Shell acquires stake in Nigeria’s OML 118 from TotalEnergies

LAGOS, May 29, 2025 – Shell Nigeria Exploration and Production Company has signed an agreement to acquire TotalEnergies EP Nigeria’s 12.5% interest in the OML 118 production sharing contract (PSC), Shell said on Thursday.

The deal increases Shell’s share in the OML 118 PSC from 55% to 67.5%, further consolidating its position as operator of the asset, which includes the Bonga and Bonga North fields. Production from Bonga is currently carried out through the Bonga FPSO vessel.

“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deepwater that contributes to sustained liquids production and growth in our Upstream portfolio,” Peter Costello, Shell’s president of upstream, said.

The Bonga field, Nigeria’s first deepwater development, began production in 2005 and has capacity for 225,000 bopd. It reached the milestone of producing 1 billion barrels of crude oil in 2023.

Shell announced the final investment decision on Bonga North in December 2024. The project, a subsea tie-back to the Bonga FPSO, holds estimated recoverable resources of more than 300 million boe and is expected to reach peak production of 110,000 bpd, with first oil anticipated before the end of the decade.

The transaction remains subject to regulatory approvals and other customary closing conditions and is expected to be completed before the end of 2025.

Photo courtesy of Shell

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