TotalEnergies has revealed that its Nigerian subsidiary, TotalEnergies EP Nigeria, has entered into a deal with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) to divest its 12.5% non-operating stake in the OML118 Production Sharing Contract.
The energy giant, in an official update on Thursday, confirmed that the transaction is worth $510 million.
OML118, a major offshore oil block, is managed by SNEPCo, which holds a controlling 55% interest. Other stakeholders in the block include Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
“TotalEnergies announces that its subsidiary, TotalEnergies EP Nigeria, signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5 per cent interest in the OML118 Production Sharing Contract for an amount of $510m,” the company disclosed.
Positioned roughly 120 kilometers off the Niger Delta in deep waters, OML118 encompasses the Bonga field — which began production in 2005 — along with Bonga North, a newer development initiated in 2024.
In 2024, TotalEnergies’ share from the block amounted to approximately 11,000 barrels of oil equivalent per day, with output primarily consisting of crude oil.
The firm noted that the agreement is subject to the standard regulatory approvals and other customary closing conditions.
Nicolas Terraz, TotalEnergies’ President of Exploration & Production, emphasized the company’s shift toward more cost-effective and environmentally efficient assets. He pointed out that the move is part of a broader strategy to reduce financial thresholds and enhance sustainability.
“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.
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,” Terraz stated.
