Nigeria’s petroleum regulator has underscored its commitment to accountability in the oil sector with the approval of Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration (NAE) as new holders of TotalEnergies’ 12.5 per cent stake in Oil Mining Lease (OML) 118.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said on Thursday that the approval was granted after a rigorous due diligence process under the Petroleum Industry Act (PIA) 2021. SNEPCo will acquire 10 per cent of the interest for $408 million, while NAE will take 2.5 per cent for $102 million.
Protecting State Interests
In line with the PIA, the regulator confirmed that all financial, decommissioning, abandonment, and host community obligations have been fully transferred from TotalEnergies to the new participants. This ensures, according to the Commission, that government interests remain safeguarded while boosting transparency in asset transfers.
The announcement comes shortly after the NUPRC revoked an $860 million deal between TotalEnergies and Chappal Energies for failure to meet financial obligations—signalling a tougher stance on compliance.
Industry Realignment
For Shell, the acquisition raises its stake in the Bonga field to 67.5 per cent, consolidating its role as a key deepwater operator in Nigeria. The move follows its exit from onshore assets earlier this year, reflecting a wider industry trend of international oil companies shifting away from high-risk terrains to focus on deepwater and gas projects.
Meanwhile, for TotalEnergies, the divestment is consistent with its portfolio rebalancing strategy, allowing the company to redirect capital toward lower-risk, higher-value ventures.
National Energy Significance
The Bonga field, which came onstream in 2005, remains pivotal to Nigeria’s crude production. With output still struggling to recover to pre-pandemic levels of around 2 million barrels per day, further investment in Bonga is seen as crucial to stabilising national supply.
