Shell Strikes $510 Million Deal to Acquire TotalEnergies’ Nigerian Deepwater Assets
TotalEnergies has finalized a major divestment agreement with Shell, selling its 12.5% stake in Nigeria’s prolific Bonga oil field for $510 million in a transaction that reshapes the country’s offshore energy landscape.
The OML118 Production Sharing Contract encompasses deepwater assets located approximately 74 miles south of the Niger Delta, housing both the established Bonga field that began production in 2005 and the newly developed Bonga North field, which commenced operations in 2024. This strategic acquisition will elevate Shell’s ownership position to 67.5% upon deal completion, while Esso Exploration and Production Nigeria retains 20% and Nigerian Agip Exploration maintains 12.5%.
The divested assets generated approximately 11,000 barrels of oil equivalent per day in TotalEnergies’ company share during 2024, representing a significant production stream that primarily consists of crude oil output from the deepwater offshore location.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, emphasized that this transaction aligns with the company’s strategic portfolio optimization initiatives, focusing resources on assets with low technical costs and reduced emissions while lowering overall cash breakeven thresholds. He noted that TotalEnergies remains committed to its operated gas and offshore oil assets in Nigeria, particularly advancing the Ubeta project designed to sustain gas supply to Nigeria LNG.
This divestment reflects broader industry trends as international oil companies strategically realign their African portfolios while maintaining focus on high-value, low-emission assets that deliver sustainable returns.
Source: worldoil.com
