BAKU, Azerbaijan, May 29. TotalEnergies announced that its subsidiary, TotalEnergies EP Nigeria (TEPNG), has signed an agreement to sell its 12.5% non-operated interest in the OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million, Trend reports.
The OML 118 PSC is operated by SNEPCo, which holds a 55% stake, alongside partners Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%). The block is located about 120 kilometers offshore from the Niger Delta and includes the Bonga field, which began production in 2005, and the Bonga North field, whose development started in 2024.
In 2024, the OML 118 PSC is expected to produce around 11,000 barrels of oil equivalent per day (boe/d) in TotalEnergies’ share, primarily oil.
The transaction is subject to customary closing conditions, including regulatory approvals.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, stated that the company continues to optimize its upstream portfolio by focusing on assets with lower technical costs and emissions. He added that in Nigeria, TotalEnergies is concentrating on its operated gas and offshore oil assets, including advancing the development of the Ubeta project, aimed at sustaining gas supply to Nigeria LNG.