French multinational TotalEnergies announced on Thursday its agreement to sell its 12.5% interest in the Bonga offshore oilfield located in Nigerian waters to Shell, the operator of the field, in a deal valued at $510 million.
With this acquisition, Shell will increase its ownership share in the Bonga oilfield to 67.5%, reinforcing its strategic focus on offshore oil production in Nigeria. This move comes after Shell divested its Nigerian onshore assets, which were sold to Renaissance, a consortium made up of four Nigerian companies alongside an international energy group, marking a shift in Shell’s asset portfolio within the country.
In 2023, the consortium managing the Bonga field approved a development plan to extend production capacity. The extension project is designed to add approximately 110,000 barrels of oil equivalent per day (boe/d), with initial production expected to start before the decade ends. The existing floating production storage and offloading (FPSO) vessel servicing Bonga has a processing capacity of 225,000 barrels per day, making it a significant asset in Nigeria’s offshore oil sector.
Peter Costello, Shell’s Executive Vice President for Upstream, emphasized the strategic importance of the acquisition. He noted that this investment will bolster Shell’s portfolio by sustaining liquid hydrocarbon production and supporting growth initiatives in deepwater operations off the Nigerian coast.
Other key stakeholders in the Bonga field include ExxonMobil’s Nigerian subsidiary, Esso Exploration and Production Nigeria, which owns 20%, and Oando’s Agip, which holds another 12.5% stake.
The sale is subject to regulatory approvals and is anticipated to be completed by the end of this year, pending the necessary clearances.
This transaction highlights ongoing shifts in asset ownership among international oil majors operating in Nigeria, reflecting broader trends in the energy sector as companies adjust portfolios to optimize operations and respond to evolving market dynamics.