TotalEnergies has disclosed that its subsidiary, TotalEnergies EP Nigeria, has sealed off an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5 per cent interest in the OML118 Production Sharing Contract.
This was contained in a statement on Thursday in which the company disclosed that the deal is valued at $510m.
OML118 PSC is operated by SNEPCo (55 per cent), in partnership with Esso Exploration and Production Nigeria (20 per cent), TotalEnergies EP Nigeria (12.5 per cent), and Nigerian Agip Exploration (12.5 per cent).
“TotalEnergies announces that its subsidiary, TotalEnergies EP Nigeria, signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5 per cent interest in the OML118 Production Sharing Contract for an amount of $510m,” the company disclosed.
Located deep offshore at 120 km south of the Niger Delta in Nigeria, it contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024.
The statement explained that production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 barrels of oil equivalent per day in the Company’s share in 2024.
TotalEnergies in a release had said the completion of the transaction is subject to customary conditions, including regulatory approvals.
The President of Exploration & Production at TotalEnergies, Nicolas Terraz, said the firm would now focus on assets with low technical costs and emissions.
Terraz stated that it company also intends to lower its cash breakeven.
He added that 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.
“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.
“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,” Terraz stated.
