Shell is set to deepen its investment in Nigeria’s offshore energy sector with a move to increase its stake in the Bonga deepwater oil field, signaling renewed long-term commitment to one of West Africa’s most strategic hydrocarbon assets.
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The Bonga field, located in Oil Mining Lease (OML) 118 approximately 120 kilometers offshore Nigeria, was the country’s first deepwater development and has been in production since 2005. Operated by Shell Nigeria Exploration and Production Company (SNEPCo), the asset is jointly held with partners including TotalEnergies, Eni, and the Nigerian National Petroleum Company Limited (NNPC).
Industry sources indicate that Shell’s increased equity interest will be executed through a restructured agreement under Nigeria’s recently reformed Petroleum Industry Act (PIA), which aims to improve fiscal clarity and attract fresh investment into upstream assets.
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The move comes as Shell repositions its global portfolio toward more profitable and lower-carbon oil projects, with Nigeria remaining central to its strategy in sub-Saharan Africa. The expansion is expected to unlock further drilling campaigns and possibly support the planned Bonga North development, projected to add significant barrels to national output.
Energy analysts see the decision as a vote of confidence in Nigeria’s offshore regulatory environment and a potential trigger for renewed capital inflows into deepwater exploration, at a time when onshore divestments by international oil companies are accelerating.
