TotalEnergies sells stake in Bonga Field for $500m to SNEPCo

TotalEnergies yesterday announced that its subsidiary TotalEnergies EP Nigeria (TEPNG) has signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) for an amount of $ 510 million. OML118 PSC is operated by SNEPCo (55%), in partnership with […]

TotalEnergies yesterday announced that its subsidiary TotalEnergies EP Nigeria (TEPNG) has signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) for an amount of $ 510 million.

OML118 PSC is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).

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. Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d in company share in 2024.

However, the completion of the transaction is subject to customary conditions, including regulatory approvals.

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“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 of 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.”

Daily Trust reports that this is the latest in the series of divestment from onshore assets to focus on gas and low-carbon investments.

In recent times, international oil companies (IOCs) have embarked on a series of assets’ divestments.

There was the $1.3 billion ExxonMobil divestment to Seplat, Renaissance Africa Energy’s take over of total shares and assets of Shell Petroleum Development Company (SPDC) in Nigeria.

Others were TotalEnergies’ divestment to Chappal for $860 million, Oando PLC acquisition of shares of Nigerian Agip Oil Company (NAOC) at $783 million, among others.