By Stanley Onyeka, Lagos
Shell Nigeria Exploration and Production Company (SNEPCo), a subsidiary of Shell plc, today, announced the acquisition TotalEnergies EP Nigeria Limited’s 12.5% stake in the Bonga deepwater oil field.
Accordingly, SNEPCo, which had operating rights with 55% now has 67% controlling stake in the deepwater field located in the mining lease offshore 118 Production Sharing Contract (OML 118 PSC).
The TotalEnergies’ 12.5% was held on behalf of the Nigerian National Petroleum Company Limited (NNPC), so it is not clear if the Company will seek preemptive right over the stake, as it did with Mobil Producing Nigeria Unlimited (MPNU’s) onshore sale, leading to protracted litigation.
Other partners in the PSC include Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and A statement released by Shell plc in London, revealed that an agreement was signed yesterday with TotalEnergies to acquire its 12.5% stake in the highly prolific field.
Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.
It currently produces from the Bonga field via the Bonga Floating Production Storage and Offloading (FPSO) vessel and announced the development of the Bonga North field after a final investment decision (FID) in December 2024.
Production from Bonga began in 2005, with a capacity to produce 225,000 barrels of oil per day. The Bonga field produced its one-billionth barrel of crude oil in 2023.
Shell’s President, Upstream, Peter Costello, was quoted as saying: “Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.”
Although still subject to regulatory approvals and other closing conditions, the transaction is expected to be completed before the year ends.
Shell further explained that “This targeted investment contributes towards growing Shell’s combined Integrated Gas and Upstream total production by 1% per year to 2030 and contributes towards sustaining our 1.4 million barrels per day of liquids production.
