Abuja, Nigeria – November 25, 2025 – TotalEnergies (TTE:EPA) has officially completed the divestment of its 12.5% non-operated interest in Nigeria's prolific Bonga deepwater oil field, marking a significant strategic move that reconfigures its presence in the West African nation. The transaction, valued at an aggregated $510 million, sees existing partners Shell Nigeria Exploration and Production Company Ltd (SNEPCo) and Nigerian Agip Exploration, a subsidiary of Eni (ENI:BIT), increase their stakes in the crucial Oil Mining Lease (OML) 118 Production Sharing Contract (PSC).
This divestment aligns with TotalEnergies' global strategy to optimize its upstream portfolio, focusing on assets with lower technical costs and reduced emissions, while freeing up capital for other strategic investments. For Nigeria, the transaction underscores a renewed investor confidence in its deepwater sector, with major international players consolidating their positions in key offshore assets, even as the broader industry navigates the complexities of energy transition and local content development.
Detailed Coverage: A Strategic Recalibration in Nigeria's Deepwater
The divestment by TotalEnergies EP Nigeria involved its 12.5% non-operated stake in the OML118 PSC, which includes the Bonga deepwater field, located approximately 120 km south of the Niger Delta. The Bonga field, Nigeria's first deepwater development, commenced production in 2005 and has been a cornerstone of the nation's offshore oil output. TotalEnergies' share of production from OML 118 in 2024 was approximately 11,000 barrels of oil equivalent per day (boe/d).
The $510 million transaction saw Shell Nigeria Exploration and Production Company (SNEPCo), already the operator of the Bonga field, acquire an additional 10% interest, raising its stake in OML 118 from 55% to 65%. Nigerian Agip Exploration (NAE), a subsidiary of the Italian energy giant Eni (ENI:BIT), exercised its pre-emption rights to acquire the remaining 2.5% interest, increasing its total holding in the Bonga PSC from 12.5% to 15%. Esso Exploration and Production Nigeria, a subsidiary of ExxonMobil, retains its 20% interest in the OML118 PSC.
The timeline leading up to this finalization saw TotalEnergies initially announce the agreement in May 2025, with regulatory approvals from Nigerian authorities following in September 2025. The official completion on November 25, 2025, marks the culmination of this strategic re-evaluation. Key players involved included TotalEnergies as the seller, with Shell (SHEL:LON) and Eni (ENI:BIT) as the acquiring parties, and the Nigerian regulatory bodies overseeing the approval process. Initial market reactions have generally viewed the transaction as a strategic portfolio adjustment for TotalEnergies, enabling capital redeployment, and a reinforcement of commitment by Shell and Eni to Nigeria's deepwater prospects.
Corporate Chessboard: Winners and Losers in the Divestment
The divestment by TotalEnergies (TTE:EPA) in the Bonga field creates clear winners and losers, reshaping the operational dynamics for major international oil companies (IOCs) in Nigeria.
TotalEnergies (TTE:EPA) emerges as a strategic winner from this transaction. The sale of a non-operated interest aligns perfectly with its global strategy of "high-grading" its upstream portfolio. By shedding assets where it lacks operational control, TotalEnergies can reduce its exposure to operational complexities and liabilities while focusing on assets with lower technical costs and reduced emissions. The $510 million in proceeds provides capital for debt reduction or investment in core areas, such as its operated gas and offshore oil assets in Nigeria, including the Ubeta project, designed to sustain gas supply to Nigeria LNG. While it loses a direct share of Bonga's production, this move is about optimizing its global footprint and enhancing financial discipline rather than a full retreat from Nigeria, where it maintains significant operated assets and a robust downstream network.
Shell (SHEL:LON) and Eni (ENI:BIT) are the immediate beneficiaries of this divestment. Shell Nigeria Exploration and Production Company (SNEPCo), by increasing its stake to 65%, solidifies its operational dominance and influence over the Bonga field, a vital deepwater asset. This increased commitment complements Shell's recent Final Investment Decision (FID) on the Bonga North deepwater project, a subsea tie-back to the existing Bonga Floating Production Storage and Offloading (FPSO) vessel, which aims to unlock significant new production. For Shell, this acquisition underscores its sustained focus on offshore oil production in Nigeria, in stark contrast to its strategy of divesting from onshore operations plagued by security and environmental challenges. Similarly, Nigerian Agip Exploration, a subsidiary of Eni (ENI:BIT), by acquiring an additional 2.5% interest and raising its stake to 15%, strengthens its deepwater presence in Nigeria, reinforcing its long-term commitment to the region's offshore sector. Both companies incur the acquisition cost but gain increased exposure to a high-value, producing asset.
