Shell To Pay TotalEnergies $510m For Bonga Field Acquisition

French oil major TotalEnergies says its Nigerian subsidiary, TotalEnergies EP Nigeria (TEPNG) has agreed to sell its 12.5 per cent stake in the Bonga oilfield offshore Nigeria to Shell Nigeria Exploration and Production Company Ltd (SNEPCo).

If all goes well, the deal, would be closed by the end of the year for $510 million.

It comes on the heels of similar mega deals, including the $1.3 billion ExxonMobil divestment to Seplat, and Renaissance Africa Energy’s takeover of total shares and assets of Shell Petroleum Development Company (SPDC) in Nigeria.

“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,” said Nicolas Terraz, President of Exploration & Production at TotalEnergies.

“In Nigeria, the company is focusing on its operated gas and offshore oil assets and is currently progressing the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG.”

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OML118 PSC is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%).

It embodies the Bonga field, as well as the Bonga North field, Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d in company share in 2024.

“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” Shell’s upstream Chief Peter Costello has said.