TotalEnergies sells Bonga field stake to Shell for $510 million.
TotalEnergies has announced a strategic move to streamline its upstream portfolio by selling its non-operated 12.5% interest in the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC) offshore Nigeria. The buyer, Shell Nigeria Exploration and Production Company Ltd (SNEPCo), will acquire the stake in a deal valued at $510 million.
This transaction was disclosed in a statement released on Thursday by Total Energies EP Nigeria, the company’s local subsidiary. The divestment comes as part of Total Energies broader strategy to concentrate on assets with lower technical costs and reduced carbon emissions, while also enhancing capital efficiency.
“TotalEnergies announces that its subsidiary, TotalEnergies EP Nigeria, signed an agreement with Shell Nigeria Exploration and Production Company Ltd for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract for an amount of $510 million,” the company stated.
OML118 is a deep offshore license located approximately 120 kilometres south of the Niger Delta. The block includes several oil fields, most notably the Bonga field, which began production in 2005. The Bonga North field is also under development, with project work commencing in 2024.
The OML118 PSC is currently operated by SNEPCo, which holds a 55% stake. Other partners include Esso Exploration and Production Nigeria (20%), Total Energies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%). The deal increases Shell’s equity share in the OML118 block, further reinforcing its commitment to deepwater operations in Nigeria.
TotalEnergies sells 12.5% Bonga stake to Shell.
TotalEnergies’ interest in OML118 contributed approximately 11,000 barrels of oil equivalent per day (boepd) to its production in 2024. With this sale, the company is exiting a non-operated position to concentrate on assets where it plays a leading operational role.
According to Nicolas Terraz, President of Exploration & Production at TotalEnergies, the company’s strategic focus is to develop assets with low technical costs and minimal environmental impact. This aligns with TotalEnergies’ wider commitment to decarbonisation and long-term sustainability as part of the global energy transition.
“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,” Terraz stated.
As part of this new direction, TotalEnergies is emphasising investments in operated gas and offshore oil projects. One of the key projects currently underway is the Ubeta development, designed to maintain and enhance gas supply to Nigeria LNG (NLNG). This project aims to bolster Nigeria’s energy security while supporting LNG exports and furthering TotalEnergies’ climate goals by lowering its operational carbon intensity.
The completion of the $510 million transaction is subject to regulatory approvals and customary closing conditions. Once finalized, the sale will mark another step in TotalEnergies’ ongoing effort to optimize its global upstream portfolio. It reflects the company’s shift away from high-cost, non-core, and non-operated assets, and toward more strategically aligned ventures.
This move follows a series of similar asset sales by the French energy giant across different markets, as it reallocates capital to ventures that better support its ambitions for growth in natural gas, renewables, and lower-emission energy solutions. The company is gradually shifting focus from traditional oil production to a diversified energy portfolio that aligns with global decarbonization targets.
The Bonga divestment reflects broader trends in the energy industry, where major players are focusing on core, high-margin operations, especially in complex and regulation-intensive regions like Nigeria. While Shell strengthens its deepwater presence through this acquisition, TotalEnergies exits a passive position in favor of high-value projects where it holds operational control.
Shell’s increased stake underscores its long-term commitment to offshore developments in Nigeria, even as it retreats from onshore oil assets. For TotalEnergies, the divestment is part of a calculated shift in strategy that emphasises sustainability, operational efficiency, and resilience in a volatile global energy landscape.
As Nigeria continues to seek foreign investment in its oil and gas sector, corporate realignments like this are expected to shape the next chapter of the country’s energy development. TotalEnergies, with its renewed focus on gas and offshore oil, is positioning itself to play a major role in Nigeria’s evolving energy future.
Source- Punch
