British oil giant, Shell Plc, has agreed to purchase TotalEnergies’ 12.5% stake in Nigeria’s Bonga oilfield for $510 million, a strategic move that increases its interest in the country’s deep-water sector.
This was announced in a news release from Shell today seen by Energy in Africa.
The acquisition will increase Shell’s ownership in the field to 67.5% from 55%, reinforcing its stake in the OML 118 Production Sharing Contract (OML 118 PSC), an oil mining lease offshore Nigeria that includes the Bonga field.
The agreement comes as Shell seeks to grow its combined integrated gas and upstream total production by 1% annually through 2030.
The Bonga oilfield is located offshore Nigeria.
Last year, the owners of Bonga approved an extension of the field—known as Bonga North.
The subsea tie-back will add 110,000 barrels of oil equivalent per day, with the first oil expected to flow by the end of the decade.
The field’s floating production vessel currently has a capacity of 225,000 barrels per day.
Other stakeholders in the Bonga oilfield include ExxonMobil (through Esso), holding a 20% share, and Oando’s Agip, with a 12.5% stake.
This deal follows Shell’s recent divestment of its onshore assets (SPDC) in Nigeria to the Renaissance Group, a consortium of four indigenous companies and one international energy firm.
TotalEnergies had previously sold its remaining 10% stake in the iconic asset to Chappal Energies for $860 million in July 2024.
The $2.4 billion deal with the Renaissance Group marked Shell’s strategic shift towards offshore investments, particularly in the broader Bonga North, where the firm has planned to commit up to $5 billion.
Shell has now boosted its operatorship in the Bonga project by acquiring TotalEnergies’ only remaining interest.
Shell’s upstream chief, Peter Costello, described the acquisition as a major boost that supports long-term production growth in the company’s upstream operations.
“This acquisition brings another significant investment in Nigeria’s deep water that contributes to sustained liquids production and growth in our upstream portfolio,” Costello said.
Shell stated that the transaction is subject to regulatory approvals and is anticipated to close by the end of 2025.
This marks another major win for the Nigerian government, which in the last two years has attracted substantial investment into the country’s offshore oil sector.
