In a significant move to boost Nigeria's oil production, Shell Nigeria Exploration and Production Company Limited (SNEPCo) has announced a final investment decision (FID) on the Bonga North project, according to Daily Trust. This deep-water project, located off the coast of Nigeria, is expected to sustain oil and gas production at the Bonga facility.
According to SNEPCo, the Bonga North project involves drilling, completing, and starting up 16 wells, comprising eight production and eight water injection wells. The project also includes modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The Bonga North project is estimated to have a recoverable resource volume of over 300 million barrels of oil equivalent (boe). It is expected to reach a peak production of 110,000 barrels of oil per day, with first oil anticipated by the end of the decade.
"This investment decision demonstrates our commitment to Nigeria and our confidence in the country's oil and gas industry," said Zoë Yujnovich, Shell's Integrated Gas and Upstream Director. "The Bonga North project will help ensure that our leading Integrated Gas and Upstream business continues to drive cash generation into the next decade."
The Bonga field, located in OML 118, is operated by SNEPCo in partnership with Esso Exploration and Production Nigeria Ltd., Nigerian Agip Exploration Ltd., and TotalEnergies Exploration and Production Nigeria Ltd., on behalf of the Nigerian National Petroleum Company Limited (NNPC).
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.
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