Nigeria’s oil regulator has approved a $510 million deal for TotalEnergies to divest its entire 12.5 per cent stake in Oil Mining Lease (OML) 118, home to the Bonga deepwater oilfield, to Shell and Agip.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the decision on Thursday, confirming that Shell Nigeria Exploration and Production Company (SNEPco) will acquire 10 per cent of the interest for $408 million, while Nigerian Agip Exploration Limited (NAE) will take the remaining 2.5 per cent for $102 million.

The approval, granted under Section 95 of the Petroleum Industry Act (PIA) 2021, followed what the regulator described as “a thorough due diligence process”‘

According to the Commission’s Head of Media and Strategic Communications, both SNEPco and NAE “have demonstrated technical and managerial competence to optimally contribute to upstream operations in OML 118. They already maintain participating interests in the asset and have access to sufficient funding to meet their financial obligations.”

With this acquisition, Shell will raise its stake in the Bonga field to 67.5 per cent, strengthening its position in Nigeria’s deepwater sector. Notably, the company recently sold its onshore assets to Renaissance, a consortium of Nigerian and international investors, citing security and environmental challenges.

The NUPRC confirmed that SNEPco and NAE will assume all decommissioning, abandonment, and host community obligations previously owed by TotalEnergies. “We are ensuring that liabilities are transferred along with the assets, in line with the PIA. This protects the Federal Government’s interests and strengthens accountability in the sector,” the regulator stated.

The transaction remains subject to ministerial consent. Under the terms of approval, SNEPco is required to pay 5 per cent and NAE 2 per cent of the deal’s total value as premiums for ministerial consent and processing fees.

For TotalEnergies, the divestment forms part of a wider portfolio rebalancing strategy. While the French major has exited several onshore and shallow water operations in Nigeria, it continues to invest in deepwater and gas projects. Industry experts say the move reflects a broader trend of international oil companies streamlining their portfolios in Africa to focus on less risky, higher-value assets.

The Bonga oilfield, Nigeria’s first deepwater discovery, has been a cornerstone of the country’s crude oil output since it came onstream in 2005. Its continued development is seen as critical to reversing Nigeria’s declining production, which has struggled to rebound to pre-pandemic levels of about 2 million barrels per day.

The approval comes just days after the NUPRC revoked a separate $860 million deal involving TotalEnergies and Mauritius-based Chappal Energies, citing failure to meet financial commitments. The move highlights the Commission’s tougher stance on ensuring compliance and financial accountability in asset transfers.

For Nigeria, the Shell-Agip acquisition represents more than a change of ownership. It is also a test of the country’s ability to balance IOC divestments with its drive to attract fresh capital into the energy sector.