French energy giant TotalEnergies announced on Tuesday that it will sell its stake in Nigeria’s Bonga offshore oil field to Shell for $510 million, marking a significant shift in the ownership of one of the country’s most prominent oil assets.
The deal will see TotalEnergies relinquish its 12.5% interest in the Bonga field, raising Shell’s share in the project to 67.5%, according to separate statements released by both companies. The remaining stakes are held by ExxonMobil and Eni.
With this transaction, TotalEnergies will officially exit the production-sharing agreement it signed in 2021 with the Nigerian National Petroleum Company (NNPC), Shell, ExxonMobil, and Eni. That agreement came after two years of protracted negotiations aimed at redefining the terms of investment and output sharing in Nigeria’s offshore oil sector.
The Bonga field, located in the Niger Delta, was Nigeria’s first deepwater oil project and began production in 2005. It has been a cornerstone of the country’s offshore oil output, producing hundreds of thousands of barrels of oil per day at its peak.
In its statement, TotalEnergies said the sale aligns with its broader strategy to streamline its upstream portfolio and focus investment on projects with the highest return potential, including lower-carbon assets. The company has been gradually reducing its footprint in certain oil-heavy regions as part of a broader shift toward energy transition and sustainability goals.
For Shell, the deal reinforces its long-term commitment to Nigeria’s oil and gas sector, where the company has had a presence for decades. The acquisition of TotalEnergies’ share consolidates Shell’s operational control over the Bonga field, which it already operates.
The sale still requires regulatory approvals and clearance from the Nigerian authorities, including the NNPC. Industry analysts say the transaction reflects a growing trend of international oil companies reassessing their exposure in Nigeria amid regulatory reforms, security concerns, and global pressures for cleaner energy investments.
The Nigerian government has recently taken steps to modernize the oil and gas sector, including the passage of the Petroleum Industry Act in 2021, which aims to make the country more attractive to investors through clearer fiscal terms and a more transparent regulatory framework.
If approved, the deal is expected to close in the coming months and could help accelerate development plans for further phases of the Bonga project.