Other stakeholders include ExxonMobil, through its subsidiary Esso Exploration and Production Nigeria, which maintains its 20% stake in OML 118. Its position remains unchanged, and its fortunes will continue to be tied to the overall performance and expansion projects of the Bonga field. The Nigerian National Petroleum Company Limited (NNPC), as a key partner in the OML 118 PSC, benefits from the continued investment and commitment of the acquiring IOCs, which contributes to Nigeria's oil output targets and long-term revenue streams. Furthermore, the acquiring companies bear TotalEnergies' share of decommissioning and abandonment liabilities for the divested interest, which is a positive for the NNPC. While not directly involved in this deepwater transaction, Nigerian indigenous oil companies continue to benefit from the broader trend of IOC divestments, particularly in onshore and shallow-water assets. This allows local firms to expand their portfolios and play a more significant role in the Nigerian oil and gas sector, albeit with inherent challenges related to funding, infrastructure, and security.
Wider Significance: Energy Transition and Nigerian Resilience
TotalEnergies' divestment from Nigeria's Bonga field is more than just a corporate transaction; it's a microcosm of the profound strategic reorientation sweeping through the global oil and gas industry and a testament to Nigeria's evolving energy landscape. This move fits squarely into several broader industry trends, most notably the global energy transition and the relentless drive for portfolio optimization among International Oil Companies (IOCs).
IOCs worldwide are under increasing pressure to decarbonize their operations, reduce emissions, and allocate capital towards more sustainable and lower-carbon ventures. For TotalEnergies, this means prioritizing assets with lower technical costs and reduced emissions, thereby lowering its cash breakeven point. Its strategic pivot in Nigeria towards operated gas and offshore oil assets, such as the Ubeta project aimed at supplying Nigeria LNG, exemplifies this shift. This is a common theme among majors who are streamlining their asset bases, shedding non-core or higher-cost assets to concentrate on high-value, often operated, opportunities that align with their net-zero ambitions and Environmental, Social, and Governance (ESG) commitments.
The ripple effects on competitors and partners are significant. Shell (SHEL:LON) and Eni (ENI:BIT), by consolidating their stakes in Bonga, are doubling down on Nigeria's deepwater potential. This reinforces Shell's position as a dominant operator in the deepwater segment, especially following its recent Final Investment Decision on Bonga North. This also indicates a clear differentiation in IOC strategies: while some are divesting entirely from certain regions or asset types, others are strategically consolidating in high-potential areas. This could lead to further consolidation among the remaining IOCs in deepwater fields or a more pronounced shift in investment focus towards regions with lower operational risks and clearer regulatory environments. For indigenous Nigerian companies, the ongoing divestments by IOCs, particularly in onshore and shallow-water assets, continue to create substantial opportunities for growth and increased local participation, albeit with inherent challenges related to funding and operational complexities.
From a regulatory and policy perspective, Nigeria's ability to facilitate such transactions efficiently is crucial. The timely approval of the Bonga sale by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) signals that the regulatory framework is functional and responsive. The Petroleum Industry Act (PIA) of 2021 and Nigeria's local content policies are designed to attract investment and promote indigenous participation. The current wave of IOC divestments offers a "golden opportunity" for Nigerian companies to increase their share of production and develop local expertise. However, challenges persist regarding the capacity of local firms to manage environmental liabilities, invest adequately in exploration, and secure financing. The government's consistent implementation of the PIA and its commitment to a stable operating environment will be key to sustaining investor confidence.
Historically, IOC divestments in Nigeria are not new, having begun around 2006 and accelerating from 2010, primarily involving onshore and shallow-water assets due to security concerns, oil theft, and community unrest. TotalEnergies' Bonga divestment, while from a deepwater non-operated stake, reflects a similar strategic recalibration. It signifies a move by some IOCs towards consolidating operations in fewer, high-value, and often operated deepwater or gas assets, where they can maintain greater control over costs and emissions. This contrasts with the simultaneous trend of other IOCs offloading their onshore/shallow-water assets to focus more on deepwater operations, indicating a complex and multi-faceted industry re-alignment.
What Comes Next: Navigating a Dynamic Future
The completion of TotalEnergies' (TTE:EPA) divestment from the Bonga field on November 25, 2025, sets the stage for a dynamic future for the involved companies and the Nigerian offshore oil sector. This strategic move signals both short-term adjustments and long-term possibilities, driven by evolving energy landscapes and corporate priorities.
In the short-term (next 1-2 years), TotalEnergies is expected to redeploy the $510 million from the Bonga sale into its priority projects, particularly its operated gas and offshore oil assets in Nigeria, such as the Ubeta development, and potentially other global ventures aligned with its energy transition strategy. The company will continue to focus on maintaining its significant production levels from its remaining Nigerian assets and leveraging its extensive downstream network. For Shell (SHEL:LON) and Eni (ENI:BIT), their increased stakes in Bonga will likely lead to accelerated development and optimization efforts within OML 118, potentially boosting production from the field, especially with Shell's Bonga North project moving forward. Nigeria's deepwater sector will likely see increased activity and investment, reinforced by the government's supportive policies aimed at attracting foreign direct investment.
