Quick overview

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TotalEnergies has announced that its subsidiary, TotalEnergies EP Nigeria, agreed with Shell Nigeria Exploration and Production Company Ltd to sell its non-operated 12 percent stake in the OML118 Production Sharing Contract.

 

The business highlighted that the deal was worth $510 million. SNEPCo (55 percent) operates the OML118 PSC in collaboration with Esso Exploration and Production Nigeria (20 percent), TotalEnergies EP Nigeria (12,5 percent), and Nigerian Agip Exploration (12.5 percent)

The company said, “TotalEnergies revealed that its subsidiary TotalEnergies EP Nigeria has reached a deal with Shell Nigeria Exploration and Production Company Ltd to sell its non-operated 12 percent stake in the OML118 Production Sharing Contract for $510 million.” Situated in Nigeria, 120 kilometers south of the Niger Delta, the contract covers deep offshore areas. It includes the Bonga North field, which began production in 2005, and the Bonga field.

The OML 118 PSC’s primary oil production accounts for about 11,000 barrels of oil equivalent per day in the company’s 2024 share. TotalEnergies states that customary conditions, such as regulatory approvals, must be met for the transaction to be completed.

Nicolas Terraz, President of Exploration and Production at TotalEnergies, stated that the company would now concentrate on assets with low emissions and technical costs. According to Terraz, the business also plans to reduce its cash break-even point.

The company is currently advancing the development of the Ubeta project, which is intended to sustain the gas supply to Nigeria LNG, while concentrating on its operated gas and offshore oil assets.