Shell Nigeria Exploration and Production Company Limited, a subsidiary of Shell Plc., has made the final investment decision (FID) for Bonga North, a deep-water project located off Nigeria’s coast.
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.
SNEPCo (55%) leads the operation of the Bonga field in collaboration with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), under the mandate of the Nigerian National Petroleum Company Limited (NNPC).
The estimated peak production and recoverable resources represent 100% of the total gross figures.
Shell anticipates that the investment in Bonga North will deliver an internal rate of return (IRR) surpassing the hurdle rate for its upstream business.
