TotalEnergies Sells Interests in Bonga Field for $510 Million to Shell Nigeria

• TotalEnergies has disclosed that it has signed an agreement with Shell Nigeria to sell its 12.5% stake in the Bonga oil field
• The company disclosed that the $510 million oil deal is subject to regulatory approvals from Nigerian authorities
• However, TotalEnergy said it will refocus its energy and resources on the Ubeta project to supply gas to Nigeria LNG

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

TotalEnergy has disclosed that its subsidiary, TotalEnergies EP Nigeria, inked a deal with Shell Nigeria Exploration and Production Company Limited (SNEPCo) to sell its non-operated 12.5% interest in the Oil Mining License (OML) 118 Production Sharing Contract (PSC) for about $510 million.

The oil firm stated in an official release that OML118 PSC is operated by Shell Nigeria, which has a 55% stake, in partnership with Esso Exploration and Production Nigeria, with a 20% stake, TotalEnergies Nigeria, with a 12.5% stake, and Nigerian Agip Exploration, with a 12.5% stake. 

TotalEnergies has yet to receive approval

The Bonga field is located deep offshore at 120km south of Nigeria’s Niger Delta and contains the Bonga field, which began production in 2005, and the Bonga North field, which started development in 2024.

According to the Wall Street Journal, the OML 118 PSC is mainly oil and represents about 111,00 boe/d in the firm’s share in 2024.

TotalEnergies disclosed that the transaction’s completion is subject to regulatory approvals.

TotalEnergies is not leaving Nigeria

A statement from TotalEnergies said it will continue to actively engage in a high-grade upstream portfolio with minimal costs and low emissions, and lower its cash breakeven.

Nicolas Terraz, President Exploration & Production at TotalEnergies, said the firm is focusing on its operational gas and offshore oil assets and is currently progressing in the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG.

Shell announces major investment in Bonga Field

Legit.ng previously reported that Shell announced that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), would invest in Bonga North, a deepwater project off the coast of Nigeria.

The company disclosed in a statement on Monday, December 16, 2024, that the Bonga North would be a subsea tie-back to its Bonga floating production storage and offloading (FPSO) facility.

New project will produce 300 million barrels

It said in a statement that the project involves the drilling and startup of 16 wells, modifications to the existing Bonga Main FPSO and the installation of new hardware.

The firm said the project will maintain oil and gas production at the facility.

It stated that Bonga North already has a recoverable resource volume of 300 million barrels of oil equivalent and will reach a full production capacity of 110,000 barrels daily.

Shell’s integrated gas and upstream director, Zoe Yugnovic, said the move is another key investment to help it maintain stable liquid production from its upstream portfolio.

Jugnovic disclosed that the project will help the company’s leading integrated gas and upstream business to continue to generate cash into the next decade.

Bonga North produces one billion barrels

According to reports, the company operates the Bonga field in collaboration with Esso Exploration Production Nigeria Limited and holds a 20% interest.

Agip Exploration Limited has 12%, and TotalEnergies Exploration and Production Limited owns 12.5% of the Nigerian National Petroleum Company Limited (NNPC).

Shell disclosed that the Bonga North project produced its one billionth barrel of crude oil last year since exploration began in 2005.

Coming when International Oil Companies (IOCs) are exiting the Nigerian oil industry in a hurry, the new project provides the needed relief for the Nigerian economy.

Another firm acquires Shell's oil and gas onshore assets

Legit.ng earlier reported that Renaissance Africa Energy Holdings has announced that it has completed its acquisition of Shell Petroleum Development Company (SPDC) onshore assets for $2.4 billion.

The transaction will now see Shell rebranded as Renaissance Africa Energy Company Limited.

The acquisition marks the end of Shell’s almost 100 years of operations in Nigeria’s onshore oil and gas and is part of a larger exit by foreign energy firms from Nigeria, including Exxon Mobil, Eni, and Equinor.

Source: Legit.ng