In a significant development for Nigeria’s oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved the sale of TotalEnergies’ 12.5 % non-operated interest in the Bonga oilfield (OML 118) to Shell and Nigerian Agip Exploration (NAE). The transaction, valued at $510 million, represents a major shift in ownership structure within one of Nigeria’s most productive offshore oil fields.
The Bonga field, located 120 kilometers off the Nigerian coast in water depths of over 1,000 meters, is a critical part of Nigeria’s deep-water oil production. First brought online in 2005, Bonga was Nigeria’s first deepwater development and remains a key asset in the nation’s oil output.
💰 Breakdown of the Transaction
Under the approved deal, Shell Nigeria Exploration and Production Company (SNEPco) will acquire 10 % of TotalEnergies’ stake for about $408 million, while Nigerian Agip Exploration, a subsidiary of Italy’s Eni, will take 2.5 % for approximately $102 million.
Once the transaction is completed, Shell’s stake in the Bonga oilfield will increase from 55 % to 67.5 %, giving the company greater control over production and operational decisions. Esso (ExxonMobil) retains its 20 % interest, while Agip’s total share will rise to 12.5 %.
The deal has already received the green light from NUPRC, though it still awaits final ministerial consent, which is a legal requirement under Nigeria’s Petroleum Industry Act (PIA) 2021.
⚙️ Regulatory Approval and Conditions
The NUPRC stated that due diligence was conducted to assess the technical, financial, and managerial capacity of Shell and Agip to take over the divested interest. Both companies were found capable of handling the operational responsibilities that come with the stake, including production, maintenance, community engagement, and environmental compliance.
The regulatory body also emphasized that the buyers must assume all obligations tied to the divested interest, including decommissioning and abandonment liabilities, host community responsibilities, and all existing contractual commitments.
Additionally, the companies will pay processing fees and premiums amounting to roughly 7 % of the total transaction value to the Nigerian government.
🌍 Strategic Implications for the Oil Sector
For TotalEnergies, the sale marks another step in its global strategy to “high-grade” its upstream portfolio by focusing on operated assets that offer lower costs and emissions. The French energy giant has been gradually reducing its exposure to non-operated and high-risk oil assets, particularly in regions where environmental or operational risks are higher.
For Shell, the deal is part of a deliberate move to consolidate its presence in Nigeria’s deepwater sector. Shell has been exiting several onshore oil blocks due to security challenges, environmental liabilities, and frequent sabotage in the Niger Delta. By contrast, deepwater operations like Bonga offer more controlled environments and lower security risks.
With this acquisition, Shell is poised to strengthen its role in offshore production, which aligns with its broader energy transition strategy — focusing on profitable, lower-carbon projects while gradually reducing its onshore footprint.
⛽ About the Bonga Oilfield
Bonga is operated by Shell Nigeria Exploration and Production Company (SNEPco) under a Production Sharing Contract with the Nigerian National Petroleum Company Limited (NNPCL). It was Nigeria’s first deepwater project and has produced over 900 million barrels of oil since its inception.
The field’s infrastructure includes a Floating Production Storage and Offloading (FPSO) vessel capable of producing 225,000 barrels of oil per day and storing up to 2 million barrels. Bonga has been a key revenue source for the Nigerian government through royalties, taxes, and profit oil.
The upcoming Bonga North project, an extension of the existing field, is also expected to boost Nigeria’s production capacity. Shell’s increased stake gives it more influence over these future developments, which could play a role in reversing Nigeria’s recent decline in oil output.
🇳🇬 Impact on Nigeria’s Economy
Nigeria has faced production challenges in recent years, including pipeline vandalism, oil theft, and underinvestment in new exploration. Deals like this signal renewed investor confidence in the country’s deepwater sector.
The sale also brings in foreign direct investment, worth over half a billion dollars, which could provide fiscal relief and support the government’s efforts to stabilize the economy.
Regulators hope that Shell and Agip’s increased involvement will lead to more efficient operations, higher output, and more reliable revenue streams for Nigeria. However, analysts also warn that the government must ensure strict enforcement of environmental and community obligations to prevent past mistakes from recurring.
📝 Conclusion
The Nigerian government’s approval of Shell and Agip’s buyout of TotalEnergies’ stake in the Bonga oilfield is more than just a business transaction — it’s a strategic move that reshapes the structure of one of the country’s most important energy assets.
For Shell, it represents a deepening commitment to Nigeria’s offshore oil industry. For TotalEnergies, it reflects a global pivot toward leaner, lower-emission operations. And for Nigeria, it offers the potential for increased investment, production stability, and economic gains — if managed effectively.
As the deal moves toward final ministerial consent, industry watchers will be closely following its impact on output levels, environmental performance, and the broader direction of Nigeria’s oil sector in a rapidly changing global energy landscape.
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