TotalEnergies Sells Stake in Bonga Field to Shell for $510 Million

 

French oil and gas multinational TotalEnergies has agreed to sell its 12.5% non-operated interest in Nigeria’s Bonga deepwater oilfield to Shell Nigeria Exploration and Production Company (SNEPCo) in a transaction valued at $510 million.

The move is part of TotalEnergies’ strategic shift toward a leaner, more efficient upstream portfolio and reflects the changing dynamics of the global energy industry. For Shell, the deal marks a reinforcement of its long-standing commitment to Nigeria’s deepwater sector and a step towards consolidating its position in one of Africa’s most prolific offshore assets.

The Bonga oilfield, situated approximately 120 kilometers offshore from the Niger Delta, lies within the Oil Mining Lease (OML) 118 block. Discovered in the early 1990s, the Bonga field made history as Nigeria’s first deepwater oil development and began production in 2005. Operated by SNEPCo, a subsidiary of Shell, the field is a collaborative venture involving several partners: Shell (formerly 55%), Esso Exploration and Production Nigeria Limited (20%), Nigerian Agip Exploration Limited (12.5%), and until now, TotalEnergies (12.5%).

With this transaction, Shell will raise its interest in the Bonga field to 67.5%, further solidifying its operational and economic influence over the field’s current and future development. Shell has consistently highlighted Nigeria as a priority investment location for its deepwater exploration and production business. The additional stake is expected to bolster Shell’s production volumes and improve its ability to drive decision-making in future developments, including the anticipated Bonga North project.

Bonga North, a major expansion of the existing field, is forecast to add approximately 110,000 barrels of oil equivalent per day once it comes onstream later this decade. The development is expected to extend the life of the Bonga asset and contribute significantly to Nigeria’s oil output. As global energy demand continues to evolve, Shell views Bonga as a critical asset in meeting supply needs while also transitioning toward a lower-carbon portfolio.

From TotalEnergies’ perspective, the sale aligns with the company’s global strategy to optimize its upstream operations. In recent years, the French energy giant has sought to divest from non-core and non-operated assets, focusing instead on projects with lower technical costs, reduced greenhouse gas emissions, and stronger return profiles. The divestment of its Bonga interest is consistent with this approach, allowing the company to reallocate capital to projects that better fit its long-term energy transition goals.

Specifically in Nigeria, TotalEnergies remains committed to its upstream presence, particularly in natural gas. The company is focusing on operated offshore and gas projects, including the development of the Ubeta gas field. Ubeta is seen as a vital component in sustaining gas supply to the Nigeria LNG project, of which TotalEnergies is a key partner. With global energy markets placing increased emphasis on cleaner fuels, the company’s strategy in Nigeria mirrors its global pivot toward low-carbon energy and liquefied natural gas (LNG) development.

The decision to sell its stake in Bonga does not suggest a retreat from Nigeria, but rather a recalibration of investment priorities. TotalEnergies continues to operate other major assets in the country and has reiterated its intention to remain a strong player in Nigeria’s upstream sector. The move reflects a pragmatic approach to asset management in a complex and fast-changing energy landscape.

Industry analysts have pointed out that the transaction is a win-win for both parties. For Shell, it ensures greater operational alignment in one of its key African assets. For TotalEnergies, it unlocks capital that can be redeployed into projects better suited to its evolving business model. Moreover, the deal provides clarity to Nigeria’s oil and gas sector, which has seen increasing calls for restructuring and renewed investment following the enactment of the Petroleum Industry Act (PIA) in 2021.

The Nigerian government, which has been encouraging investment in both oil and gas and renewables, is likely to view the transaction positively. Increased production from Bonga and its associated expansion projects will not only boost government revenue through royalties and taxes but also strengthen Nigeria’s position as a reliable crude oil supplier on the international market. At a time when the country is striving to attract more foreign direct investment and modernize its energy infrastructure, the continued interest of multinational oil companies like Shell sends a reassuring signal to investors.

The deal is subject to regulatory approvals and customary closing conditions and is expected to be finalized before the end of 2025. Once completed, it will be one of the most significant upstream asset transfers in Nigeria in recent years, setting the stage for a new phase of activity in the deepwater segment.

In conclusion, TotalEnergies’ sale of its Bonga stake to Shell represents a calculated shift by both energy giants in alignment with their long-term strategies. While TotalEnergies refocuses its upstream efforts on gas and low-emission projects, Shell doubles down on a proven asset with strong future potential. For Nigeria, the transaction could mean increased investment, higher oil output, and renewed confidence in its offshore sector. As the global energy landscape continues to transform, strategic decisions like this will define the future of oil and gas in Africa’s largest economy.