* 12.5% stake in OML 118 could fetch up to $750 million
* Rothschild hired to run sale process -sources
* Block includes giant Bonga field
By Ron Bousso
LONDON, Nov 6 (Reuters) - Total TOTF.PA is seeking to sell
its 12.5% stake in a major deepwater oilfield off the coast of
Nigeria, industry and banking sources said, in an effort to
adjust the energy company's Africa portfolio amid a broad
expansion.
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, according to two of the sources.
Investment bank Rothschild is running the sale process for
Total, the sources said.
A spokeswoman for Total declined to comment. Rothschild
declined to comment.
OML 118 is operated by Royal Dutch Shell RDSa.L , which
holds a 55% interest. Exxon Mobil XOM.N holds a 20% stake in
the block, while Italy's Eni ENI.MI and Total each hold 12.5%.
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% of Nigeria's
current oil production.
Nigeria's vast oil resources have attracted foreign oil
companies for decades but changes to the country's oil revenue
laws as well as an unexpected tax levy over the past year could
make investments in offshore projects less attractive.
Shell and its partners were expected to make an investment
decision on Bonga Southwest last year but uncertainty over its
fiscal terms with the Nigerian government have delayed the
process. Shell in February launched a tender for bids for a 225,000
bpd floating production, storage and offloading vessel for the
new development phase. It has since pushed back the schedule for
the bids.
The sale comes as Total prepares to expand its operations in
Africa after agreeing earlier this year to buy Anadarko's Africa
portfolio for $8.8 billion as part of its acquisition by U.S.
rival Occidental Corp OXY.N . Total in January started production from the Egina oilfield
off Nigeria's coast which is expected to plateau at 200,000 bpd
of oil.