Shell is strengthening its foothold in Nigeria’s offshore oil sector with a new deal to acquire a 12.5% stake in the Bonga oilfield from TotalEnergies for $510 million, according to an announcement made on Thursday.
The purchase boosts Shell’s ownership in the Bonga offshore field to 67.5%, reinforcing its commitment to deepwater exploration and production in Nigeria. This move comes in contrast to Shell’s recent exit from Nigeria’s onshore sector, which has been marred by environmental and operational challenges. Shell recently offloaded its onshore assets to Renaissance, a consortium comprising four local firms and an international energy partner.
Bonga Expansion Underway
The Bonga field, located offshore in the Gulf of Guinea, is already a significant contributor to Nigeria’s oil output. Last year, the field’s stakeholders approved a major expansion project expected to add 110,000 barrels of oil equivalent per day, with first production targeted before the end of the decade.
Bonga’s floating production, storage, and offloading (FPSO) unit is currently capable of handling 225,000 barrels per day (bpd).
“This acquisition marks another strategic investment in Nigeria’s deepwater sector, supporting our ongoing production and upstream portfolio growth,” said Peter Costello, Shell’s head of upstream operations.
Ownership Structure and Deal Timeline
Following the transaction, the revised ownership structure of the Bonga oilfield will be:
-
Shell – 67.5% (Operator)
-
Esso Exploration and Production Nigeria (Exxon subsidiary) – 20%
-
Oando’s Agip – 12.5%
The deal is still subject to regulatory approvals and is expected to close by the end of the year.
