Shell invests in Bonga North deep-water project

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

In a post on its website, the company said Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.

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.

It said the project will sustain oil and gas production at the Bonga facility.

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

These volumes are currently classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.

SNEPCo controls a 55% stake in the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. which controls 20%.

Nigerian Agip Exploration Ltd. controls 12.5%, and TotalEnergies Exploration and Production Nigeria Ltd. controls 12.5%, on behalf of the Nigerian National Petroleum Company Limited (NNPC).

Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters.

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

Commending Shell for the investment, President Bola Tinubu said it underscores the transformative impact of his policies and reforms in attracting investments in the oil and gas sector.

In a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu promised his administration’s support to ensure their success and the realisation of Nigeria’s energy potential.

He concluded by reiterating his administration’s stedfastness in positioning Nigeria as a global leader in energy innovation and investment.