French energy giant TotalEnergies has agreed to sell its 12.5% stake in the offshore Bonga oilfield to Shell for $510 million, the company announced on Thursday. The transaction, subject to regulatory approvals, is expected to close by the end of the year.
The deal will increase Shell’s interest in the deep-water Bonga field to 67.5%, further solidifying its position as the field’s operator and reaffirming its long-term commitment to offshore oil production in Nigeria.
The sale comes as Shell shifts its focus to more stable and productive offshore operations, following the recent divestiture of its troubled onshore assets to Renaissance, a consortium comprising four Nigerian firms and an international energy company.
Bonga, which began production in 2005, was Nigeria’s first deep-water oilfield. It remains a strategic asset, with a floating production, storage, and offloading (FPSO) vessel capable of producing up to 225,000 barrels per day. Last year, stakeholders approved a field extension project aimed at boosting output by an additional 110,000 barrels of oil equivalent per day, with first production from the expansion expected before 2030.
“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” said Peter Costello, Shell’s Upstream Director.
Following the transaction, the Bonga partnership will consist of Shell (67.5%), ExxonMobil’s subsidiary Esso Exploration and Production Nigeria (20%), and Oando’s Nigerian Agip Oil Company (12.5%).
The deal underscores growing investor interest in Nigeria’s offshore sector, which is seen as less vulnerable to security and environmental risks than onshore operations.
Written By Rodney Mbua
