TOTALENERGIES SELLS STAKE IN BONGA FIELD TO SHELL
GREATRIBUNETVNEWS–TotalEnergies has announced the sale of its 12.5% stake in the OML118 Production Sharing Contract, which includes the Bonga field, to Shell Nigeria Exploration and Production Company Ltd. This strategic decision is part of TotalEnergies’ efforts to optimize its portfolio and focus on core assets.
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Key Details:
– Stake Sale: TotalEnergies EP Nigeria has signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract.
– Bonga Field: The Bonga field is a significant oil and gas field located offshore Nigeria, and the sale marks a significant transaction in the country’s energy sector.
– Portfolio Optimization: The sale is part of TotalEnergies’ strategy to optimize its portfolio and focus on core assets, ensuring the company’s long-term sustainability and growth.
Industry Impact:
– Energy Sector Dynamics: The sale highlights the dynamic nature of the energy sector, where companies continually assess and adjust their portfolios to adapt to changing market conditions.
– Investment Opportunities: The transaction may create new investment opportunities in the energy sector, as companies look to acquire strategic assets and expand their presence in key markets
In a statement on Thursday, the company disclosed that the deal is valued at $510m.
OML118 PSC is operated by SNEPCo (55 per cent), in partnership with Esso Exploration and Production Nigeria (20 per cent), TotalEnergies EP Nigeria (12.5 per cent), and Nigerian Agip Exploration (12.5 per cent).
“TotalEnergies announces that its subsidiary, TotalEnergies EP Nigeria, signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5 per cent interest in the OML118 Production Sharing Contract for an amount of $510m,” the company disclosed.
Located deep offshore at 120 km south of the Niger Delta in Nigeria, it contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024.
The statement explained that production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 barrels of oil equivalent per day in the Company’s share in 2024.
According to TotalEnergies, the completion of the transaction is subject to customary conditions, including regulatory approvals.
The President of Exploration & Production at TotalEnergies, Nicolas Terraz, said the firm would now focus on assets with low technical costs and emissions.
Terraz stated that it company also intends to lower its cash breakeven.
He added that 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.
“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.
“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 stated.
