LONDON (ShareCast) - (Sharecast News) - Shell announced on Thursday that it is to increase its stake in Nigeria's deep-water Bonga field in a deal worth $510m.
Shell Nigeria Exploration and Production Company, otherwise known as SNEPCo, is currently the operator of the OML 118 production sharing contract, an oil mining lease that includes the Bonga field located 120 km south of the Niger Delta in Nigeria.

The oil major is raising its stake from 55% to 67.5% through the purchase of TotalEnergies EP Nigeria's 12.5% interest.

Shell said the investment was part of its strategy to grow is combined Integrated Gas and Upstream total production by 1% per year to 2030 and contributes towards sustaining liquids production at 1.4m barrels per day.

"Following our final investment decision on Bonga North last year, 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 president of Upstream.

The deal is still subject to regulatory approvals and other closing conditions, but is expected to be completed before the end of this year.

The other partners in OML 118 are Esso Exploration and Production Nigeria (20%) and Nigerian Agip Exploration (12.5%).

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