BAKU, Azerbaijan, May 29. 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% stake in the OML 118 Production Sharing Contract (PSC) offshore Nigeria, Trend reports.
According to the producer, the contract covers the Bonga field, among other assets.
Once completed, the deal will increase Shell’s interest in the OML 118 PSC from 55% to 67.5%. SNEPCo operates the block and currently produces oil from the Bonga field via the Bonga Floating Production Storage and Offloading (FPSO) vessel. In December 2024, Shell announced the development of the Bonga North field.
Peter Costello, Shell’s President of Upstream, noted that the acquisition follows the final investment decision on Bonga North last year and represents a significant investment in Nigeria’s deep-water sector, supporting sustained production and growth in Shell’s upstream portfolio.
The transaction is pending regulatory approval and other customary closing conditions, with completion expected by the end of 2025.