French energy giant TotalEnergies has agreed to sell its 12.5 per cent stake in Nigeria’s offshore Bonga oilfield to Shell, the field’s operator, for $510 million.
This deal would increase Shell’s stake in Bonga to 67.5 per cent.
The Bonga oilfield, located 120 kilometers south of the Niger Delta, is part of the OML 118 block and has an expected production capacity of 250,000 barrels per day.
Shell’s upstream chief, Peter Costello, said, “This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio.
”TotalEnergies’ decision to sell its stake is part of its strategy to high-grade its upstream portfolio, focusing on assets with low technical costs and low emissions.”
Nicolas Terraz, TotalEnergies’ President of Exploration and Production, said, “TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven.
”In Nigeria, the Company is focusing on its operated gas and offshore oil assets.”
The deal, subject to regulatory approvals, is expected to close by the end of the year.
Other stakeholders in the Bonga oilfield include Exxon subsidiary Esso Exploration and Production Nigeria, which holds 20 per cent and Oando’s Agip, which owns.
