Nigeria upstream regulator clears TotalEnergies’ $510mn Bonga stake sale

Nigeria’s upstream regulator has approved French major TotalEnergies’ divestment of its 12.5% interest in Oil Mining Lease (OML) 118, the offshore block hosting the Bonga deepwater field, allowing Shell and Nigerian Agip Exploration (NAE, part of Italy’s Eni) to expand their holdings.

The approval of the $510mn agreement with Shell and NAE comes after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revoked an earlier $860mn sale to local firm Chappal Energies over financing concerns. 

Under the new transaction, Shell Nigeria Exploration and Production Company (SNEPCo), the operator of OML 118, will acquire a 10% interest for $408mn. NAE will take the remaining 2.5% for $102mn. 

“SNEPco and NAE have demonstrated both technical and managerial competence to optimally contribute to upstream operations in OML 118. They already maintain participating interests in the asset and have access to sufficient funding to meet their financial obligations,” the NUPRC stated, noting that the transaction remains subject to ministerial consent.

TotalEnergies has set a global asset sales target of about $3.5bn in 2025, spanning oil, gas and renewables, as part of efforts to streamline its portfolio and cut debt. Chief executive Patrick Pouyanné outlined the divestment programme earlier this year. The French major continues to hold interests in 15 oil licences in Nigeria, producing approximately 14,000 barrels of oil equivalent per day in 2023, along with three gas licences that supply 40% of the feedstock for Nigeria LNG.

SNEPCo, a deepwater operating subsidiary of Shell separate from its onshore JV interests, already operated OML 118 with a 55% holding. Following the sale, its stake will rise to 65%, while Esso Exploration and Production Nigeria retains 20% and NAE 15%.

The Bonga field, which began production in 2005, has a nameplate capacity of around 200,000 barrels per day (bpd) and remains among Nigeria’s largest deepwater producers. Deepwater operations overall account for roughly one-third of Nigeria’s crude output.

NUPRC said in its approval note that the decision was based on compliance with regulatory requirements and confirmation of funding. The commission added that securing long-term investment in OML 118 was critical to Nigeria’s strategy of sustaining offshore production under the Petroleum Industry Act (PIA) framework.

Earlier in September, NUPRC's chief executive said the regulator had cleared 94 oilfield decommissioning and abandonment plans worth $4.42bn since April 2023, arising from all Field Development Plans (FDPs) submitted within this period – underscoring the tightening of rules to safeguard state finances.