TotalEnergies has agreed to sell its 12.5% interest in two fields offshore Nigeria to Shell for $510 million, the companies announced.
Shell Nigeria Exploration and Production Co., the operator of the OML 118 Production Sharing Contract, will increase its interest to 67.5% from 55% when the sale is complete.
The other partners are Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%).
The development 120 km south of the Niger Delta contains the Bonga and Bonga North fields. Production from Bonga began in 2005, with a capacity of 225,000 bbl/d of oil. The Bonga field produced its one-billionth barrel of crude oil in 2023.
In December 2024, Shell announced a final investment decision on Bonga North, a subsea tieback to the existing Bonga FPSO. Bonga North has an estimated recoverable resource volume of more than 300 MMboe and is expected to reach peak production of 110,000 bbl/d of oil, with first oil anticipated by the end of the decade, Shell said.
“This acquisition brings another significant investment in Nigeria deepwater that contributes to sustained liquids production and growth in our upstream portfolio,” said Peter Costello, president of Shell Upstream.
Total said the sale was part of its strategy to improve the quality of its upstream portfolio. The company is focusing on developing its Ubeta project to sustain gas supply to Nigerian LNG.
Completion of the transaction is subject to customary conditions, including regulatory approvals, the companies said.