TotalEnergies Sells Bonga Oilfield Stake To Shell For $510 Million In Strategic Shift.
French energy giant TotalEnergies has announced the sale of its 12.5% non-operated stake in Nigeria’s Bonga oilfield to Shell for $510 million (£400 million). The deal, revealed on Thursday, 29 May 2025, marks a strategic pivot for TotalEnergies as it refocuses its portfolio on lower-cost, lower-emission assets, while Shell bolsters its deep-water presence in Nigeria.
The transaction involves TotalEnergies’ subsidiary, TotalEnergies EP Nigeria (TEPNG), divesting its interest in the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC), which encompasses the Bonga field, located 120 kilometres south of the Niger Delta in Nigeria. The Bonga field, operational since 2005, is a cornerstone of Nigeria’s deep-water oil production, with a floating production, storage, and offloading (FPSO) vessel capable of processing 225,000 barrels per day (bpd). In 2024, the OML 118 PSC contributed approximately 11,000 barrels of oil equivalent per day (boe/d) to TotalEnergies’ output.
Shell, through its subsidiary Shell Nigeria Exploration and Production Company Ltd (SNEPCo), currently operates the OML 118 PSC with a 55% stake. Following the acquisition, Shell’s ownership will rise to 67.5%, reinforcing its commitment to offshore oil production in Nigeria. Other partners in the venture include Esso Exploration and Production Nigeria, a subsidiary of Exxon, with a 20% stake, and Nigerian Agip Exploration, owned by Oando, holding 12.5%. The deal remains subject to customary conditions, including regulatory approvals from Nigerian authorities, with completion expected by the end of 2025.
“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 chief, in a statement. The move aligns with Shell’s recent focus on the Bonga field, particularly after last year’s final investment decision on the Bonga North project. This subsea tie-back to the existing FPSO is anticipated to yield 110,000 boe/d at peak production, with first oil expected by the end of the decade and estimated recoverable resources exceeding 300 million barrels of oil equivalent.
For TotalEnergies, the divestment reflects a broader strategy to streamline its upstream portfolio. Nicolas Terraz, President of Exploration & Production at TotalEnergies, commented, “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.” In Nigeria, the company is shifting its attention to operated gas and offshore oil assets, notably advancing the Ubeta project, designed to sustain gas supply to Nigeria LNG.
The sale comes amid a wider trend of international oil companies (IOCs) recalibrating their presence in Nigeria. Shell recently offloaded its spill-plagued onshore assets to Renaissance, a consortium of four local firms and an international energy group, for up to $2.4 billion (£1.9 billion). TotalEnergies, too, divested its 10% stake in the SPDC joint venture to Chappal Energies for $860 million (£675 million) in July 2024, though it retained economic interest in gas assets to support Nigeria LNG.
TotalEnergies has been a key player in Nigeria for over 60 years, employing more than 1,800 people and operating an extensive network of approximately 540 service stations. In 2024, the country accounted for 209,000 boe/d of TotalEnergies’ hydrocarbon production, underscoring Nigeria’s importance to the firm despite this divestment.
The Bonga field transaction highlights contrasting strategies: Shell doubles down on Nigeria’s deep-water potential, while TotalEnergies sharpens its focus on gas and sustainable offshore operations. As the deal awaits approval, it signals a dynamic shift in Nigeria’s oil landscape, with implications for production, investment, and the nation’s energy future.