Total Energies (France) has disclosed that it would sell its stake in a major offshore oil field in Nigeria to Shell for $510 million. The Company is giving up its 12.5% stake in the Bonga field, increasing Shell’s own share to 67.5%.
The firm is withdrawing from a production-sharing agreement that the Nigerian state signed in 2021 with TotalEnergies, Shell, US oil major ExxonMobil and Italy’s Eni following two years of tough negotiations.
According to Total Energies president for exploration and production, Nicolas Terraz, the firm was “focusing on its operated gas and offshore oil assets” in Nigeria.
Bonga is part of the OML 118 block, 120 kilometres (75 miles) south of the Niger Delta. The field is expected to have a production capacity of 250,000 barrels per day.
Peter Costello, Shell’s upstream business president stated thus:
“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.”