Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell plc, has completed the transaction to increase its interest in the OML 118 Production Sharing Contract to 65 percent. The completion follows SNEPCo’s earlier agreement to acquire the 12.5 percent stake originally held by TotalEnergies EP Nigeria Limited in OML 118.

During the pre-emption process, Nigerian Agip Exploration, a subsidiary of Eni, exercised its rights to acquire 2.5 percent of that stake. This reduced the portion transferred to SNEPCo to 10 percent, bringing its total interest in the block from 55 percent to 65 percent.

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The acquisition comes on the heels of Shell’s final investment decision on the Bonga North development last year. Shell says the increased stake is aligned with its strategy to invest in competitive deep-water assets that can sustain liquids production and support growth in its Upstream portfolio.

SNEPCo operates OML 118, which includes the producing Bonga field, in partnership with Esso Exploration and Production Nigeria Limited with 20 percent and Nigerian Agip Exploration with 15 percent. Production is managed through the Bonga Floating Production Storage and Offloading vessel.

Shell notes that the targeted investment supports its plan to grow combined Integrated Gas and Upstream production by about 1 percent a year to 2030, while contributing to the company’s 1.4 million barrels per day liquids output target.

The company expects all regulatory approvals for the transaction to be finalised before year-end.