Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced its final investment decision (FID) for the Bonga North deepwater project off the coast of Nigeria.

Bonga North, a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, is expected to sustain oil and gas production at the facility. Shell operates the Bonga FPSO with a 55 per cent interest.

The project is estimated to hold more than 300 million barrels of oil equivalent (boe) in recoverable resources and is projected to reach a peak production of 110,000 barrels of oil per day. First oil from the project is anticipated before the end of the decade.

The Bonga North project involves drilling, completing, and starting up 16 wells (eight production and eight water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich said the project will sustain oil and gas production at the Bonga facility.

Yujnovich stressed that Bonga North which currently has an estimated recoverable resource volume of more than 300 million boe, will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” Yujnovich said

According to Shell, the investment in Bonga North is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s Upstream business.

SNEPCo with a 55 per cent interest operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd with 20 per cent, Nigerian Agip Exploration Ltd with 12.5 per cent, and TotalEnergies Exploration and Production Nigeria Ltd. with 12.5 per cent, on behalf of the Nigerian National Petroleum Company Limited (NNPC).

Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day while the project produced its one-billionth barrel of crude oil in 2023.

“Shell’s Upstream business continues to set new benchmarks in performance through near-field opportunities like Bonga North, leveraging technical expertise, strong partnerships, and a model built on simplification and replication,” the company stated.