Shell Invests in Bonga North Deep-Water Project in Nigeria
Deal News | Dec 17, 2024 | Phoenicia Group Libya LLC
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has confirmed a final investment decision on the Bonga North project, a significant deep-water development off the coast of Nigeria. Bonga North will be linked to the existing Bonga FPSO facility, which Shell operates with a 55% interest. The project's investment involves the drilling and completion of 16 wells, modifications to the existing FPSO, and installation of new subsea hardware. Shell anticipates that Bonga North will sustain oil and gas production at its Bonga FPSO facility, with an estimated 300 million barrels of oil equivalent (boe) recoverable and a peak production target of 110,000 barrels of oil per day by the end of the decade. Shell underscores this as a strategic investment aimed at maintaining stable production in its upstream portfolio. Supported by partners including Esso, Nigerian Agip, and TotalEnergies, the project reinforces Shell's upstream and integrated gas business. Bonga North's resources have been classified as 2P under the Society of Petroleum Engineers Petroleum Resources Management System.
Sectors
- Oil and Gas Exploration and Production
- Energy Infrastructure
Geography
- Nigeria – The Bonga North deep-water project is located off the coast of Nigeria, making it a key geographical focus in the article as well as a strategic location for Shell's upstream operations.
- United Kingdom – Shell plc, the parent company of SNEPCo, is headquartered in the UK, indicating the project's involvement with a British multinational corporation.
Industry
- Oil and Gas Exploration and Production – The article discusses significant developments in the exploration and production of oil and gas, specifically related to Shell's investment in the Bonga North project.
- Energy Infrastructure – The article mentions significant infrastructure upgrades involving subsea wells and FPSO facilities, which are crucial in the energy sector.
Financials
- 300 million barrels of oil equivalent – The estimated recoverable resource volume for the Bonga North project.
- 110,000 barrels of oil per day – The expected peak production rate of the Bonga North project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Shell Nigeria Exploration and Production Company Limited (SNEPCo) | Operator | Company | A subsidiary of Shell plc, responsible for the operation of the Bonga North deep-water project. |
| Shell plc | Parent Company | Company | The global energy and petrochemical company which owns SNEPCo. |
| Esso Exploration and Production Nigeria Ltd. | Partner | Company | A partner in the operation of the Bonga field, holding 20% interest. |
| Nigerian Agip Exploration Ltd. | Partner | Company | A partner in the operation of the Bonga field, holding 12.5% interest. |
| TotalEnergies Exploration and Production Nigeria Ltd. | Partner | Company | A partner in the operation of the Bonga field, holding 12.5% interest. |
| Zoë Yujnovich | Shell's Integrated Gas and Upstream Director | Person | An executive at Shell who commented on the importance of the Bonga North investment. |
| TechnipFMC | Subsea Contractor | Company | The company awarded a contract for subsea infrastructure for the Bonga North project. |
| Nigerian National Petroleum Company Limited (NNPC) | Government | Company | Represents the Nigerian government's interest in the Bonga field development. |