Total To Sell 12.5% Stake In Nigerian Oil Block

French oil major, Total is seeking to sell its 12.5 per cent stake in the giant Bonga deepwater oilfield off the coast of Nigeria, in an effort to adjust the energy company’s Africa portfolio amid a broad expansion.

Reuters quoted banking and industry sources as saying that the stake in Oil Mining Lease (OML) 118, which is located some 120 kilometres (75 miles) off the Niger Delta, is valued at up to $750 million.

Investment bank, Rothschild, is said to be running the sale process for the oil major.

Rothschild and a spokeswoman for Total declined to comment.

OML 118 is operated by Royal Dutch Shell, which holds a 55 per cent interest. Exxon Mobil holds a 20 per cent stake in the block, while Italy’s Eni and Total each hold 12.5 per cent.

The sale process is part of Total’s plan to sell $5 billion of assets around the world by 2020, the sources said.

The block includes the Bonga field, Nigeria’s first deepwater project which started in 2005 and produced around 225,000 barrels of oil and 150 million standard cubic feet of gas per day at its peak.

Output from the block is planned to grow sharply with the $10 billion development of the Bonga Southwest field which is expected to produce up to 200,000 bpd, roughly 10 per cent of Nigeria’s current oil production.

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