Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has made a final investment decision (FID) for the Bonga North deep-water project, located off the coast of Nigeria. This significant development, announced in a company statement on Monday, marks a major step in sustaining oil and gas production at the Bonga facility, which has been a key asset in Shell’s Nigerian portfolio.
The Bonga North project is expected to unlock an estimated recoverable resource of over 300 million barrels of oil equivalent (boe) and reach a peak production rate of 110,000 barrels of oil per day. The first oil is projected to be produced by the end of the decade, signaling the long-term potential of this venture in maintaining Shell’s energy output.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the strategic importance of the project. This is another significant investment that will help us maintain stable liquids production from our advantaged Upstream portfolio, Yujnovich said. The Bonga North development is expected to contribute to Shell’s ability to generate substantial cash flow in the coming years, ensuring the ongoing strength of its Integrated Gas and Upstream business.
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Bonga North will be connected to the existing Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, with Shell holding a 55% interest in the operation. The project involves the installation of new subsea hardware, modifications to the Bonga Main FPSO, and the drilling of 16 wells eight production wells and eight water injection wells. These developments are designed to optimize the production capacity of the facility and ensure efficient extraction of resources from the field.
With this investment, Shell aims to further solidify its position as a leading player in the global energy market, particularly within its Upstream sector. The Bonga North project represents an important milestone in the company’s ongoing efforts to enhance oil and gas production in Nigeria, while contributing to long-term energy security in the region.
