French oil and gas company, TotalEnergies, on Thursday in Paris, France announced the signing of an agreement by its subsidiary TotalEnergies EP Nigeria (TEPNG) with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) to sell of its non-operated 12.5% interest in the Oil Mining License (OML) 118 Production Sharing Contract (PSC) for $510m.

Completion of the transaction, the company said in a statement, is subject to customary conditions, including regulatory approvals.

OML118 PSC, located deep offshore at 120 km south of the Niger Delta in Nigeria, is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).

Production from the OML118 contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024 is mainly oil, and represents about 11,000 boe/d in Company share in 2024.

Commenting on the deal, Nicolas Terraz, President Exploration & Production at TotalEnergies, said “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 break even.”

In Nigeria, according to him, the “company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG.”