TotalEnergies has agreed to sell its 12.5% non-operated stake in Nigeria’s OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million.
The deal includes TotalEnergies’ interest in the deepwater Bonga oilfield, located 120 kilometers south of the Niger Delta. Completion is subject to regulatory approvals and other standard conditions.
The transaction will increase Shell’s stake in the offshore block from 55% to 67.5%, reinforcing its focus on deepwater operations in Nigeria. Other partners in the OML 118 consortium include Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%). The Bonga field began production in 2005 and includes the Bonga North project, which entered development in 2024.
In a statement, TotalEnergies said the divestment is part of its strategy to streamline its upstream portfolio by focusing on assets with lower technical costs and carbon emissions.
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Nicolas Terraz, President of Exploration and Production at TotalEnergies, emphasized that the company will now concentrate on operated gas and offshore oil assets in Nigeria, including the ongoing Ubeta gas project designed to support Nigeria LNG.
TotalEnergies has operated in Nigeria for over 60 years and remains a significant player in the country’s energy sector, producing 209,000 barrels of oil equivalent per day in 2024. The company also operates a large fuel distribution network, with around 540 service stations nationwide.
Shell, for its part, is intensifying its offshore investments following its exit from Nigerian onshore operations. The company made the final investment decision on the Bonga North deepwater project in December 2024. The development, with over 300 million barrels of recoverable resources, is expected to reach peak production of 110,000 barrels per day by the end of the decade.
Shell’s President of Upstream, Peter Costello, described the acquisition as a significant step in supporting Nigeria’s offshore oil production and strengthening Shell’s upstream portfolio.
