Shell Nigeria Exploration and Production Company (SNEPCo) has signed a deal to buy TotalEnergies’ 12.5% stake in Oil Mining Lease (OML) 118.
This deal is worth $150 million. It increases Shell’s stake in OML 118 from 55% to 67.5%.
The offshore block includes the Bonga oilfield. This field was Nigeria’s first deepwater oil project and started production in 2005.
The Bonga field has a production capacity of 225,000 barrels per day.
TotalEnergies said the sale fits its global strategy. The company wants to focus more on natural gas and areas where it has full control.
“The divestment aligns with our strategy to focus on assets where we have operational control, particularly in gas and offshore oil,” said Nicolas Terraz, president of Exploration & Production at TotalEnergies.
Shell Boosts Position Ahead of Bonga North Production Launch
Shell’s larger stake in OML 118 comes at a key time. The company recently approved the Bonga North development.
Bonga North is a major new deepwater project. It is tied to the existing Bonga Floating Production Storage and Offloading (FPSO) vessel.
This new project is estimated to hold more than 300 million barrels of oil equivalent. It could reach a peak output of 110,000 barrels per day.
Shell expects the first oil from Bonga North before 2030.
“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deepwater,” said Peter Costello, Shell’s upstream operations president.
“It contributes to sustained liquids production and growth in our Upstream portfolio,” he added.
This development highlights Shell’s long-term interest in Nigerian oil. It also shows growing international investment in Nigeria’s offshore energy sector.
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