The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has accredited TotalEnergies SE’s sale of its 12.5 p.c stake in Oil Mining Lease (OML) 118, which incorporates the manufacturing Bonga discipline, to Shell PLC and Eni SpA for $510 million.
“Based on the main points of the settlement, TotalEnergies will switch 10 p.c of its curiosity to SNEPco [Shell Nigeria Exploration and Production Co Ltd] at a price of $408 million whereas NAE [Eni’s Nigerian Agip Exploration Ltd] can pay $102 million for the remaining 2.5 p.c”, the NUPRC mentioned in an announcement on its web site.
The transaction has raised operator Shell’s stake to 65 p.c and Eni’s to fifteen p.c, primarily based on the NUPRC assertion. Exxon Mobil Corp retains 20 p.c via Esso Exploration and Manufacturing Nigeria Ltd.
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Shell’s announcement of the deal on Could 29 mentioned it could purchase everything of TotalEnergies’ curiosity. That may have resulted in a 67.5 p.c stake for Shell.
The transaction stays topic to a ministerial consent, the NUPRC mentioned. “The fee subsequently expects SNEPco and NAE to pay 5 p.c and two p.c respectively of the transaction purse on the overall worth of $510 million as premium on ministerial consent and processing charges”, it mentioned.
“The assignees are additionally to offer an endeavor in favor of the fee that they may bear all of the decommissioning and abandonment liabilities and the host neighborhood liabilities owed by TotalEnergies”.
“SNEPco and NAE have demonstrated each technical and managerial competence to optimally contribute to the upstream operations (discover, develop and produce) in OML 118″, the NUPRC mentioned.
“Primarily based on the shows and paperwork submitted, there’s clear proof that they’ve entry to funding to satisfy their monetary obligations”, it added.
Situated in deep waters 120 kilometers (74.56 miles) south of the Niger Delta, OML118 incorporates the Bonga discipline, which began manufacturing 2005 and has a capability of 225,000 barrels of oil per day (bopd), and the Bonga North discipline, which the consortium accredited 2024. The companions anticipate to place Bonga North into manufacturing by 2030 with a capability of 110,000 bopd, Shell mentioned December 16, 2024, asserting the FID (ultimate funding choice).
TotalEnergies mentioned the divestment of its OML 118 possession is a part of its efforts to refocus funding within the West African nation to its operated gasoline and offshore oil belongings.
Earlier this 12 months Shell accomplished the sale of its subsidiary within the Niger Delta because it additionally concentrates on deepwater and built-in gasoline belongings. Within the $1.3-billion transaction, the consortium Renaissance Africa took over Shell Petroleum Improvement Firm of Nigeria Ltd (SPDC) and consequently acquired a 30 p.c working curiosity within the SPDC Joint Enterprise.
The SPDC JV holds 15 onshore oil mining leases (OMLs) and three shallow-water OMLs, in response to Shell.
The NUPRC had held off the divestment of SPDC to evaluate environmental liabilities, in response to an announcement by the fee April 29, 2024.
To contact the creator, e mail jov.onsat@rigzone.com
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