29th May 2025 08:41
(Alliance News) - Shell PLC on Thursday said it has increased its interest in Nigeria's Bonga field by purchasing TotalEnergies SE's 12.5% stake for USD510 million.
The London-based oil major said its subsidiary Shell Nigeria Exploration & Production Co, or SnepCo, has signed an agreement with TotalEnergies EP Nigeria Ltd to buy its stake in the OML 118 production sharing contract.
The production sharing contract is an oil mining lease offshore Nigeria that includes the Bonga field.
Upon completion, the transaction will increase Shell's interest in the contract to 67.5% from 55.0%. The remainder of the contract is held by Esso Exploration & Production Nigeria, which has a 20% interest, and Nigerian Agip Exploration, which holds 12.5%.
Production at the Bonga field began in 2005 and has the capacity to produce 225,000 barrels of oil per day, Shell noted.
Bonga North, a subsea tie-back to Bonga, has an estimated recoverable resource volume of over 300 million barrels of oil equivalent with an estimated peak production of 110,000 bopd.
The first oil at the Bonga North site is anticipated by the end of the decade, Shell added.
The transaction between Shell and TotalEnergies is expected to be completed before the end of this year.
"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," said Shell's Upstream President Peter Costello.
"TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven" said TotalEnergies Exploration & Production President Nicolas Terraz.
"In Nigeria, the company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria [liquefied natural gas]," he added.
Shares in Shell were up 0.8% to 2,465.00 pence in London on Thursday morning. TotalEnergies was 0.9% higher at EUR52.09 in Paris.
By Michael Hennessey, Alliance News reporter
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