TotalEnergies Sells Its Stake in Nigeria’s Bonga Field Development Project to Shell
TotalEnergies EP Nigeria (TEPNG), a subsidiary of France’s TotalEnergies, has signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo), a subsidiary of Shell, to sell its 12.5% stake in the Production Sharing Contract (PSC) for OML 118.
This information comes from a joint statement by the companies. The transaction amount is $510 million USD. The deal is expected to close by the end of 2025, subject to standard conditions, including regulatory approval.
After the transaction is completed, Shell’s stake in the OML 118 PSC will increase from 55% to 67.5%.
The operator of the OML 118 PSC is SNEPCo (55%), with partners Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
The key asset of the OML 118 block is the Bonga field, located on the continental shelf of Nigeria.
Key points from TotalEnergies’ President of Exploration and Production, Nicolas Terraz:
TotalEnergies continues to actively optimize its exploration and production portfolio, focusing on assets with low operating costs and low emissions, while also lowering the breakeven level.
In Nigeria, the company is focusing on its gas and offshore oil assets and is currently continuing the development of the Ubeta project, designed to supply natural gas to the Nigeria LNG (NLNG) plant.
Shell’s President of Upstream, P. Costello, stated that following the Final Investment Decision (FID) on the Bonga North project, the deal with TotalEnergies represents another significant investment in Nigeria’s deepwater sector, supporting hydrocarbon production growth.
Bonga Field:
The first deepwater project in Nigeria;
Located within the OML 118 block at a depth of over 1,000 meters;
Covers an area of 60 km²;
Production began in 2005, increasing the country’s oil output by 10%;
Developed using a Floating Production, Storage, and Offloading (FPSO) unit with a capacity of 225,000 barrels of oil per day;
In 2023, the billionth barrel of oil was produced under the project;
Development partners:
SNEPCo (operator, 55%)
Esso Exploration and Production Nigeria Ltd. (ExxonMobil subsidiary, 20%)
Nigerian Agip Exploration Ltd. (Eni subsidiary, 12.5%)
TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
In August 2014, a new development phase began: Bonga North West, involving six wells (four producing and two injectors).
In December 2024, Shell took FID on the Bonga North project, aimed at sustaining oil and gas production at the main Bonga field.
The recoverable reserves of the Bonga North field are estimated at over 300 million barrels of oil equivalent (2P: proved and probable). Production is expected to reach 110,000 barrels of oil per day (at plateau). First oil is expected by the end of the decade.
Ubeta Field:
Located within OML 58;
Will be developed with a new cluster site consisting of six wells, connected to the Obite facilities by an 11-kilometer pipeline;
Production start planned for 2027;
Plateau production expected at 300 million cubic feet per day (approximately 70,000 barrels of oil equivalent per day);
Natural gas will be supplied to the NLNG plant, whose capacity is currently being increased from 22 million to 30 million tonnes per year;
Project carbon intensity will be reduced through the construction of a 5 MW solar power plant at the Obite site and electrification of the drilling rig.
TotalEnergies and NNPC took FID on the development of the Ubeta gas field in June 2024.
