Shell Nigeria to Invest $10 Billion in Bonga North Deep-Water Project, Targets 110,000 Barrels Daily

By Ayomiposi Akinade

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has approved a $10 billion investment for the Bonga North deep-water project, aimed at boosting oil production off the Nigerian coast.

The project, which involves a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, is set to significantly enhance production. Shell holds a 55% interest in the Bonga FPSO.

Key aspects of the project include drilling and completing 16 wells, comprising eight production wells and eight water injection wells. Additionally, upgrades will be made to the existing Bonga Main FPSO, and new subsea hardware will be installed to connect back to the facility.

With an estimated recoverable resource of over 300 million barrels of oil equivalent (boe), the Bonga North project is projected to achieve peak production of 110,000 barrels of oil per day by the end of the decade.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the importance of the project, stating:
“This is a strategic investment that will support stable liquids production from our Upstream portfolio. The Bonga North development will solidify Shell’s leadership in Integrated Gas and Upstream operations while driving cash flow well into the future.”

SNEPCo operates the Bonga field in collaboration with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), under the Nigerian National Petroleum Company Limited (NNPC).

Located in Oil Mining Lease (OML) 118 at water depths exceeding 1,000 meters, the Bonga FPSO began production in 2005 with a daily capacity of 225,000 barrels of oil. In 2023, it celebrated producing its one-billionth barrel of crude oil.

The Bonga North initiative is expected to generate returns exceeding Shell’s upstream business benchmarks, underscoring its financial viability. Shell has leveraged its technical expertise, robust partnerships, and streamlined operational models to make projects like Bonga North a success.

SNEPCo remains committed to driving sustainability and innovation in Nigeria’s energy sector, further strengthening Shell’s operational legacy in the region.

Source: Sahara Reporters