Victor EzejaShell 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 (OML 118 PSC).
OML 118 PSC is an oil mining lease located in Niger Delta, offshore Nigeria that includes the Bonga field.
Join our WhatsApp ChannelIn a statement released on Thursday, 29 May, Shell said the agreement was signed on Wednesday, 28 May 2025, adding that the deal is valued at $510 million.
Currently, the OML 118 PSC is operated by SNEPCo, which has 55 per cent stake in partnership with Esso Exploration and Production Nigeria Ltd., which has 20 per cent, Nigerian Agip Exploration Ltd. (12.5 per cent), and TotalEnergies EP Nigeria Ltd. (12.5 per cent), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
After completion of the transaction, SNEPCo will hold a 67.5 per cent stake, alongside Esso Exploration and Production Nigeria Ltd. (20 per cent) and Nigerian Agip Exploration Ltd. (12.5 per cent) on behalf of the Nigerian National Petroleum Company Limited (NNPCL).
“Upon completion, this transaction increases Shell’s interest in the OML 118 PSC from 55% to 67.5%, the company said in a statement signed by its Communications Manager, Gladys Afam-Anadu.
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The statement further revealed that the transaction, which is expected to be completed before the end of this year, is subject to regulatory approvals and other closing conditions.
According to the company, the investment will help to increase Shell’s combined Integrated Gas and Upstream total output by 1 per cent per year to 2030, as well as sustain its 1.4 million barrels per day of liquids production.
The Bonga field is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production from Bonga began in 2005, with a capacity to produce 225,000 barrels of oil per day.
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It would be recalled that Shell announced the final investment decision for Bonga North, a subsea tie-back to the Bonga Floating Production Storage and Offloading (FPSO), in December 2024.
With an estimated recoverable resource volume of over 300 million barrels of oil equivalent, Bonga North is predicted to reach peak production of 110,000 barrels per day. The first oil is expected to be produced by the end of the decade.
“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,” said Peter Costello, Shell’s President, Upstream.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
