UK energy giant Shell has acquired a 12.5% stake in Nigeria’s major offshore Bonga oil field from France’s TotalEnergies in a $510 million deal, both companies confirmed on Thursday.

The move boosts Shell’s stake in the Bonga field to 67.5%, strengthening its position in Nigeria’s deepwater oil production sector.“This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,” said Peter Costello, Shell’s upstream business president.

The transaction marks TotalEnergies’ exit from a key production-sharing agreement signed in 2021 with the Nigerian government, Shell, ExxonMobil, and Eni after two years of intense negotiations.TotalEnergies said the divestment aligns with its strategic shift.

“The French firm was focusing on its operated gas and offshore oil assets in Nigeria,” noted Nicolas Terraz, TotalEnergies president for exploration and production.

The Bonga field, located in Oil Mining Lease (OML) 118 about 120 kilometers south of the Niger Delta, is expected to produce up to 250,000 barrels per day.