ Nigerian subsidiary, TotalEnergies EP Nigeria.
The OML 118 block, located about 120 km offshore from the Niger Delta, includes the Bonga field—which began production in 2005—and the Bonga North development, which commenced in 2024.
SNEPCo operates the block with a 55% interest, alongside partners Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
In its statement, TotalEnergies noted that its share of production from the PSC amounted to approximately 11,000 barrels of oil equivalent per day in 2024.
Completion of the transaction remains subject to customary conditions, including regulatory approvals.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, said the divestment aligns with the company’s strategy to streamline its upstream portfolio, prioritizing assets with low technical costs and emissions.
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“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.
“We are concentrating on our operated gas and offshore oil assets and progressing the Ubeta project, which is intended to support continued gas supply to Nigeria LNG.”
