TotalEnergies Sells Stake in Major Nigerian Oil Block to Shell for $510 Million

TotalEnergies is making a strategic exit from one of Nigeria’s most prominent offshore oil fields. The French energy giant announced Thursday that its Nigerian subsidiary, TotalEnergies EP Nigeria (TEPNG), has reached a $510 million deal to sell its 12.5% stake in Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).

The transaction, subject to regulatory approvals and other standard conditions, marks a significant shift in ownership within the OML 118 Production Sharing Contract (PSC), a vital asset in Nigeria’s deepwater oil sector.

OML 118, located about 120 kilometers south of the Niger Delta, is home to the prolific Bonga oil field, which has been operational since 2005, and the recently greenlit Bonga North project, whose development began in 2024. The PSC is currently operated by SNEPCo, which held a 55% stake before the deal. Other partners include Esso Exploration and Production Nigeria (20%), Nigerian Agip Exploration (12.5%), and formerly TotalEnergies EP Nigeria (12.5%).

The sale will see SNEPCo increase its ownership to 67.5%, strengthening Shell’s position in Nigeria’s deepwater sector.

“This transaction is aligned with our strategy to high-grade our upstream portfolio,” said Nicolas Terraz, TotalEnergies’ President of Exploration and Production. “We aim to focus on assets with low technical costs and low emissions while reducing our cash breakeven.”

Terraz emphasised that TotalEnergies remains committed to Nigeria, particularly in its operated gas and offshore oil ventures. The company is currently advancing the Ubeta gas development project, which will help maintain the supply to Nigeria LNG.

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Shell also released a statement confirming the acquisition and expressing optimism about its implications for long-term production in the region.

“This acquisition brings another remarkable investment in Nigeria’s deepwater that contributes to sustained liquids production and growth in our upstream portfolio,” said Peter Costello, Shell’s President of Upstream. He highlighted the company’s final investment decision (FID) on the Bonga North project, announced in December, as a cornerstone of this expansion.