Shell Nigeria Exploration and Production Co. Ltd. (SNEPCo) has reached a final investment decision (FID) on the Bonga North development. The company said in a media release this deepwater project off the coast of Nigeria will be a subsea tie-back to the Shell-operated Bonga floating storage and offloading (FPSO) facility.
SNEPCo operates the project with a 55 percent stake. Esso Exploration and Production Nigeria Ltd. holds 20 percent, while Nigerian Agip Exploration Ltd. and TotalEnergies Exploration and Production Nigeria Ltd. each hold 12.5 percent. Nigerian National Petroleum Co. Ltd. (NNPC) is also a partner in the venture.
The Bonga North project involves 16 wells (eight production and eight water injection wells). The existing Bonga Main FPSO will be modified. New subsea hardware will be tied back to the FPSO, Shell said.
The project aims to maintain oil and gas output at the Bonga facility. Bonga North is expected to have a recoverable resource volume exceeding 300 million barrels of oil equivalent (boe) and is projected to peak at 110,000 barrels of oil per day, with the first oil expected by the end of 2030.
“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.
Bonga, a deepwater field located in OML 118 and nestled at depths exceeding 1,000 meters (3280 feet), has been pumping crude since 2005, churning out 225,000 barrels per day. In 2023, Bonga celebrated its one-billionth barrel of oil production, proving that this deep-sea giant is far from running dry, Shell noted.
The investment in Bonga North is expected to generate an internal rate of return above the hurdle rate for Shell’s upstream business, it said.
Shell said its upstream sector is setting new performance standards through near-field opportunities like Bonga North by leveraging technical expertise and strong partnerships with a focus on simplification and replication.
Source:by Paul Anderson from Rigzone Staff