The deep-water project Bonga North off the coast of Nigeria has a final investment decision (FID), according to Shell Nigeria Exploration and Production Company Limited (SNEPCo), a division of Shell Plc.
The project’s cost was not included in Shell’s Monday statement, which was released from London.
Bonga North will be a submerged tie-back to the Bonga Floating Production Storage and Offloading (FPSO) facility, which is owned and operated by Shell to the tune of 55%.
As stated, the Bonga North project entails the installation of additional subsea hardware connected to the FPSO, upgrades to the current Bonga Main FPSO, and the drilling, completion, and startup of 16 wells (8 production and 8 water injection wells).
The Bonga plant will continue to produce gas and oil as a result of the project. Bonga North is expected to produce 110,000 barrels of oil per day at its peak, with the first oil expected by the end of the decade. The estimated recoverable resource volume is presently above 300 million barrels of oil equivalent (boe).
The release said, “This is another major investment that will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Integrated Gas and Upstream Director at Shell.
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Shell’s top-performing Integrated Gas and Upstream division will continue to generate cash for the ensuing ten years with the support of Bonga North.
SNEPCo, which holds a 55 percent stake, manages the Bonga field on behalf of the Nigerian National Petroleum Company Limited (NNPC) in collaboration with Esso Exploration and Production Nigeria Ltd. (20 percent), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%).
Located at OML 118, Bonga is a deep-water development with sea depths of more than 1,000 meters. In 2005, the Bonga FPSO started producing oil, with a daily production capacity of 225,000 barrels. 2023 marked the project’s one-billionth barrel of crude oil production.
An estimated 300 million barrels of oil equivalent (boe) of recoverable resource quantities are present in the Bonga North development. According to the Society of Petroleum Engineers’ Petroleum Resources Management System, these volumes are presently categorized as 2P (proven and probable).
The above-mentioned recoverable resources and predicted peak output represent 100% of total gross statistics, according to the International Oil Company (IOC).
It insisted that an internal rate of return (IRR) higher than the hurdle rate for Shell’s upstream division was anticipated from the investment in Bonga North.
Shell’s Upstream business is utilizing technical know-how, solid alliances, and a philosophy based on simplification and replication to continue setting new performance standards through near-field possibilities like Bonga North.
