Oil & Gas

Shell has announced that it will acquire TotalEnergies’ 12.5% non-operated stake in the deepwater Bonga oilfield located offshore Nigeria. The acquisition will be executed through Shell Nigeria Exploration and Production Company (SNEPCo), Shell’s local subsidiary operating the Bonga oilfield.

This move will increase Shell’s interest in the Oil Mining Lease (OML) 118 Production Sharing Contract, which covers the Bonga field, from 55% to 67.5%. Shell emphasized that this acquisition supports its ongoing commitment to develop Nigeria’s offshore oil resources.

The Bonga oilfield, which began production in 2005, has a production capacity of 225,000 barrels of oil per day. The $510 million deal reflects TotalEnergies’ strategic decision to streamline its portfolio by focusing on operated gas and offshore oil assets in Nigeria.

Nicolas Terraz, President of Exploration & Production at TotalEnergies, stated that the sale aligns with the company’s goal to high-grade its portfolio and prioritize its core operations.

Shell, meanwhile, is reinforcing its presence in Nigeria’s deepwater sector. The company recently approved the final investment decision for the Bonga North development, which will be tied back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility.

With an estimated 300 million barrels of recoverable oil equivalent, the Bonga North project is expected to deliver a peak output of 110,000 barrels per day, with first oil projected before the end of the decade.

Commenting on the acquisition, Peter Costello, Shell’s President of Upstream, noted that the deal builds on the momentum of last year’s Bonga North decision and strengthens Shell’s upstream portfolio in Nigeria.

The Nigerian government, for its part, has been encouraging international oil companies to boost collaboration and increase output, as the country continues to struggle to meet its OPEC production targets. Shell’s investment may be seen as a step toward revitalizing Nigeria’s oil production capacity.