TotalEnergies has sealed a major divestment deal in Nigeria’s oil sector, offloading its 12.5% non-operating stake in the OML 118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Limited (SNEPCo). The $860 million transaction is part of the French energy giant’s broader plan to streamline its upstream portfolio by focusing on lower-cost, lower-emission assets.

Standard Chartered Bank acted as the sole financial adviser to TotalEnergies, managing the competitive sale process and providing strategic advice from start to finish.

OML 118 is located 120 kilometers offshore from the Niger Delta and includes the prolific Bonga field, which has produced more than a billion barrels of oil since it came on stream in 2005. It also covers the Bonga North development, which secured final investment approval in 2024.

The asset is operated by SNEPCo, which holds a 55% interest. Other stakeholders include Esso Exploration and Production Nigeria (20%), Nigerian Agip Exploration (12.5%), and until the sale closes, TotalEnergies EP Nigeria (12.5%).

This divestment is part of TotalEnergies’ ongoing efforts to rebalance its upstream investments, prioritizing assets that offer lower technical complexity and improved returns. The deal is still subject to regulatory clearance and other standard closing conditions.

Standard Chartered highlighted the deal as a reflection of its growing strength in energy mergers and acquisitions across Africa, the Middle East, and Asia, having now completed nine similar transactions in the past 18 months across various segments of the oil and gas industry.