Shell Acquires TotalEnergies’ 12.5% Stake in Nigeria’s Bonga Oilfield for $510 Million
Shell has announced the acquisition of TotalEnergies’ 12.5% stake in the Bonga oilfield, located offshore Nigeria, for $510 million. This transaction increases Shell’s ownership in the field to 67.5%, reinforcing its commitment to offshore oil production in Nigeria .
🛢️ About the Bonga Oilfield
The Bonga oilfield, situated in Oil Mining Lease (OML) 118, was Nigeria’s first deepwater oil project, commencing production in 2005. Operated by Shell Nigeria Exploration and Production Company (SNEPCo), the field has been a significant contributor to Nigeria’s oil output. The Floating Production Storage and Offloading (FPSO) unit at Bonga has a capacity of 225,000 barrels per day.
In December 2024, Shell and its partners made a Final Investment Decision (FID) on the Bonga North Deepwater Project, a subsea tie-back to the existing FPSO. This project is expected to add 110,000 barrels of oil per day to Nigeria’s production, with first oil anticipated before the end of the decade .
🤝 Strategic Implications of the Acquisition
This acquisition aligns with Shell’s strategy to focus on deepwater and integrated gas projects, moving away from onshore operations. In December 2024, Shell received approval from Nigeria’s oil minister for the sale of $2.4 billion in onshore and shallow-water assets to Renaissance Group, marking the end of Shell’s nearly century-long onshore operations in Nigeria .
President Bola Tinubu has commended Shell and its partners for their investment in the Bonga North project, highlighting the government’s efforts to create a stable and investor-friendly environment in the oil and gas sector .
📸 Visual Overview
Here are some images related to the Bonga oilfield:
Bonga FPSO: The Floating Production Storage and Offloading unit at the Bonga oilfield.
Bonga North Deepwater Project: An artist’s impression of the Bonga North subsea tie-back project.
Bonga Oilfield Location: A map showing the location of the Bonga oilfield offshore Nigeria.
This acquisition underscores Shell’s strategic focus on enhancing its offshore oil production capabilities in Nigeria, contributing to the country’s energy sector development.
