In a major development for Nigeria’s oil and gas sector, Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of global energy giant Shell, has agreed to buy a 12.5% stake in the famous Bonga oil field from TotalEnergies for a massive $510 million.
The deal, announced in late May 2025, will see Shell’s ownership share in the deepwater OML 118 Production Sharing Contract (PSC) rise from 55% to 67.5%.
This move firmly establishes Shell as the lead operator of the Bonga field, one of Nigeria’s most important offshore assets. The transaction is still awaiting final approval from regulators, but once completed, it will mark a major shift in the energy landscape of the country.
“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” said Peter Costello, Shell’s President of Upstream.
Who Holds What in Bonga?
After the deal is finalized, Shell will control 67.5% of the OML 118 PSC. The remaining shares will be held by Esso Exploration and Production Nigeria Ltd (ExxonMobil) with 20% and Nigerian Agip Exploration Ltd (Eni) with 12.5%.
TotalEnergies, which has been in Nigeria for over 60 years and employs more than 1,800 people, is now focusing on assets with lower costs and emissions.
“TotalEnergies continues to concentrate on assets that feature low technical costs and reduced emissions, while also aiming to decrease its cash breakeven point,” explained Nicolas Terraz, President of Exploration & Production at TotalEnergies.
The Bonga oil field sits about 120 kilometres off the coast of the Niger Delta, in water depths of more than 1,000 metres.
Production began in 2005, and since then, Bonga has become one of Nigeria’s most productive offshore fields, with a capacity of 225,000 to 250,000 barrels of oil per day.
In 2023, the field celebrated producing its one-billionth barrel of oil—a major milestone for Nigeria’s energy sector.
In 2024, TotalEnergies’ share of Bonga’s output was about 11,000 barrels of oil equivalent per day. This production will now be added to Shell’s portfolio once the deal is complete.
What’s Next for Bonga?
Shell is not stopping with this acquisition. In December 2024, the company made a Final Investment Decision (FID) on the Bonga North project, a subsea tie-back to the Bonga Floating Production Storage and Offloading (FPSO) vessel.
This new project is expected to add over 300 million barrels of oil equivalent in recoverable reserves, with a peak production of 110,000 barrels per day by the end of the decade.
“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” Shell’s Peter Costello said, emphasizing the company’s long-term commitment to Nigeria.
For Nigeria, this deal is a major boost. Shell’s increased investment means more jobs, greater technology transfer, and higher government revenue from oil exports.
It also sends a strong message to other international investors that Nigeria’s deepwater sector remains attractive, even as the world shifts toward renewable energy.
“Shell’s move is a vote of confidence in Nigeria’s oil and gas sector. It shows that despite global changes, our offshore fields are still highly valuable,” commented energy analyst Chinedu Okonkwo.
Looking to the Future
The deal is expected to close before the end of 2025, pending regulatory approvals. Shell’s strategy is clear:
grow its integrated gas and upstream production by 1% per year to 2030, while maintaining its global liquids production at 1.4 million barrels per day.
For Nigeria, this means more oil, more jobs, and more investment. For Shell, it means a stronger position in one of the world’s most promising deepwater regions.
Quote of the Day
“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.”
— Peter Costello, President of Upstream, Shell
Shell’s $510 million investment in Bonga is not just about oil. It’s a statement of faith in Nigeria’s energy future. With new projects on the horizon and a growing portfolio, Shell is set to remain a major force in Nigeria’s oil and gas sector for years to come. The deal also shows that, despite global changes, Nigeria’s deepwater assets are still a magnet for big investments—good news for the country’s economy and its people
