French oil giant TotalEnergies has announced that its Nigerian subsidiary has agreed to sell its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).
The deal, which involves the stake in the Deepwater oilfield Bonga offshore Nigeria, where Shell plans to develop another major project, is valued at $510 million.
This disclosure is contained in a press statement issued by TotalEnergies on Thursday, May 29, 2025, where it stated that the completion of the transaction is subject to customary conditions, including regulatory approvals.
Upon the completion of the deal, Shell’s stake in the OML 118 lease is expected to increase to 67.5% from the present 55% and shows its continued interest in producing oil offshore Nigeria after selling its onshore assets to Renaissance, a consortium of four local companies and an international energy group.
What TotalEnergies is saying
The statement from TotalEnergies 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.
‘’Completion of the transaction is subject to customary conditions, including regulatory approvals.’’
Focus on its operated gas and offshore oil assets
President Exploration and Production at TotalEnergies, Nicolas Terraz, said that the sale is part of the French group’s strategy to high-grade its upstream portfolio, while focusing on its operated gas and offshore oil assets in Nigeria.
He said, “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. In Nigeria, 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.”
TotalEnergies has been present in Nigeria for more than 60 years and employs more than 1,800 people across different business segments. Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production, with 209,000 boe/d produced in 2024.
TotalEnergies also operates an extensive distribution network, which includes about 540 service stations in the country. In all its operations, TotalEnergies is particularly attentive to the socio-economic development of the country and is committed to working with local communities.
Bonga field, which is located deep offshore at 120 km south of the Niger Delta in Nigeria, started production in 2005.
Shell’s increasing interest in offshore investment
Shell, for its part, is doubling down on the Bonga field after announcing last December the final investment decision for the development of the Bonga North deep-water project.
The Bonga North project will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility.
Shell said that the Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day (bpd), with first oil anticipated by the end of the decade.
Announcing the acquisition of TotalEnergies’ stake, Shell’s President, Upstream, Peter Costello, said, “Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.”