TotalEnergies sells stake in Bonga oilfield to Shell for $510m

TotalEnergies says its subsidiary, TotalEnergies EP Nigeria (TEPNG), has signed an agreement to sell its 12.5 percent interest in the oil mining lease (OML) 118 production sharing contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $ 510 million.

In a statement on Thursday, TotalEnergies said the completion of the transaction is subject to customary conditions, including regulatory approvals.

“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,” the statement reads.

“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.”

Speaking on the transaction, Nicolas Terraz, president of exploration and production at TotalEnergies, said the company would continue 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 Ubeta project, designed to sustain gas supply to Nigeria LNG,” Terraz said.

Shell, in a separate statement, said the transaction, expected to be completed before the end of the year, would increase SNEPCo’s interest in the OML 118 PSC from 55 percent to 67.5 percent.

Following the company’s final investment decision on Bonga north last year, Peter Costello, Shell’s upstream president, said the acquisition brings another remarkable investment in Nigeria’s deepwater that “contributes to sustained liquids production and growth in our Upstream portfolio”.

On December 16, Shell announced a final investment decision (FID) on Bonga north, a deepwater project off the coast of Nigeria.