French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria’s Bonga oil field to a subsidiary of Shell for $510 million.
The divestment, conducted through TotalEnergies EP Nigeria, was announced in an official statement from the company.
The deal will increase Shell’s ownership in the Bonga oil field to 67.5% once finalized, underscoring its continued focus on offshore oil production in Nigeria, even as it scales back onshore operations affected by oil spills.
“TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven,” said Nicolas Terraz, President Exploration & Production at TotalEnergies.
“In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG.”
Shell recently sold certain onshore assets to Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, in a deal worth up to $2.4 billion.
Bonga field is set for a major expansion.
In a move to boost output, Bonga’s stakeholders approved a field extension project aimed at adding 110,000 barrels of oil equivalent per day, with first oil expected by the end of the decade, according to Reuters.
The field’s floating production, storage, and offloading (FPSO) vessel has a total processing capacity of 225,000 barrels per day.
“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” said Shell’s upstream chief Peter Costello.
Esso Exploration and Production Nigeria, a subsidiary of Exxon, holds a 20% stake in the Bonga field, while Agip, owned by Oando, controls 12.5%.
The transaction is pending regulatory approvals and is anticipated to be finalized by year-end.
TotalEnergies has been present in Nigeria for more than 60 years and currently employs more than 1,800 people across different business segments.
Nigeria is one of the main contributors to TotalEnergies’ hydrocarbon production, with 209,000 barrels of oil equivalent per day produced in 2024.
