Shell has agreed to acquire TotalEnergies’ 12.5% stake in Nigeria’s offshore Bonga oil field for $510 million. This transaction will increase Shell’s interest in the OML 118 Production Sharing Contract (PSC) from 55% to 67.5%, reinforcing its position as the operator of the field.
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Transaction Details:
Parties Involved: Shell Nigeria Exploration and Production Company (SNEPCo) and TotalEnergies EP Nigeria Ltd.
Financial Terms: $510 million for TotalEnergies’ 12.5% stake.
Closing Timeline: Expected by the end of 2025, pending regulatory approvals.
Strategic Implications:
This acquisition aligns with Shell’s strategy to bolster its deepwater operations in Nigeria, particularly following its divestment of onshore assets to the Renaissance consortium. The Bonga field, which began production in 2005, currently has a capacity of 225,000 barrels per day. With the development of the Bonga North field, Shell anticipates an additional 110,000 barrels per day, with first oil expected before the end of the decade.
Local and Industry Reactions:
The deal has garnered attention both within Nigeria and internationally. While some view Shell’s increased stake as a positive move for local content and investment, others express concerns about the environmental and social impacts of offshore oil operations. The Nigerian National Petroleum Company Limited (NNPCL) has yet to comment on the transaction.
