NIGERIA : TotalEnergies sells its stake to Shell for over 500 million dollars

(LVDE) – The strategic operation that enabled TotalEnergies EP Nigeria to finalize the sale of its non-operated 12.5% stake in block OML118 for 510 million dollars was completed on November 25, 2025. This move allows Shell to strengthen its presence on a key offshore asset as part of a broader portfolio restructuring.

Nigeria’s oil sector is entering a new phase with the sale by TotalEnergies EP Nigeria (Tepng) of its non-operated 12.5% interest in block OML118. This offshore asset, home to the mature Bonga oil field, was sold to Shell for 510 million USD—approximately 340 billion CFA francs. The transaction also involved Nigerian Agip Exploration, a subsidiary of Italian giant ENI, which acquired an additional 2.5%, increasing its total stake to 15%.

In practical terms, TotalEnergies does not directly operate the Bonga field. The company receives a portion of the revenues while contributing to costs proportional to its stake. Shell, as the operator, makes all operational decisions regarding the asset. Following the transaction, Shell’s interest in block OML118 increases from 55% to 65%, strengthening its dominant role, while Agip boosts its share, further consolidating its position in this strategic field.

This divestment is part of TotalEnergies’ broader strategy to reassess its upstream asset portfolio. By selling mature assets, the group aims to free up financial resources to reinvest in projects with higher profitability potential. This approach aligns with a strict financial discipline aimed at optimizing investments during a period of rigorous project selection.

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At the same time, TotalEnergies recently acquired an operated 50% stake in block OPL257 from Conoil Producing Limited, raising its interest in that area to 90%. Within just a few days, the group has adjusted its footprint in the Nigerian market—reducing passive investments while shifting its focus toward high-potential operational assets.

Nigeria remains crucial for TotalEnergies, with projected production reaching 209,000 barrels of oil equivalent per day in 2024. Beyond production, the group operates a network of 540 service stations, effectively combining downstream distribution with upstream output, making the country a strategic growth market.

For Shell, this acquisition strengthens its position in the offshore Bonga field, a major contributor to Nigeria’s oil output. Agip also benefits, consolidating its footprint in a sector with significant potential. This partnership illustrates not only a strategic alliance within Nigeria’s energy market but also a well-considered decision grounded in the revenue streams generated by the Bonga field.

The transaction showcases TotalEnergies’ ability to optimize its assets and streamline its portfolio in a constantly evolving energy landscape. By focusing on high-value blocks while divesting assets that no longer align with its financial objectives, the group demonstrates its adaptability in the face of market challenges.

This strategic move reflects the broader global oil and gas dynamic, where major companies must continually adjust their strategies to navigate market fluctuations and rising expectations regarding sustainability and efficiency. Through this operation, TotalEnergies provides a clear illustration of how energy majors maneuver through these sometimes turbulent waters in pursuit of profitability and operational innovation.

By Sorelle Ninguem