Nigeria: Shell to Drill 14 New Wells in $5bn Nigeria's Bonga North Project

17 December 2024
Daily Trust (Abuja)
By Abdullateef Aliyu

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc., has announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

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 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 SNEPCo, the project will sustain oil and gas production at the Bonga facility.

Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.

Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day. The project produced its one-billionth barrel of crude oil in 2023.

"This is another significant investment, which will help us to maintain stable liquids production from our advantaged upstream portfolio," said Zoë Yujnovich, Shell's Integrated Gas and Upstream Director.

Bonga North will help ensure Shell's leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.

Daily Trust reports that SNEPCo (55%) operates the Bonga field in partnership with 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).

The estimated peak production and recoverable resources mentioned above are 100% total gross figures.

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.

Read the original article on Daily Trust.

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