WorldStage– Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell plc, has completed the previously announced agreement and increased its stake in the OML 118 Production Sharing Contract (OML 118 PSC) from 55% to 65%.
Following our final investment decision on Bonga North last year, this acquisition represents another significant investment in Nigeria deep-water, and is part of Shell’s strategy to further invest in competitive existing assets that contribute to sustained liquids production and growth in our Upstream portfolio.
It will be recalled that Nigerian Agip Exploration Ltd, a subsidiary of Eni S.p.A, exercised its pre-emption rights to acquire an additional 2.5% interest in the OML 118 PSC, reducing the 12.5% interest that SNEPCo had agreed to acquire to 10%.
SNEPCo (65%) operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), and Nigerian Agip Exploration Ltd. (15%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
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.
