TotalEnergies Divests Nigerian Offshore Interest to Shell for $510 Million
French energy giant TotalEnergies has confirmed the disposal of its minority stake in a major Nigerian offshore oil project through its local subsidiary.
TotalEnergies EP Nigeria (TEPNG) has reached a deal with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) to transfer its 12.5% non-operating interest in the OML 118 Production Sharing Contract (PSC) for $510 million.
The OML 118 PSC is operated by SNEPCo, which holds a 55% stake. Other partners include Esso Exploration and Production Nigeria with 20%, TotalEnergies EP Nigeria with 12.5%, and Nigerian Agip Exploration holding the remaining 12.5% share.
The offshore concession lies approximately 120 kilometres south of Nigeria’s Niger Delta in deepwater territory. The license area includes the operational Bonga field, which began production in 2005, and the newer Bonga North development, which entered its construction phase in 2024.
Daily output from the oil-focused OML 118 PSC contributed roughly 11,000 barrels of oil equivalent per day to TotalEnergies’ production portfolio in 2024. The French company noted that completing the sale remains subject to standard regulatory approvals and clearance processes.
“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,” said Nicolas Terraz, President, Exploration & Production at TotalEnergies.
“In Nigeria, 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.”
The divestment aligns with TotalEnergies’ strategic shift toward prioritising operated assets and gas developments within Nigeria, particularly those that support the country’s liquefied natural gas infrastructure through initiatives like the Ubeta development program.
