Shell invests in deep-water project in Nigeria
Located at Bonga North
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell, has announced a significant final investment decision (FID) on the Bonga North deep-water project off the coast of Nigeria. The strategic initiative aims to enhance production capabilities at the existing Bonga Floating Production Storage and Offloading (FPSO) facility, in which Shell holds a 55% interest.
The Bonga North project involves drilling, completing, and commencing operations for 16 wells, comprising eight production wells and eight water injection wells. Additionally, it includes modifications to the current Bonga Main FPSO and the installation of new subsea hardware, ensuring an efficient tie-back to the FPSO.
The project is poised to sustain oil and gas production at the Bonga facility, which has an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe). It is anticipated to reach peak production of 110,000 barrels of oil per day, with the first oil expected by the decade’s end.
“This is another significant investment, which will help us maintain stable liquids production from our advantaged Upstream portfolio,” stated Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. The Bonga North development ensures that Shell’s leading Integrated Gas and Upstream business generates cash flow well into the next decade.
SNEPCo operates the Bonga field in collaboration with partners, including Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
Bonga is a deep-water development located in Oil Mining Lease (OML) 118, at depths exceeding 1,000 metres. The Bonga FPSO commenced production in 2005, boasting a capacity of 225,000 barrels of oil per day, and celebrated its one-billionth barrel of crude oil production in 2023.
Under the Society of Petroleum Engineers’ Petroleum Resources Management System, Bonga North’s recoverable resource volumes are classified as 2P (proven and probable). The investment is expected to yield an internal rate of return (IRR) surpassing the hurdle rate for Shell’s upstream business.
Hero image: Bonga floating, production, storage and offloading facility in deep water, Gulf of Guinea, Nigeria, 2015. Credit: Giles Barnard
