Sometimes, the most revealing business moves happen when companies head in opposite directions on the same opportunity. Shell has agreed to acquire TotalEnergies' 12.5% stake in Nigeria's offshore Bonga oil field for $510 million, increasing Shell's total ownership to 67.5%. While one international oil giant steps back, another leans forward—a strategic dance that says as much about corporate priorities as it does about Nigeria's energy future.
This $510 million handshake reveals how differently major oil companies view Nigeria's offshore potential versus onshore challenges.
Key Takeaways:
- The deal increases Shell's stake in the Bonga field from 55% to 67.5%, reinforcing its position as operator in the deep-water development located 120 kilometers south of the Niger Delta
- Bonga North field development, announced in December 2024, has an estimated recoverable resource volume of more than 300 million barrels and is expected to reach peak production of 110,000 barrels per day by decade's end
- TotalEnergies is strategically refocusing on operated gas and offshore oil assets while exiting non-operated positions, part of a broader portfolio optimisation strategy
- The transaction requires regulatory approval and is expected to be completed before the end of 2025, contributing to Shell's goal of increasing production by 1% annually through 2030
What does it mean when some global energy players see Nigeria as a place to expand while others choose to exit? And how might this reshape the country's position in global energy markets?
