BAKU, Azerbaijan, November 25. Shell’s Nigerian subsidiary, Shell Nigeria Exploration and Production Company (SNEPCo), has increased its stake in the OML 118 Production Sharing Contract (PSC) from 55% to 65%, following the completion of a previously announced agreement, the company said, Trend reports.
The offshore license includes the Bonga field, which SNEPCo operates alongside Esso Exploration and Production Nigeria Ltd. (20%) and Nigerian Agip Exploration Ltd. (15%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
Nigerian Agip, a subsidiary of Eni, exercised its pre-emption rights to acquire an additional 2.5% in OML 118, reducing the portion SNEPCo had initially agreed to purchase from 12.5% to 10%.
Shell said the acquisition, following last year’s final investment decision on Bonga North, represents a “significant investment” in Nigeria’s deepwater sector and is part of the company’s strategy to invest in competitive existing assets to sustain liquids production and growth in its upstream portfolio.
The company added that the move will contribute to growing Shell’s combined Integrated Gas and Upstream production by around 1% per year to 2030 and supports maintaining total liquids output of 1.4 million barrels per day.