Shell increases Bonga stake to 65% as NUPRC clears $510m TotalEnergies divestment

By Olakunle Oke

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a $510 million divestment by TotalEnergies, which will see the French oil major exit its 12.5 per cent stake in Oil Mining Lease (OML) 118 home to the offshore Bonga field with Shell and Agip taking over the interest.

Under the deal, Shell will acquire 10 per cent for $408 million, raising its stake in Bonga to 65 per cent, while Agip will take the remaining 2.5 per cent for $102 million.

The regulator said both Shell Nigeria Exploration and Production Company (SNEPco) and Nigerian Agip Exploration (NAE) have demonstrated the technical and managerial capacity to manage the asset.

The transaction, which remains subject to ministerial consent, also requires the buyers to assume all decommissioning, abandonment, and community obligations tied to the divested stake.

In addition, Shell and Agip will pay a combined 7 per cent of the deal value as premium and processing fees.

The approval underscores Shell’s renewed commitment to offshore operations in Nigeria, coming shortly after it completed the sale of its onshore assets to Renaissance, a consortium of four local firms and an international partner.

Meanwhile, NUPRC recently revoked its earlier approval of TotalEnergies’ planned $860 million asset sale to Mauritius based Chappal Energies after both parties failed to meet financial obligations required to conclude the deal.