Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has made a final investment decision (FID) on the Bonga North deep-water project, located off Nigeria’s coast.
The Bonga North project will involve a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, in which Shell holds a 55% interest. The project entails drilling and completing 16 wells, comprising eight production and eight water injection wells. Additionally, modifications will be made to the existing Bonga Main FPSO, and new subsea hardware will be installed. The Bonga North project aims to sustain oil and gas production at the Bonga facility. With an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe), the project is expected to reach peak production of 110,000 barrels of oil per day 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,” said Zoë Yujnovich,
Shell’s Integrated Gas and Upstream Director.The Bonga North project will contribute significantly to Shell’s leading Integrated Gas and Upstream business, ensuring continued cash generation into the next decade. SNEPCo, with a 55% stake, 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%). The Nigerian National Petroleum Company Limited (NNPC) is the beneficiary of this partnership.Located in OML 118, the Bonga field is a deep-water development situated at water depths exceeding 1,000 meters. Production commenced at the Bonga FPSO in 2005, with an initial capacity of 225,000 barrels of oil per day. Notably, the project achieved a significant milestone in 2023, producing its one-billionth barrel of crude oil.
The Bonga North development boasts estimated recoverable resource volumes of over 300 million barrels of oil equivalent (boe), classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System. The investment in Bonga North is anticipated to yield an internal rate of return (IRR) surpassing the hurdle rate for Shell’s Upstream business. This project exemplifies Shell’s Upstream business strategy, which focuses on leveraging technical expertise, fostering strong partnerships, and implementing a model centered on simplification and replication to drive exceptional performance.
Source : https://www.shell.com/
