In a strategic move to streamline its upstream portfolio, TotalEnergies has signed an agreement to divest its 12.5% non-operated interest in Nigeria’s OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million.
The OML 118 block, located approximately 120 kilometers off the coast of the Niger Delta, is operated by SNEPCo, which holds a 55% interest, alongside Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
The block includes the Bonga field, which began production in 2005, and Bonga North, a more recent development launched in 2024.
In 2024, TotalEnergies’ share of production from OML 118 stood at approximately 11,000 barrels of oil equivalent per day (boe/d), primarily from oil.
The transaction is subject to standard closing conditions, including regulatory approvals from the appropriate Nigerian authorities.
According to Nicolas Terraz, President of Exploration & Production at TotalEnergies, the divestment aligns with the company’s ongoing strategy to focus on low-cost, low-emission assets and reduce cash breakeven levels.
“TotalEnergies continues to actively high-grade its Upstream portfolio, focusing on assets with low technical costs and emissions,” Terraz said. “In Nigeria, the company is concentrating on its operated gas and offshore oil assets and is advancing the Ubeta project to support gas supply to Nigeria LNG.”
This latest transaction underscores TotalEnergies’ broader efforts to optimize its global asset base while maintaining a strong presence in Nigeria’s gas and offshore oil sectors.
