Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell Plc, has entered into an agreement to acquire TotalEnergies EP Nigeria Limited’s 12.5% stake in the OML 118 Production Sharing Contract (PSC), which includes the prolific Bonga oil field located offshore Nigeria.
The company confirmed the divestment in a statement released Monday, noting that upon completion, Shell’s ownership in OML 118 will rise from 55% to 67.5%, reinforcing its position as the operator of this critical deep-water asset.
SNEPCo currently operates production from the Bonga field through the Bonga Floating Production Storage and Offloading (FPSO) vessel. The firm also announced the development of the adjacent Bonga North field in December 2024, a key expansion in the area’s production profile.
Peter Costello, Shell’s President of Upstream, remarked, “Following our final investment decision on Bonga North last year, this acquisition marks a significant deep-water investment in Nigeria, supporting sustained liquids production and growth within our Upstream portfolio.”
The transaction remains subject to regulatory approvals and customary closing conditions, with an expected completion timeline before the end of the year.
Key Details:
- The OML 118 PSC partnership currently includes SNEPCo (55%), Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies EP Nigeria Ltd. (12.5%) acting on behalf of the Nigerian National Petroleum Company Limited (NNPC).
- Post-transaction, SNEPCo’s stake will increase to 67.5%, with Esso and Nigerian Agip retaining their 20% and 12.5% shares respectively.
- This investment aligns with Shell’s strategy to grow its Integrated Gas and Upstream production by 1% annually through 2030, aiming to sustain its liquids production at approximately 1.4 million barrels per day.
- The Bonga field, discovered offshore in waters exceeding 1,000 meters deep, began production in 2005 and has a capacity of 225,000 barrels of oil per day. It celebrated the milestone of producing its one-billionth barrel of crude oil in 2023.
- The Bonga North development, announced in December 2024, is a subsea tie-back to the existing Bonga FPSO. It holds estimated recoverable resources exceeding 300 million barrels of oil equivalent and is expected to peak at 110,000 barrels per day, with first oil targeted by the end of the decade.
- The recoverable resource figures represent 2P reserves (proven and probable) as classified by the Society of Petroleum Engineers’ standards.
