The Federal Government has reaffirmed its commitment to driving crude oil production growth through strategic collaborations with international oil companies (IOCs), even as TotalEnergies announced the transfer of its stake in the Bonga North field to Shell.
The announcement came during a high-level meeting in Abuja between Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Mr. Nicolas Terraz, President, Exploration & Production at TotalEnergies SE.
Mr. Terraz, who led the delegation, provided updates on TotalEnergies’ current and future projects in Nigeria, highlighting the company’s continuous drilling activities, stability of production, and its long-term energy strategy.
According to him, the company’s recent divestment of its Bonga North stake to Shell is part of a broader portfolio rebalancing strategy.
“TotalEnergies remains deeply committed to Nigeria’s energy future.
While we have responsibly restructured our portfolio through the Bonga North divestment, we are equally increasing our footprint with projects like Ubeta, which reflect our long-term vision and partnership with Nigeria,” Terraz said.
The Ubeta project, currently in development, is positioned as one of the company’s key contributions to Nigeria’s energy sector, aimed at supporting both domestic energy demand and export potential.
In his response, Senator Lokpobiri praised TotalEnergies as a reliable partner that has consistently demonstrated commitment to Nigeria’s upstream oil and gas sector.
He stressed that the government is determined to sustain investor confidence by providing favorable policies and incentives.
“Our support and incentives as a government have inspired an upward trajectory in production.
The implementation of deepwater incentives is crucial to sustaining this momentum and avoiding stagnation in upstream growth,” the minister stated.
Lokpobiri emphasized that continuous drilling and new investments are critical if Nigeria is to meet its crude oil production targets. He noted that the administration is not opposed to divestments but insists that companies taking over assets must demonstrate the technical and financial capacity to manage them effectively.
“We welcome divestments and farm-outs where necessary, but the most important thing is that assets must not be abandoned.
Every operator must show a capacity to invest, because only through such investments can we achieve our shared objectives of increased output and energy security,” he added.
The meeting highlighted the importance of sustained collaboration between the Nigerian government and international oil companies.
With oil still accounting for the bulk of Nigeria’s foreign exchange earnings, stakeholders agree that improved production levels are key to stabilizing government revenue and funding national development.
Industry observers note that Shell’s acquisition of TotalEnergies’ stake in Bonga North could enhance project execution, given Shell’s longstanding expertise in deepwater exploration in Nigeria.
The Bonga field, Nigeria’s first deepwater oil discovery, has been a critical contributor to the country’s output since production began in 2005.
Analysts believe that the FG’s renewed focus on incentives, coupled with the restructuring of IOCs’ portfolios, could unlock new growth opportunities in Nigeria’s energy sector.
Already, the government has set ambitious targets to raise crude oil output to at least 2 million barrels per day, up from the current average of about 1.5 million barrels.
The Ubeta gas project, along with other deepwater initiatives, is expected to complement Nigeria’s push for energy diversification, as natural gas increasingly becomes central to the nation’s domestic power supply and global liquefied natural gas (LNG) exports.
Furthermore, the government has signaled its intention to strengthen regulatory certainty and improve security in oil-producing regions, a move expected to attract more foreign direct investment.
Energy experts welcomed the partnership renewal between Nigeria and TotalEnergies, noting that despite divestments, the French energy giant has maintained one of the strongest commitments among IOCs in the country.
Dr. Chinedu Onyema, an oil and gas analyst based in Lagos, said:
“What we are seeing is a rebalancing of portfolios by IOCs. Divestments do not mean exits; they often free up capital for reinvestment in other strategic projects.
For Nigeria, the key is to ensure new operators are credible and that government provides stability.”
The renewed partnership between the Federal Government and TotalEnergies, alongside the Bonga North stake transfer to Shell, marks another chapter in Nigeria’s evolving energy landscape.
With incentives, increased drilling, and strategic collaboration, Nigeria aims to boost crude oil production, meet its OPEC quota obligations, and strengthen its position in the global energy market.
As Senator Lokpobiri reiterated, Nigeria’s priority remains clear: sustained investment, increased output, and a future-proofed oil and gas sector capable of driving national prosperity.