Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of the UK’s Shell, has signed an agreement with France’s TotalEnergies EP Nigeria Ltd to acquire its 12.5% stake in the OML 118 Production Sharing Contract (OML 118 PSC), an oil mining lease offshore Nigeria that includes the 225 kb/d Bonga oil field.
With this acquisition, Shell’s interest in the OML 118 PSC will rise from 55% to 67.5%. SNEPCo, the operator of the project, will retain its stake alongside Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%).
Production from the 225 kb/d Bonga oil field began in 2005. In December 2024, Shell also announced a final investment decision (FID) on Bonga North, a subsea tie-back to the Bonga FPSO. Bonga North currently has an estimated recoverable resource volume of more than 300 mboe and is expected to reach peak production of 110 kb/d, with first oil anticipated by the end of the decade.