TotalEnergies has agreed to sell its 12.5% nonoperated interest in the OML 118 production sharing contract (PSC), containing the Bonga field, to Shell Nigeria Exploration and Production Company (SNEPCo) for $510m.
The OML 118 PSC is operated by SNEPCo, which holds a 55% stake. Other partners in the PSC include Esso Exploration and Production Nigeria, holding a 20% stake each, and Nigerian Agip Exploration with a 12.5% stake.
The acquisition will increase SNEPCo’s stake in the OML 118 PSC to 67.5%.
Additionally, the deal will increase Shell's total production in its Integrated Gas and Upstream division by 1% annually until 2030 while also helping to maintain the company’s production of 1.4 million barrels of liquids per day.
TotalEnergies exploration and production president Nicolas Terraz 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 Ubeta project, designed to sustain gas supply to Nigeria LNG [liquified natural gas].”
Situated 120km south of the Niger Delta, the OML 118 PSC contains the Bonga field at water depths of 1,000m.
The OML 118 PSC predominantly produces oil, accounting for approximately 11,000 barrels of oil equivalent per day (boepd) in 2024.
The Bonga field began production in 2005 through the Bonga floating production storage and offloading (FPSO) vessel.
The adjacent Bonga North field's development commenced in December 2024 as a subsea tieback to the Bonga FPSO.
Shell Upstream president Peter Costello added: “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.”
The completion of this transaction is contingent upon meeting customary conditions, including obtaining regulatory approvals.
Earlier this month, TotalEnergies signed a sales and purchase agreement with Ksi Lisims LNG to purchase two million tonnes per annum of LNG over a period of 20 years.
