French energy giant TotalEnergies has agreed to sell its 12.5 percent non-operated interest in Nigeria’s Bonga deepwater oilfield to Shell Nigeria Exploration and Production Company (SNEPCo) for \$510 million. The deal, announced on May 29, 2025, marks another significant shift in the ownership and operational dynamics of one of Nigeria’s most important offshore oil assets. Pending customary regulatory approvals, the transaction is expected to close before the end of the year.
The Bonga field, located approximately 120 kilometers offshore from the Niger Delta, has been a cornerstone of Nigeria’s deepwater oil production since it began operating in 2005. It currently produces around 225,000 barrels of oil per day, making it one of the country’s largest and most productive offshore fields. The sale will increase Shell’s stake in the field’s operating license, known as Oil Mining Lease (OML) 118, to 67.5 percent, further consolidating its role as the field operator.
TotalEnergies’ decision to divest from the Bonga field is part of its broader strategy to reshape its upstream portfolio by focusing on assets with lower technical complexity and a reduced carbon footprint. According to Nicolas Terraz, President of Exploration and Production at TotalEnergies, the company is prioritizing operated gas and offshore oil assets, including projects like Ubeta, which aims to support sustainable gas supply to Nigeria LNG.
This move reflects the wider trend in the oil and gas industry, where companies are increasingly seeking to align their operations with environmental goals and economic efficiency. TotalEnergies has been actively adjusting its portfolio, having earlier in 2024 sold a 10 percent stake in the Shell Petroleum Development Company (SPDC) to Chappal Energies for \$860 million, part of its focus on integrated gas value chains and more sustainable energy sources.
Shell’s acquisition of TotalEnergies’ stake in Bonga strengthens its position in Nigeria’s offshore oil sector. The company has demonstrated its commitment through significant investments in the field’s future development. In December 2024, Shell made a final investment decision on the Bonga North deepwater project, a subsea tie-back development estimated to hold more than 300 million barrels of oil equivalent. This project is anticipated to ramp up production by an additional 110,000 barrels per day by the end of the decade, extending the life and productivity of the Bonga asset.
The acquisition fits Shell’s strategic plan to deepen its presence in deepwater oil operations in Nigeria while gradually shifting away from more complex and higher-risk onshore assets. This focus allows Shell to leverage its technical expertise in offshore development and maintain its role as a key player in Nigeria’s oil industry.
Industry analysts view this transaction as a positive step towards streamlining operations and increasing efficiency in Nigeria’s oil sector. By consolidating interests under Shell’s management, the Bonga field is expected to benefit from more cohesive operational control, potentially improving productivity and reducing costs.
However, the deal also comes at a time of broader challenges for Nigeria’s oil and gas industry. The sector faces pressures from fluctuating global oil prices, environmental concerns, and regulatory changes. Companies are under increasing scrutiny to balance economic gains with sustainability commitments.
The Nigerian government and regulatory authorities will be closely monitoring the transaction to ensure compliance with local content regulations and to secure the country’s economic interests. The sale must also be approved by relevant regulatory bodies before completion.
Beyond the Bonga field, TotalEnergies continues to adjust its portfolio globally to meet the evolving energy landscape. Its divestment from certain assets in Nigeria reflects a strategic realignment aimed at focusing on lower-carbon and more profitable ventures, consistent with its long-term goals for sustainability and growth.
For Shell, this acquisition reinforces its position as one of the dominant operators in Nigeria’s deepwater oil sector, a critical component of the country’s oil output. The company’s investments in projects like Bonga North signal confidence in the future of offshore oil production despite the challenges facing the global oil industry.
As the transaction moves towards finalization, stakeholders across Nigeria’s energy landscape will be watching closely. The success of this deal could set a precedent for further portfolio reshaping by major oil companies operating in the country and influence the future trajectory of Nigeria’s oil production capabilities.
In summary, the sale of TotalEnergies’ stake in the Bonga field to Shell marks a significant development in Nigeria’s oil industry. It highlights ongoing efforts by multinational energy companies to optimize their operations in the face of evolving market dynamics and sustainability pressures. The transaction is expected to enhance Shell’s offshore portfolio and support continued production growth in one of Nigeria’s most vital oil assets.
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