- Shell is taking over TotalEnergies’ 12.5% stake in Nigeria’s Bonga oilfield for $510 million
- The deal, still pending approvals, is expected to wrap up by year-end
- Shell’s total stake will now rise to 67.5%, reinforcing its role as the lead operator
- Bonga field began operating in 2005 and is key to Nigeria’s oil output
- The move highlights a shift to offshore oil, seen as safer and more productive
Shell has struck a major deal to boost its control over Nigeria’s offshore oil sector. The energy firm will now hold 67.5% of the Bonga oilfield, after agreeing to buy TotalEnergies’ 12.5% share for $510 million. This deal is still waiting for final approvals but is expected to close before the end of the year.
With this move, Shell strengthens its role as the main operator of Bonga, a deep-water oilfield that started pumping oil in 2005. The field uses a large FPSO vessel, capable of handling up to 225,000 barrels per day, making it one of Nigeria’s most valuable offshore assets.
Shell’s decision follows a clear shift away from onshore oil activities, which have been affected by theft, environmental problems, and unrest. Recently, Shell sold off its onshore business to Renaissance, a group that includes four Nigerian companies and one global partner.
Nigeria’s Offshore Sector Attracting More Global Players
TotalEnergies’ exit from the Bonga project opens the door for Shell to push forward with long-term offshore goals. An expansion project was already approved by stakeholders last year, aiming to increase oil production by 110,000 barrels per day before 2030.
Peter Costello, Shell’s Upstream Director, welcomed the deal and said:
“This is another strong step in our deep-water investments. It helps us grow our production and strengthens our presence in Nigeria.”
Once the deal goes through, the new ownership of Bonga will be shared between Shell (67.5%), Esso Exploration and Production Nigeria (20%), and Nigerian Agip Oil Company (12.5%), owned by Oando.
This transaction is part of a wider trend where offshore oilfields are becoming more attractive to investors. Compared to onshore sites, they face fewer disruptions and offer more predictable output—something vital for global energy players betting on long-term returns.
