SHERIDAN, WYOMING – Jan. 09, 2025 – Shell is reinforcing its commitment to Nigeria's energy sector with a major investment in the Bonga North deep-water project. This exciting development promises to boost oil production, support local communities, and drive economic growth in the region.
Expanding on Success: Bonga North Deep-water Project
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, recently announced a final investment decision (FID) on the Bonga North project, located off the coast of Nigeria. This subsea development will tie back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility, maximizing efficiency and minimizing environmental impact.
Project Details and Expectations
Bonga North involves an ambitious plan to drill and complete 16 new wells, including 8 production wells and 8 water injection wells. Modifications to the existing FPSO vessel and the installation of new subsea infrastructure will also be necessary to accommodate the increased production.
With an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe), Bonga North is expected to significantly boost oil production. It is projected to reach a peak production of 110,000 barrels of oil per day, contributing substantially to Nigeria's energy output. First oil from Bonga North is anticipated by the end of the decade.
Sustaining Production and Driving Economic Growth
Zoë Yujnovich, Shell's Integrated Gas and Upstream Director, emphasized the importance of this investment in maintaining stable liquids production from Shell's advantaged Upstream portfolio. Bonga North will play a crucial role in ensuring Shell's continued success in Nigeria and its contribution to the country's economic development.
A History of Success in Nigeria
Shell has a long and successful history of operating in Nigeria, with Bonga marking a significant milestone in its deep-water exploration and production endeavors. The original Bonga field, located in OML 118 at water depths over 1,000 meters, began production in 2005 with a capacity of 225,000 barrels of oil per day. The project celebrated a major achievement in 2023, producing its one-billionth barrel of crude oil.
Commitment to Nigeria
Shell's investment in Bonga North underscores its commitment to Nigeria's long-term energy future. The project is expected to generate substantial revenue for the country, create employment opportunities, and support local communities through various social investment programs.
Looking Ahead
Bonga North is a testament to Shell's ongoing commitment to innovation and sustainable development in Nigeria's energy sector. By leveraging its technical expertise, strong partnerships, and a streamlined operational model, Shell aims to continue setting new benchmarks in performance within its Upstream business. The Bonga North project underscores Shell's1 dedication to Nigeria and its continued focus on deep-water oil and gas production, contributing to both energy security and economic prosperity.