Shell Nigeria Exploration and Production Company ( SNEPCo ) is acquiring a 12.5% stake in a Nigerian oilfield from TotalEnergies EP Nigeria Limited.

The acquisition involves the OML 118 Production Sharing Contract ( OML 118 PSC ), an oil mining lease offshore Nigeria that includes the Bonga field. Upon completion, the deal increases Shell’s interest in the area from 55% to 67.5%.

SNEPCo is the operator under the OML 118 PSC. It currently produces from the Bonga field via the Bonga Floating Production Storage and Offloading ( FPSO ) vessel.

“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,” says Peter Costello, Shell’s president, upstream.

The transaction is expected to be completed before the end of this year. SNEPCo will then operate the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd ( 20% ), and Nigerian Agip Exploration Ltd ( 12.5% ), on behalf of the Nigerian National Petroleum Company Limited ( NNPC ).

Shell says the investment contributes towards growing its combined integrated gas and upstream production by 1% per year until 2030 and sustaining 1.4 million barrels per day of liquids production.

The Bonga field is a deep-water development located in OML 118, at water depths exceeding 1,000 metres. Production from Bonga began in 2005, with a capacity to produce 225,000 barrels of oil per day. The field produced its one-billionth barrel of crude oil in 2023.

In December 2024, Shell announced a final investment decision on Bonga North, a subsea tie-back to the Bonga FPSO. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent and is expected to reach peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.