French energy major TotalEnergies has agreed to sell its 12.5% stake in Nigeria’s offshore Bonga oilfield to Shell for $510 million, the companies said on Thursday.
This move will boost the buyer’s interest in the deepwater asset to 67.5%.
The deal, which is subject to regulatory approvals, highlights Shell’s commitment to Nigeria’s offshore sector, even as it exits its onshore operations. Earlier this year, the buyer agreed to sell its Nigerian onshore assets to Renaissance, a consortium of four local companies and an international energy group.
Bonga, operated by the buyer’s Nigeria Exploration and Production Company (SNEPCo), was Nigeria’s first deepwater oil project and began production in 2005. Its floating production, storage and offloading (FPSO) vessel has a capacity of 225,000 barrels per day (bpd).
The field is undergoing a major expansion under the Bonga North project, which is expected to add 110,000 barrels of oil equivalent per day, with first oil projected before the end of the decade.
“This acquisition brings another significant investment in Nigeria’s deep-water that contributes to sustained liquids production and growth in our upstream portfolio,” said Peter Costello, Shell’s head of upstream.
The French major said the divestment aligns with its strategy to prioritise assets where it has operational control, particularly in gas and offshore developments.
The remaining interests in the asset are held by Esso Exploration and Production Nigeria, a unit of ExxonMobil, with 20%, and Oando’s Nigerian Agip Exploration with 12.
