PARIS: TotalEnergies announced Wednesday that its subsidiary, TotalEnergies EP Nigeria Ltd., has agreed to sell its 12.5% non-operated interest in Nigeria’s OML118 Production Sharing Contract to Shell Nigeria Exploration and Production Company Ltd. for $510 million.
The OML118 PSC, located about 120 kilometers (75 miles) south of the Niger Delta, includes the Bonga field, which began production in 2005, and the Bonga North field, currently under development. The block’s production, primarily oil, contributed approximately 11,000 barrels of oil equivalent per day to TotalEnergies’ output in 2024.
SNEPCo operates the block with a 55% stake, alongside partners Esso Exploration and Production Nigeria Ltd. (20%) and Nigerian Agip Exploration Ltd. (12.5%). The deal is subject to regulatory approvals and other customary conditions.
Nicolas Terraz, president of exploration and production at TotalEnergies, said the sale aligns with the company’s strategy to prioritize low-cost, low-emission assets. “In Nigeria, we are focusing on our operated gas and offshore oil assets, including the Ubeta project, which will support gas supply to Nigeria LNG,” he said.
TotalEnergies has operated in Nigeria for more than 60 years and employs over 1,800 people in the country. Nigeria is a key contributor to the company’s production, with 209,000 boe/d in 2024. TotalEnergies also runs a retail network of about 540 service stations nationwide.
The company reiterated its commitment to Nigeria’s socio-economic development and working with local communities.
TotalEnergies is listed on the Paris (TTE), London (TTE) and New York (TTE) stock exchanges.