PARIS – TotalEnergies, the French energy giant, is streamlining its Nigerian operations. The company announced today that its subsidiary, TotalEnergies EP Nigeria (TEPNG), has inked a deal with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) to sell its 12.5% stake in the OML118 Production Sharing Contract (PSC) for $510 million. The move underscores the company’s strategic shift, signaling a focus on higher-yield, lower-emission assets.
The OML118 PSC, situated deep offshore, approximately 120 km south of the Niger Delta, is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%). The key asset within the PSC is the Bonga field, which commenced production in 2005, alongside the Bonga North field, which began development this year. Output from OML 118, primarily oil, is expected to contribute roughly 11,000 barrels of oil equivalent per day to TotalEnergies’ portfolio in 2024.
The completion of this transaction is contingent upon customary conditions, including regulatory approvals, a standard caveat in deals of this magnitude.
“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,” noted 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 Ubeta project, designed to sustain gas supply to Nigeria LNG.”
TotalEnergies has maintained a presence in Nigeria for over six decades, and currently employs over 1,800 people in the country across its various businesses. Nigeria is a key contributor to TotalEnergies’ overall hydrocarbon production, registering 209,000 boe/d in 2024. The company also operates a substantial distribution network in Nigeria, including approximately 540 service stations. Demonstrating its commitment to the region, TotalEnergies is actively involved in the socio-economic evolution of the country and endeavors to collaborate with local communities.
TotalEnergies is a global, integrated energy behemoth, producing and marketing a diverse range of energies, including oil and biofuels, natural gas, biogas, low-carbon hydrogen, renewables, and electricity. The company has a workforce exceeding 100,000 employees dedicated to providing accessible, reliable, and sustainable energy to a broad global audience. Operating in roughly 120 countries, TotalEnergies places sustainability at the heart of its corporate strategy, projects, and overall operations.
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