Standard Chartered advises TotalEnergies on OML118 divestment

Standard Chartered has successfully served as the exclusive financial adviser to TotalEnergies in the divestment of its 12.5% non-operated interest in the OML118 Production Sharing Contract (PSC) to Shell Nigeria Exploration and Production Company Limited (SNEPCo).

The transaction aligns with TotalEnergies’ strategy to streamline its upstream portfolio by focusing on low-cost, low-emission assets.

The OML118 PSC, located 120km south of the Niger Delta in deep offshore waters, is operated by SNEPCo (55%), with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%) as partners.

The asset includes the prolific Bonga field, which has been operational since 2005 and has produced over one billion barrels of crude oil, as well as the Bonga North field, for which a Final Investment Decision was secured in 2024.

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Standard Chartered coordinated a competitive sale process, providing comprehensive advisory services to TotalEnergies. The transaction, subject to customary regulatory approvals, supports TotalEnergies’ goal of lowering its cash breakeven and enhancing portfolio efficiency.

This deal reinforces Standard Chartered’s position as a leading mergers and acquisitions adviser in the energy sector across Asia, Africa, and the Middle East. Over the past 18 months, the bank has completed nine transactions spanning upstream, midstream, and downstream sectors.

A spokesperson for Standard Chartered stated, “This transaction underscores our expertise in navigating complex energy deals, delivering strategic value for our clients, and strengthening our footprint in Africa’s energy market.”