1. TotalEnergies sells 12.5% stake in OML118 for $510 million. 2. OML118 primarily produces oil, contributing 11,000 boe/d in 2024. 3. Sale reflects TotalEnergies' strategy to focus on low-cost, low-emission assets. 4. Company continues development of Ubeta project for Nigerian LNG supply. 5. TotalEnergies has been active in Nigeria for over 60 years.
The sale enhances liquidity and aligns with TotalEnergies' low-cost strategy, similar to past divestitures that optimized their asset portfolio. Previous asset sales have resulted in positive stock price movements.
The strategic divestment indicates improved focus on profitable operations, which is crucial for investor sentiment.
The immediate transaction value impacts cash flow readily, unlike long-term projects where benefits accrue slowly, as seen in similar asset sales historically.
PARIS--(BUSINESS WIRE)-- TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announces that its subsidiary TotalEnergies EP Nigeria (TEPNG) signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) for an amount of $510 million.
OML118 PSC 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%). Located deep offshore at 120 km south of the Niger Delta in Nigeria, it contains the Bonga field, which started production in 2005, as well as the Bonga North field, the development of which started in 2024. Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d in Company share in 2024.
Completion of the transaction is subject to customary conditions, including regulatory approvals.
"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 breakeven," said Nicolas Terraz, President Exploration & Production at TotalEnergies. “In Nigeria, 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.”
About TotalEnergies in Nigeria
TotalEnergies has been present in Nigeria for more than 60 years and employs today more than 1,800 people across different business segments. Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production with 209,000 boe/d produced in 2024. TotalEnergies also operates an extensive distribution network which includes about 540 service stations in the country. In all its operations, TotalEnergies is particularly attentive to the socio-economic development of the country and is committed to working with local communities.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas, biogas and low-carbon hydrogen, renewables and electricity. Our more than 100,000 employees are committed to providing as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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