In a decisive move to reshape its upstream portfolio and sharpen operational focus, TotalEnergies has announced the sale of its non-operated 12.5 percent interest in Nigeria’s deep offshore OML118 Production Sharing Contract (PSC). The French energy major disclosed that the agreement was signed between its subsidiary, TotalEnergies EP Nigeria, and Shell Nigeria Exploration and Production Company Limited (SNEPCo), with the transaction valued at $510 million.
OML118 is one of Nigeria’s prominent offshore oil assets, situated approximately 120 kilometers off the coast of the Niger Delta. The block is anchored by the Bonga field, which commenced production in 2005, and is being expanded with the Bonga North development that kicked off in 2024. The PSC is operated by SNEPCo, which holds a controlling 55 percent stake, in partnership with Esso Exploration and Production Nigeria (20 percent), TotalEnergies EP Nigeria (12.5 percent), and Nigerian Agip Exploration (12.5 percent).
TotalEnergies’ share of production from the block, primarily crude oil, amounted to around 11,000 barrels of oil equivalent per day in 2024. However, the company is now pivoting toward assets that align more closely with its evolving strategy of minimizing costs and environmental impact.
According to the official statement issued on Thursday, the divestment is still subject to customary closing conditions and regulatory approvals. The move marks another step in TotalEnergies’ broader plan to enhance the sustainability and profitability of its upstream operations.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, emphasized that the company is actively restructuring its portfolio to prioritize assets that offer lower technical complexity, reduced emissions, and stronger financial resilience. He stated that the company remains committed to strengthening its position in operated gas and offshore oil projects, particularly in areas where it has more operational control and strategic alignment.
“The company is focusing on its operated gas and offshore oil assets and is currently progressing the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG,” Terraz noted. The Ubeta gas project is seen as a cornerstone in TotalEnergies’ effort to reinforce its role in Nigeria’s liquefied natural gas (LNG) supply chain, which remains a key area of growth and investment for the company.
This transaction not only underscores TotalEnergies’ commitment to optimizing its asset base but also reflects a broader industry trend, where energy majors are increasingly shedding non-core or non-operated assets in favor of more strategic, future-oriented investments. By narrowing its focus, TotalEnergies aims to bolster its long-term competitiveness in a rapidly evolving global energy landscape.
