Shell acquires TotalEnergies’ stake in Bonga oilfield for $510m

Shell Nigeria Exploration and Production Company (SNEPCo), which operates the Bonga field, has signed a $150 million deal to acquire TotalEnergies’ 12.5 percent stake in Oil Mining Lease (OML) 118, the offshore block that includes the Bonga oilfield.

Upon completion of the transaction, Shell’s interest in OML 118 will rise from 55 percent to 67.5 percent.

Bonga, Nigeria’s first deepwater oil project, began production in 2005 and has a capacity of 225,000 barrels per day.

According to Nicolas Terraz, president of Exploration & Production at TotalEnergies, the divestment aligns with the company’s strategy to streamline its portfolio and focus on assets where it has operational control, particularly in gas and offshore oil.

Shell’s increased stake comes months after it greenlit the Bonga North project, a major deepwater development that will be tied back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility.

The Bonga North project, estimated to hold over 300 million barrels of oil equivalent, is expected to reach its peak production of 110,000 barrels per day, with first oil anticipated before the end of the decade.

Commenting on the acquisition, Peter Costello, Shell’s president for upstream operations, said, “Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deepwater that contributes to sustained liquids production and growth in our Upstream portfolio.”

Faith Esifiho

Faith Esifiho is an Energy correspondent at BusinessDay, covering Nigeria's electricity sector, oil and gas industry, and energy policy. She reports on power outages, electricity tariffs, gas sector reforms, and the broader challenges facing the country's energy transition. She specializes in data-led reporting and human-angle stories that examine how energy policies affect everyday Nigerians and also tracks trends in the power sector, analyses regulatory changes, and investigates the impact of subsidy reforms and pricing policies.