Shell Nigeria Exploration and Production Company (SNEPCo) has signed an agreement to acquire TotalEnergies’ 12.5% stake in the OML 118 Production Sharing Contract offshore Nigeria.
The deal, announced by Shell on May 28, will raise Shell’s interest in OML 118 from 55% to 67.5% once completed. SNEPCo operates the block, which includes the Bonga field.
SNEPCo currently partners with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies EP Nigeria Ltd. (12.5%) under the PSC. After the transaction closes, the partnership will consist of SNEPCo (67.5%), Esso (20%), and Agip (12.5%).
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“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” Shell’s President, Upstream, Peter Costello said.
The transaction is subject to regulatory approvals and is expected to close before year-end.
Shell said the investment supports its goal of growing combined integrated gas and upstream production by 1% per year to 2030. It also helps sustain the current liquids production of 1.4 million barrels per day.
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The Bonga field lies in water depths over 1,000 meters and began producing in 2005. It has a production capacity of 225,000 barrels of oil per day and reached its one-billionth barrel in 2023.
Shell approved the development of the Bonga North project in December 2024. The tie-back to the Bonga floating production, storage and offloading (FPSO) vessel holds an estimated 300 million barrels of oil equivalent in recoverable 2P reserves. Peak production is projected at 110,000 barrels per day, with first oil expected by decade’s end.
