TotalEnergies Sells Nigerian Offshore Stake to Shell Amid Portfolio Shift

TotalEnergies has announced the sale of its 12.5% non-operated interest in the OML118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million. This transaction reflects TotalEnergies' ongoing strategy to optimize its upstream portfolio and focus on low-cost, low-emission assets.

OML118 Overview and Production Details

OML118 is a deep offshore oil and gas field, located approximately 120 km south of the Niger Delta in Nigeria. The OML118 PSC is operated by Shell with a 55% stake, while Esso Exploration and Production Nigeria holds a 20% share, and TotalEnergies EP Nigeria and Nigerian Agip Exploration each own 12.5%.

The field includes the Bonga oil field, which has been in production since 2005, as well as the Bonga North field, which started its development in 2024. The total production from the OML118 PSC is approximately 11,000 barrels of oil equivalent per day (boe/d) for TotalEnergies' share in 2024.

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Strategic Focus on Gas and Offshore Oil Assets

Nicolas Terraz, President of Exploration & Production at TotalEnergies, said, “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"

He added, “In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG”

Transaction Details

The sale of TotalEnergies' 12.5% interest is subject to customary conditions, including regulatory approvals. This move is part of TotalEnergies’ broader strategy to refocus its portfolio on assets with lower technical costs and lower emissions, while also lowering its cash breakeven.