Looking at the long-term (next 5+ years), TotalEnergies is poised to strengthen its position as a key player in Nigeria's gas value chain and operated deepwater assets, aligning with its global strategy to focus on gas and integrated energy solutions. Its strategic partnerships with indigenous companies like Conoil also signal a long-term commitment to the Nigerian market. Shell and Eni are expected to further solidify their deepwater footprints in Nigeria, with Shell focusing on large-scale deepwater oil and gas projects and Eni emphasizing deepwater, LNG, and decarbonization initiatives. Both companies view Nigeria's vast gas reserves as crucial for their global LNG growth and energy transition objectives. The Nigerian offshore oil sector itself is anticipated to become more diversified, with a stronger emphasis on gas and potential growth in renewable energy, though oil will remain crucial for revenue. Indigenous companies are expected to continue maturing, potentially venturing into more complex offshore operations, provided they secure adequate financing and technological partnerships.
Potential strategic pivots will see IOCs increasingly prioritize large-scale, high-margin deepwater and gas projects in Nigeria, where operational control and efficiency are paramount. This contrasts with their gradual exit from challenging onshore and shallow-water assets, which are increasingly being taken over by indigenous firms. This shift underscores a broader industry pivot towards de-risking portfolios and aligning investments with long-term sustainability goals. Market opportunities will emerge in enhanced deepwater exploration and development, particularly with renewed interest in frontier basins. The gas sector presents significant opportunities for both domestic supply and export, positioning Nigeria as a key gas producer. However, challenges include the consistent implementation of the Petroleum Industry Act (PIA), ensuring regulatory stability, securing long-term funding for indigenous firms, and mitigating global energy transition pressures that could impact future hydrocarbon investments. The long-term success hinges on Nigeria's ability to provide a stable, attractive investment climate and address environmental concerns.
Wrap-up: A New Chapter for Nigeria's Offshore Oil
TotalEnergies' (TTE:EPA) divestment of its 12.5% non-operated interest in Nigeria's Bonga deepwater oil field marks a pivotal moment, reflecting a strategic recalibration by a global energy major and signaling a new chapter for the Nigerian offshore oil sector. The $510 million transaction, finalized on November 25, 2025, underscores a confluence of global energy transition imperatives and localized strategic priorities.
The key takeaways from this event are clear: TotalEnergies is actively optimizing its global portfolio, shedding non-operated assets to focus on high-value, lower-emission, and operated projects, particularly in gas, within Nigeria. For Shell (SHEL:LON) and Eni (ENI:BIT), the increased stakes in OML 118 reinforce their commitment to Nigeria's deepwater sector and their strategic intent to consolidate positions in key producing assets. This transaction is not an exit from Nigeria but a strategic repositioning, emphasizing a move towards gas and large-scale deepwater operations.
Moving forward, the Nigerian offshore oil market appears to be on a path of revitalized investment, particularly in the deepwater segment. Recent Final Investment Decisions (FIDs) and the government's proactive reforms, including the Petroleum Industry Act (PIA), are attracting renewed interest. The sector is poised for increased activity, with a strong focus on harnessing vast deepwater gas reserves to meet both domestic demand and expand LNG exports. While indigenous companies continue to grow their footprint in onshore and shallow-water assets, IOCs are increasingly concentrating on the more capital-intensive and technologically demanding deepwater projects.
The significance and lasting impact of this divestment lie in its contribution to a more capital-efficient Nigerian deepwater sector, supported by a clearer regulatory framework and a strategic focus from committed IOCs on large, productive assets. It reinforces Nigeria's push towards gas as a transition fuel, with TotalEnergies' pivot towards gas projects being a notable example. This event also highlights the ongoing transformation of Nigeria's oil and gas landscape, with a gradual shift in ownership and operational focus, potentially leading to a more diversified and locally empowered industry in the long run.
Investors should watch for several key indicators in the coming months. Firstly, the realization of further deepwater FIDs in Nigeria will be crucial for sustained production growth. Secondly, monitor the progress of key projects like Shell's Bonga North and TotalEnergies' Ubeta gas project for operational milestones and production outlooks. Thirdly, the consistent implementation and impact of the PIA on attracting and retaining foreign direct investment will be a critical watch point. Lastly, observe any further significant portfolio adjustments by other international oil companies in Nigeria, as these could signal broader industry trends regarding asset optimization and energy transition strategies. The stability of global oil prices and Nigeria's internal security environment will also remain fundamental factors influencing investment decisions.
This content is intended for informational purposes only and is not financial advice