Natalie Nyathi
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved a $510 million deal that allows TotalEnergies Exploration and Production Nigeria Limited to sell its 12.5% interest in Oil Mining Lease (OML) 118 to Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE). This decision is an important step in Nigeria’s oil and gas sector, showing changes in ownership and the country’s focus on regulation.
Under the deal, TotalEnergies will transfer a 10% interest to SNEPCo for $408 million, while NAE will buy the remaining 2.5% for $102 million. The transaction still needs ministerial consent, as required by the Petroleum Industry Act.
The NUPRC’s approval followed careful checks to confirm the financial and technical abilities of SNEPCo and NAE. The Commission found that both companies have the skills and resources to manage exploration, development, and production in OML 118, where they already have interests.
With this deal, Shell will raise its stake in the Bonga field to 67.5%, strengthening its role in Nigeria’s deepwater sector. The Bonga oilfield, Nigeria’s first deepwater discovery, has been crucial for the country’s oil output since it started production in 2005. Continuing its development is vital for reversing Nigeria’s declining oil production, which has struggled to reach pre-pandemic levels.
A key part of the approval is that SNEPCo and NAE will take on TotalEnergies’ responsibilities for decommissioning, abandonment, and community obligations related to the divested stake. This move helps protect the Federal Government from any leftover responsibilities. SNEPCo and NAE will also need to pay fees for ministerial consent and processing.
This transaction is part of a larger trend in Nigeria’s oil sector, where International Oil Companies are selling off onshore and shallow-water assets to simplify their portfolios and reduce risks. Regulators are also enforcing stricter rules on decommissioning and community responsibilities. The Nigerian government is looking for new oil and gas investments to support economic growth. The NUPRC has reported that its reform plans in the oil and gas sector have opened up significant development opportunities for 2025, showing renewed interest from investors.
TotalEnergies, while selling some assets, continues to be active in Nigeria’s oil sector, focusing on deepwater projects and gas development. The company is working on the Ubeta project to maintain gas supply to Nigeria LNG. For Shell and Agip, this acquisition strengthens their positions in one of Nigeria’s key offshore oil blocks.