TotalEnergies Divests Bonga Stake as Seplat, NLNG Lead New Era in Nigeria’s Energy Sector

In a strategic shift poised to reshape the dynamics of Nigeria’s energy industry, French oil giant TotalEnergies has announced the sale of its 12.5% non-operated stake in the Bonga oilfield to Shell Nigeria Exploration and Production Company (SNEPCo) for $510 million. The move reflects a broader industry trend among international oil companies (IOCs) transitioning toward lower-emission portfolios and gas-focused investments amid shifting global energy priorities.

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TotalEnergies Prioritizes Gas, Offshore Assets

TotalEnergies confirmed in a statement that the transaction, still subject to regulatory approvals by Nigerian authorities, is part of a global strategy to streamline its upstream portfolio. Nicolas Terraz, President of Exploration and Production at TotalEnergies, said the company is prioritizing low-technical-cost and low-emission assets while reducing its operational breakeven point.

The Bonga oilfield, located about 120 kilometers offshore from the Niger Delta, is part of the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC). Operated by SNEPCo with a 55% stake, other partners include ExxonMobil’s Esso (20%), TotalEnergies (12.5%), and Nigerian Agip Exploration (12.5%). Bonga began production in 2005, while its northern extension, Bonga North, commenced development in 2024.

Despite its stake in the Bonga field contributing around 11,000 barrels per day to TotalEnergies’ production in 2024, the French major is redirecting its focus toward gas and offshore operations it directly controls. One of its key developments in Nigeria is the Ubeta project, aimed at bolstering gas supplies to the Nigeria Liquefied Natural Gas (NLNG) venture.

This announcement follows TotalEnergies’ sale in July 2024 of its 10% stake in the Shell Petroleum Development Company (SPDC) joint venture to Chappal Energies for $860 million. That deal included 15 oil and three gas-producing licenses in the Niger Delta, further signaling TotalEnergies’ pivot away from complex onshore assets.

Seplat Energy’s Expansion Signals Indigenous Leadership

While global majors divest, indigenous companies like Seplat Energy are rapidly ascending. Seplat’s recent acquisition of Mobil Producing Nigeria Unlimited (MPNU) is described by its CEO, Roger Brown, as a “game-changer” that doubled Seplat’s reserves and tripled its production capacity to over 120,000 barrels per day.

Operating in 11 blocks — seven onshore and four offshore — Seplat now manages infrastructure linked to three terminals, allowing for a fully integrated value chain from wellhead to export.

“Our offshore blocks have vast gas potential,” Brown said in an interview. “This gas is crucial for domestic power, industrial use, and LNG projects, both through Nigeria LNG and upcoming floating LNG initiatives.”

Seplat is actively developing gas processing plants, targeting a processing capacity of 1 billion cubic feet per day. The company has emphasized its commitment to ending routine gas flaring and integrating artificial intelligence for predictive maintenance, seismic analysis, and infrastructure monitoring.

Brown highlighted Seplat’s ambition to introduce modular gas-to-power systems to off-grid communities, bridging electricity access gaps and driving sustainable development. He stressed, “Affordable, reliable energy is essential for job creation, education, and healthcare. Gas is Nigeria’s best bet for base-load electricity.”

Additionally, Seplat is investing heavily in Nigerian talent. Its graduate trainee program recently onboarded 50 new professionals out of over 10,000 applicants. Collaborations with universities aim to realign curricula with industry needs, focusing on Science, Technology, Engineering, Arts, and Mathematics (STEAM).

Governance and transparency remain pillars of Seplat’s strategy. Brown praised President Bola Tinubu’s commitment to foreign direct investment, pointing to the transparency and diligence involved in the MPNU transaction. “With two Seplat board members now on the NNPCL board, Nigeria is clearly signaling institutional progress,” Brown noted.

NLNG’s Train 7 Project Expands Human Capital Development

Furthering Nigeria’s domestic capacity goals, Nigeria Liquefied Natural Gas Limited (NLNG) launched a supplementary training program under its Train 7 Project Human Capital Development (HCD) initiative. The training, rolled out in Port Harcourt, underscores NLNG’s mission to equip Nigerian youths with industry-relevant skills while meeting local content mandates.

NLNG’s Nigerian Content Development Manager, Dagogo Buowari, said the program combines classroom instruction with field-based experience, offering a comprehensive launchpad for professional growth. “This is not just a training programme — it is a platform for long-term success,” Buowari stated.

The Train 7 expansion, expected to raise NLNG’s production capacity from 22 million tons per annum (mtpa) to 30 mtpa, is central to Nigeria’s ambition to remain a key player in global gas supply. The program provides mentorship, health coverage, emotional support, and structured career guidance for trainees, reinforcing NLNG’s holistic approach to workforce development.

NLNG emphasized that the program’s impact goes beyond employment. By producing well-rounded professionals, the initiative supports broader goals of economic empowerment and national self-sufficiency in energy services.

Buowari also praised NLNG staff and project teams for their efforts in making the initiative a success. “This program aligns with Nigeria’s vision for inclusive growth, local content, and youth empowerment,” he said.

Nigeria’s Energy Transition: A Strategic Pivot

The shifting landscape of Nigeria’s oil and gas sector, as exemplified by TotalEnergies’ divestments and Seplat and NLNG’s aggressive expansions, illustrates a broader narrative of transformation. While international oil companies refocus on cleaner energy and lower-risk portfolios, domestic champions are stepping up to take the lead.

Seplat’s integration of technology, governance, local empowerment, and environmental stewardship sets a new benchmark for indigenous operators. Meanwhile, NLNG’s commitment to human capital development underlines the sector’s long-term value to the Nigerian economy.

These developments arrive at a crucial juncture in the global energy transition. For Nigeria — where millions still lack access to electricity — natural gas remains the bridge to a more sustainable future. Domestic companies are now not only inheriting the operational mantle but also reimagining Nigeria’s role in the energy world.

As the global focus shifts toward cleaner and more inclusive energy systems, Nigeria’s evolving landscape — powered by homegrown innovation and strategic leadership — suggests a promising path forward. With coordinated public-private collaboration, robust governance, and sustained investment in people and technology, Nigeria is poised to lead Africa into a resilient energy future.