Shell Takes FID at Bonga North Offshore Nigeria

Estimated read time 2 min read

(Energy Analytics Institute, 16.Dec.2024) — Shell plc subsidiary Shell Nigeria Exploration and Production Company Limited (SNEPCo) announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria. Peak gross production of 110,000 barrels per day of oil (b/d) is expected by the end of the decade.

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 UK-based energy giant announced 16 Dec. 2024 in an official statement.

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

The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO, according to Shell. And, the project aims to  sustain oil and gas production at the Bonga facility. 

Bonga North helps to ensure Shell maintains a leading integrated gas and upstream business that continues to drive cash generation into the next decade.

Partners in Bongo North include SNEPCo (55% WI, operator), Esso Exploration and Production Nigeria Ltd. (20% WI), Nigerian Agip Exploration Ltd. (12.5% WI), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5% WI), on behalf of the Nigerian National Petroleum Company Limited (NNPC).

Bonga North details

Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000m. Production at the Bonga FPSO commenced in 2005, with a capacity of 225,000 b/d. The project produced its one-billionth barrel of crude oil in 2023.

The Bonga North development holds gross estimated recoverable resource volumes of more than 300 million barrels of oil equivalent (MMboe), which are currently classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.

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. Said business segment 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, according to Shell.

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Energy Analytics Institute (EAI), formerly LatinPetroleum.com, is a Houston-established private organization with a satellite presence in Calgary, Mexico City and Venezuela where it operates under Editores LatinPetroleum SA. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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