Core Viewpoint - Shell plc has increased its stake in Nigeria's OML 118 Production Sharing Contract from 55% to 65%, demonstrating its commitment to enhancing upstream output in the region [1][2]. Group 1: Acquisition Details - The acquisition was executed through Shell Nigeria Exploration and Production Company (SNEPCo) and follows a previous investment decision on the Bonga North project, aligning with Shell's strategy to focus on high-return existing assets [2][4]. - Initially, Shell expected to acquire a 12.5% interest, but Nigerian Agip Exploration exercised pre-emption rights, reducing Shell's incremental gain to 10% [3]. - The updated ownership structure now includes SNEPCo at 65% (operator), Esso Exploration and Production Nigeria at 20%, and Agip at 15%, with all partners operating on behalf of the Nigerian National Petroleum Company (NNPC) [3]. Group 2: Strategic Implications - This acquisition supports Shell's target to grow combined Integrated Gas and Upstream production by approximately 1% annually until 2030, helping to secure a liquids output of 1.4 million barrels per day [4]. - The Bonga North expansion is anticipated to tap several hundred million barrels of oil equivalent, potentially reversing Nigeria's offshore decline, contingent on improved fiscal and regulatory stability [5]. - The increased stake reflects confidence in Nigeria's upstream potential and the long-term importance of deep-water assets in Shell's portfolio strategy [6].