Sopuruchi Onwuka

French multinational supermajor, TotalEnergies, has executed a surprise divestment of its on operated stake in the highly prospective Oil Mining Lease (OML) 118 deepwater acreage, expecting recovery of significant $510 million.

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In a statement available to The Oracle Today in Lagos, local upstream business unit, TotalEnergies EP Nigeria (TEPNG), declared that it signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML 118 Production Sharing Contract (PSC).

Completion of the transaction is subject to customary conditions, including regulatory approvals which have become subject of political interventions in recent times as regulators rely on pointers from proxies loyal to the administration of the government.

Shell’s SNEPCo operates the OML 118 PSC with 55% stake in partnership with ExxonMobil’s Esso Exploration and Production Nigeria which holds 20% in the PSC, TotalEnergies EP Nigeria has 12.5% stake, and Eni’s Nigerian Agip Exploration (NAE) holds 12.5% stake.

The OML 118 which is located deep offshore at 120 kilometers south of the Niger Delta in Nigeria contains the Bonga Main field.  And Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d  in 2024.

Bonga Main which started production in 2005 is the first major deepwater field development of its size in Nigeria even though Eni already started a minor deepwater field production ahead of Shell.

OML 118 also hosts the Bonga North field the development of which started in 2024.

The Oracle Today reports that TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas, biogas and low-carbon hydrogen, renewables and electricity.

The company boasts that it is active in about 120 countries with its more than 100,000 employees are committed to providing as many people as possible with energy that is more reliable, more affordable and more sustainable.

TotalEnergies has been present in Nigeria for more than 60 years and employs today more than 1,800 people across different business segments. Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production with 209,000 boe/d produced in 2024.

TotalEnergies also operates an extensive distribution network which includes about 540 service stations in the country. In all its operations, TotalEnergies is particularly attentive to the socio-economic development of the country and is committed to working with local communities.

President Exploration & Production at TotalEnergies, Nicolas Terraz, declared: “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.”

 “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,” he pointed out.