TotalEnergies has completed the sale of its 12.5 percent non-operated stake in Nigeria’s Oil Mining Lease 118 to Shell Nigeria Exploration and Production Company and Nigerian Agip Exploration for a combined 510 million dollars, marking another major step in the French energy company’s ongoing restructuring of its Nigerian portfolio.
In a statement confirming the deal, TotalEnergies said SNEPco acquired a 10 percent share for 408 million dollars, while NAE purchased the remaining 2.5 percent for 102 million dollars. The transaction received regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission on 25 September, months after TotalEnergies first announced the intended sale on 29 May.
OML 118 hosts the deepwater Bonga field, Nigeria’s first major offshore oil development and one of its most important producing assets. Operated by SNEPco, Bonga has long been a key contributor to Nigeria’s crude oil output and export earnings. The sale consolidates Shell’s position in the block and slightly expands the stake held by Eni’s Nigerian Agip subsidiary, strengthening the influence of both companies in one of West Africa’s most valuable deepwater hubs.
The divestment comes at a moment of significant transition for TotalEnergies in Nigeria. In September, NUPRC withdrew approval for the company’s separate 860 million dollar sale of onshore assets to Chappal Energies after the buyer failed to meet the regulator’s financial and technical requirements. That setback underscored the challenges international oil companies continue to face in executing divestment plans in Nigeria’s onshore and shallow-water sectors, where security risks, community disputes and regulatory friction have complicated asset transfers.
Although the Bonga transaction proceeded smoothly, it is part of a broader shift by TotalEnergies and other international oil majors, which have been gradually focusing on deepwater production and gas projects while scaling back exposure to troubled onshore terrain. The company’s decision to offload its minority position in OML 118 reflects a strategy of concentrating capital on higher-return opportunities in its global portfolio.
Analysts say the sale could have several economic implications for Nigeria’s petroleum sector. By consolidating operatorship influence under SNEPco, the transaction may streamline decision-making for future work programmes and potential field upgrades. The Bonga field, which began production in 2005, has long been viewed as a candidate for further investment to sustain output levels, though high operating costs and broader offshore uncertainties have slowed expansion efforts.
For Nigeria, a shift in ownership structure could help accelerate technical planning for new wells or enhanced recovery efforts, potentially supporting medium-term crude oil production at a time when national output has struggled to meet OPEC quotas. Improved operational certainty at Bonga may help stabilise offshore crude volumes and reinforce Nigeria’s foreign exchange earnings, which depend heavily on deepwater output due to persistent disruptions in onshore regions.
The sale also highlights continued investor appetite for Nigeria’s deepwater assets, despite regulatory complexities and rising competition from other African producers. With the Petroleum Industry Act in place and new fiscal terms gradually taking shape, international partners appear more inclined to consolidate positions in producing deepwater blocks rather than pursue riskier new frontier projects.
While the deal provides TotalEnergies with fresh capital to reallocate across its global operations, it also raises questions about the company’s long-term footprint in Nigeria. The company remains a major player in gas and offshore partnerships, but its recent divestment efforts indicate a recalibration rather than expansion.
Industry watchers will be monitoring whether the streamlined ownership structure at OML 118 results in accelerated investment decisions for Bonga and its satellite prospects. For now, the sale underscores a continuing realignment in Nigeria’s upstream sector as international oil companies balance portfolio optimisation with the operational realities of Africa’s largest hydrocarbon producer.
