TotalEnergies has agreed to sell its remaining 12.5% non-operated interest in Nigeria’s Bonga field (OML 118) to Shell Plc for $510 million.
The development was announced today in a media release by TotalEnergies and seen by The Bavijas Club.
This transaction marks TotalEnergies’ complete exit from the Bonga field, where it previously held a production sharing contract (OML 118 PSC) alongside Shell and other joint venture partners.
OML 118 hosts the prolific Bonga field, located approximately 120 kilometers offshore, south of the Niger Delta. The field began production in 2005, and an extension project, Bonga North, was launched in 2024.
Bonga is operated by Shell (55%) in partnership with Esso Exploration and Production Nigeria (20%), Nigerian Agip Exploration (12.5%), and TotalEnergies EP Nigeria (12.5%).
TotalEnergies’ share of production from the OML 118 assets in 2024 amounted to around 11,000 barrels of oil equivalent per day (boe/d), mostly from crude oil.
However, the company is now exiting the asset to focus its investments on lower-carbon and high-margin projects.
Commenting on the transaction, Nicolas Terraz, President of Exploration & Production at TotalEnergies, said:
“TotalEnergies continues to actively high-grade its upstream portfolio, focusing on assets with low technical costs and low emissions, and lowering its cash breakeven. In Nigeria, the company is concentrating on its operated gas and offshore oil assets and is currently progressing the Ubeta project, designed to sustain gas supply to Nigeria LNG.”
The move aligns with TotalEnergies’ broader strategy to streamline its upstream portfolio and divest non-core or non-operated assets.
Last year, the company also sold its remaining 10% stake in an onshore asset—formerly operated by Shell and now owned by the Renaissance Group—to Chappal Energies for $860 million.
For Shell, the acquisition strengthens its position in Nigeria’s deepwater sector by increasing its stake in the Bonga field, one of the country’s most prominent offshore oil assets.
The transaction will raise Shell’s ownership in OML 118 from 55% to 67.5%, consolidating its control and boosting production potential from both Bonga and the new Bonga North development.
The deal marks another major shift in Nigeria’s offshore oil landscape, underscoring continued investor confidence and capital flow into the country’s deepwater energy assets.
However, the transaction will be formalized by the Nigerian subsidiaries of Shell and TotalEnergies and remains subject to regulatory approval by the government.
Shell expects the necessary approvals could be granted as early as the end of the year.