TotalEnergies Announced Exit from Bonga Field, Nigeria

SEATTLE (Oil Monster): TotalEnergies announced that it has signed an agreement to divest its non-operated 12.5% interest in the OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Limited (SNEPCo) in a transaction valued $510 million. The move marks a significant shift in the company’s upstream strategy in connection with its Nigerian assets.

The transaction is subject to satisfaction of customary conditions, including necessary regulatory approvals from Nigerian authorities.

The divestment will allow TotalEnergies to reallocate capital and resources towards other projects that are in line with its previously stated strategic objectives, which provides impetus to cost efficiency and carbon savings. The realignment of the Nigerian portfolio will help the company to boost its financial resilience and focus on lower-carbon opportunities, in line with the broader trend during recent days.

The OML 118 PSC, located around 120 kilometres south of the Niger Delta is home to the operating Bonga field and the Bonga North field, which is currently under development. The other partners include Esso Exploration and Production Nigeria and Nigerian Agip Exploration which holds 20% and 12.5% stake respectively.