- TotalEnergies agreed to sell its 12.5% non-operated stake in Nigeria’s OML 118 offshore oil block to Shell for $510 million, pending regulatory approval.
- The move aligns with TotalEnergies’ strategy to focus on lower-cost, lower-emission assets and advance its gas projects.
TotalEnergies has signed an agreement to sell its 12.5% non-operated stake in Nigeria’s OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for $510 million, the French energy major announced in a statement on Thursday, May 29.
The deal, executed through its local subsidiary TotalEnergies EP Nigeria, forms part of its strategy to streamline its upstream portfolio by offloading assets with higher operating costs and emissions.
OML 118, located approximately 120 kilometres offshore south of the Niger Delta, includes key assets such as the Bonga field, which began production in 2005, and the Bonga North development, which kicked off in 2024.
The PSC is currently operated by SNEPCo, holding a 55% interest, in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).
According to TotalEnergies, its share of production from OML 118 averaged around 11,000 barrels of oil equivalent per day in 2024, predominantly from oil.
While the agreement marks a significant shift in TotalEnergies’ Nigerian portfolio, the company remains committed to its core upstream operations. Nicolas Terraz, President of Exploration & Production at TotalEnergies, outlined the rationale behind the sale.
“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 Terraz.
“We are concentrating on our operated gas and offshore oil assets, and we are currently progressing the Ubeta gas project, which is key to sustaining gas supply to Nigeria LNG,” he added.
The transaction remains subject to customary closing conditions, including regulatory approvals from Nigerian authorities. Once completed, the deal will enhance Shell’s operating stake in the offshore license and further consolidate its deepwater operations in the region.
TotalEnergies has been gradually reshaping its global upstream portfolio by exiting higher-cost and carbon-intensive assets. The Nigerian divestment comes amid broader efforts by international oil companies to rebalance portfolios toward cleaner energy sources and more profitable, lower-emission assets.
This development follows a broader industry trend of repositioning in sub-Saharan Africa as oil majors seek to align with global energy transition goals while preserving shareholder value.