Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell Plc, has announced plans to acquire TotalEnergies’ 12.5% stake in Nigeria’s deepwater Bonga field.
The energy giant disclosed this in a statement on Monday, confirming that an agreement has already been signed between the two parties.
Upon completion of the transaction, Shell’s interest in the Oil Mining Lease 118 Production Sharing Contract (OML 118 PSC), which includes the Bonga field, will increase from 55% to 67.5%.
SNEPCo currently operates the Bonga field, which is located offshore Nigeria in water depths exceeding 1,000 meters. The field began production in 2005 and has a capacity to produce 225,000 barrels of oil per day. It reached a significant milestone in 2023 when it produced its one-billionth barrel of crude oil.
Commenting on the development, Shell’s President, Upstream, Mr. Peter Costello, said, “Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria’s deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.”
The transaction is still subject to regulatory approvals and other closing conditions and is expected to be completed before the end of this year.
Currently, SNEPCo operates the Bonga field with a 55% stake in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies EP Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
Following the acquisition, SNEPCo will hold a 67.5% stake, while Esso and Nigerian Agip will maintain their respective shares.
Shell noted that this targeted investment aligns with its strategy to grow its combined Integrated Gas and Upstream total production by 1% per year until 2030 and sustain its 1.4 million barrels per day of liquids production.
In December 2024, Shell announced a final investment decision on the Bonga North project, which is a subsea tie-back to the existing Bonga Floating Production Storage and Offloading (FPSO) vessel. Bonga North is estimated to hold more than 300 million barrels of oil equivalent in recoverable resources and is expected to achieve peak production of 110,000 barrels of oil per day, with first oil anticipated before the end of the decade.
The estimated peak production and resource volumes are gross figures, classified as 2P (proven and probable) reserves under the Society of Petroleum Engineers’ Petroleum Resources Management System.
The latest move further underscores Shell’s commitment to deepwater developments in Nigeria, positioning it for continued growth in the country’s offshore oil sector.
