Mathew Amaechi
French energy giant TotalEnergies is retreating further from Nigeria’s deepwater oil sector, confirming the $510 million sale of its 12.5% non-operated stake in the OML 118 Production Sharing Contract to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).
Announced Thursday, the transaction sees Shell, already the field’s operator with a 55% interest, consolidate its position in the offshore license, which includes the Bonga and Bonga North fields—strategic oil-producing assets located about 120 kilometers off the coast of the Niger Delta.
Also holding stakes in the project are Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%).
Production from OML 118—mainly crude oil—contributed around 11,000 barrels of oil equivalent per day to TotalEnergies in 2024. The Bonga field began production in 2005, while work on the Bonga North field kicked off in 2024.
The deal is subject to regulatory approvals and other standard closing conditions.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, said the move is part of a deliberate shift in strategy, aimed at trimming costs, cutting emissions, and concentrating on assets with stronger economic and environmental returns.
“TotalEnergies continues to actively high-grade its upstream portfolio,” Terraz said. “We’re focusing on our operated gas and offshore oil assets and are advancing the Ubeta project, which is key to sustaining gas supply to Nigeria LNG.”
The sale signals a broader industry trend in Nigeria, as international oil companies continue to reevaluate their upstream portfolios amid rising capital discipline, environmental scrutiny, and shifting global energy priorities.
For Shell, the acquisition deepens its commitment to deepwater production in Nigeria, at a time when the country is seeking to boost output and attract new investment into its oil and gas sector.
