Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell Plc, has signed an agreement with TotalEnergies EP Nigeria Limited to acquire its 12.5 per cent stake in the OML 118 Production Sharing Contract (PSC).
Shell confirmed the divestment in a statement on Monday, saying the transaction, when completed, will increase its interest in the OML 118 PSC from 55 per cent to 67.5 per cent.
SNEPCo is the operator under the OML 118 PSC. It currently produces from the Bonga field via the Bonga Floating Production Storage and Offloading (FPSO) vessel and announced the development of the Bonga North field in December 2024.
Shell’s President, Upstream Peter Costello, ”Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria’s deep-water that contributes to sustained liquids production and growth in our Upstream portfolio. ”
The transaction is subject to regulatory approvals and other closing conditions. The transaction is expected to be completed before the end of this year.
The acquisition contributes to sustained liquids production and growth in Shell’s Upstream portfolio, aligning with the company’s goal to grow its combined Integrated Gas and Upstream total production by one per cent per year to 2030.
