Shell Acquires Stake in Bonga Oilfield

TotalEnergies has agreed to sell its 12.5% stake in Nigeria's offshore Bonga oilfield to Shell for $510 million. This acquisition increases Shell’s ownership in he field to 67.5%, reinforcing its commitment to offshore oil production in Nigeria. The Bonga field is undergoing an expansion aimed at adding 110,000 barrels of oil equivalent per day, with production expected to begin before the end of the decade.

 Reasons for the Sale

1. Focus on Low-Carbon and Renewable Energy

• TotalEnergies, like BP and Shell, is transitioning toward cleaner energy sources and reducing its exposure to high-cost, carbon-intensive assets.

• By divesting from deepwater oil assets, they are freeing up capital to invest in solar, wind, hydrogen, and battery storage projects.

  
  

2. Portfolio Optimization

• Oil majors are regularly rebalancing their portfolios to concentrate on high-yield or strategic core areas.

• Bonga may no longer align with TotalEnergies’ current investment priorities or return expectations compared to other assets globally.

  
  

3. Cost and Operational Efficiency

• Deepwater operations like Bonga are technically challenging and expensive.

• Shell, as the operator with the largest stake, can more efficiently manage expansion and operations. TotalEnergies may see better use of capital elsewhere.