Shell Expands Stake in OML 118 with Acquisition of TotalEnergies’ 12.5% Share

Shell Expands Stake in OML 118 with Acquisition of TotalEnergies’ 12.5% Share

(IN BRIEF) Shell Nigeria Exploration and Production Company (SNEPCo) has agreed to acquire TotalEnergies EP Nigeria Limited’s 12.5% stake in the OML 118 Production Sharing Contract, increasing Shell’s interest in the offshore Nigerian field to 67.5%. The acquisition enhances Shell’s Upstream portfolio and supports sustained liquids production. The Bonga field, part of OML 118, has produced over one billion barrels of crude oil and is expected to see further development with the Bonga North project, set to deliver additional production by the end of the decade.

(PRESS RELEASE) LONDON, 29-May-2025 — /EuropaWire/ — 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 (OML 118 PSC), an offshore oil mining lease in Nigeria that includes the Bonga field. Following the completion of this transaction, Shell’s interest in the OML 118 PSC will increase from 55% to 67.5%.

SNEPCo is the operator of the OML 118 PSC and currently produces oil from the Bonga field using the Bonga Floating Production Storage and Offloading (FPSO) vessel. The company also announced the development of the Bonga North field in December 2024.

Peter Costello, Shell’s President of Upstream, commented, “Following our final investment decision on Bonga North last year, this acquisition represents another significant investment in Nigeria’s deep-water sector. It contributes to sustained liquids production and supports growth in our Upstream portfolio.”

The transaction is subject to regulatory approvals and other customary closing conditions. The deal is expected to be finalized before the end of this year.

About the OML 118 PSC:

Currently, SNEPCo operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies EP Nigeria Ltd. (12.5%) on behalf of the Nigerian National Petroleum Company Limited (NNPC). After the completion of this acquisition, SNEPCo will hold a 67.5% stake in OML 118 PSC, while Esso Exploration and Production Nigeria Ltd. will maintain a 20% stake and Nigerian Agip Exploration Ltd. will hold 12.5%.

This strategic investment is aligned with Shell’s broader goals to grow its Integrated Gas and Upstream production by 1% annually until 2030. It will also help sustain Shell’s liquids production target of 1.4 million barrels per day.

Bonga Field Overview:

The Bonga field, located in OML 118 at water depths exceeding 1,000 meters, is a deep-water development that began production in 2005, with a capacity of 225,000 barrels of oil per day. The field reached a significant milestone in 2023 by producing its one-billionth barrel of crude oil.

In December 2024, Shell announced the final investment decision for the Bonga North project, a subsea tie-back to the Bonga FPSO. Bonga North has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent and is expected to reach peak production of 110,000 barrels of oil per day, with first oil anticipated by the end of the decade. These figures represent total gross recoverable resources and are classified as 2P (proven and probable) according to the Society of Petroleum Engineers’ Petroleum Resources Management System.

Notes to editors

• SNEPCo (55%) operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies EP Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
• After completion of the transaction, SNEPCo will hold a 67.5% stake, alongside Esso Exploration and Production Nigeria Ltd. (20%) and Nigerian Agip Exploration Ltd. (12.5%).
• This targeted investment contributes towards growing Shell’s combined Integrated Gas and Upstream total production by 1% per year to 2030 and contributes towards sustaining our 1.4 million barrels per day of liquids production.
• The Bonga field is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production from Bonga began in 2005, with a capacity to produce 225,000 barrels of oil per day. The Bonga field produced its one-billionth barrel of crude oil in 2023.
• In December 2024, Shell announced a final investment decision on Bonga North, a subsea tie-back to the Bonga FPSO. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent and is expected to reach peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
• The estimated peak production and recoverable resources mentioned above are 100% total gross figures. The recoverable resources are currently classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.

Cautionary Note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; “aspire”, “aspiration”, ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; “desire”; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; “vision”; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks, including climate change; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including tariffs and regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, regional conflicts, such as the Russia-Ukraine war and the conflict in the Middle East, and a significant cyber security, data privacy or IT incident; (n) the pace of the energy transition; and (o) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2024 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement May 29, 2025. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s net carbon intensity

Also, in this announcement we may refer to Shell’s “net carbon intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “net carbon intensity” or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-zero emissions target

Shell’s operating plan and outlook are forecasted for a three-year period and ten-year period, respectively, and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next three and ten years. Accordingly, the outlook reflects our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plan and outlook cannot reflect our 2050 net-zero emissions target, as this target is outside our planning period. Such future operating plans and outlooks could include changes to our portfolio, efficiency improvements and the use of carbon capture and storage and carbon credits. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans and outlooks to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-Looking non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as adjusted earnings and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

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SOURCE: SHELL