TotalEnergies and Shell Reshape Nigeria’s Upstream Sector with Strategic Focus on Gas and Deepwater Assets

(3 Minutes Read)

TotalEnergies is refining its upstream strategy by concentrating on assets that offer low technical costs and reduced carbon emissions, to lower its cash break even point. Nicolas Terraz, President of Exploration & Production, highlighted the company’s focus on disciplined asset management and environmental responsibility. In Nigeria, TotalEnergies is prioritising its key gas and offshore oil operations, with the Ubeta project playing a central role in sustaining long-term gas supply to the Nigeria LNG facility.

Meanwhile, Shell has completed a major divestment, selling its onshore Nigerian assets to Renaissance—a consortium of five local energy firms—in a deal worth up to $2.4 billion. This aligns with Shell’s strategic shift toward deep-water ventures and away from the operational complexities of the Niger Delta.

In a further boost to Nigeria’s deep-water output, partners in the Bonga field have approved a significant expansion, expected to deliver up to 110,000 barrels of oil equivalent per day by decade’s end. The Bonga FPSO, a critical offshore asset with a 225,000-barrel daily capacity, remains central to these efforts.

Shell’s upstream chief, Peter Costello, emphasised that the expansion reflects the company’s long-term commitment to stable liquids production and confidence in Nigeria’s deep offshore prospects. The Bonga project involves a joint venture with stakeholders, including ExxonMobil’s Esso (20%) and Oando-owned Agip (12.5%), with regulatory approvals for Shell’s asset transfer pending.

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TotalEnergies, a longstanding player in Nigeria with over 60 years of presence, continues to be a major contributor to the country’s hydrocarbon output. In 2024, the company averaged 209,000 barrels of oil equivalent per day from its Nigerian operations, employing over 1,800 personnel across its projects.