Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a final investment decision (FID) for the Bonga North deep-water project, located off the coast of Nigeria.
The project is set to bolster oil and gas production at the Bonga facility, according to a company statement released on Monday.
Bonga North boasts an estimated recoverable resource of over 300 million barrels of oil equivalent (boe) and is expected to achieve a peak production of 110,000 barrels of oil per day.
The first oil output is anticipated by the end of this decade, marking a significant milestone in Shell’s efforts to sustain its upstream operations in Nigeria.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, highlighted the strategic importance of the project, stating, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio.”
The Bonga North initiative will serve as a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% operating interest.
The project entails the drilling, completion, and startup of 16 wells—comprising eight production and eight water injection wells.
Additionally, modifications to the existing Bonga Main FPSO and the installation of new subsea infrastructure will be carried out to ensure seamless integration.
Shell emphasized that the Bonga North development aligns with its strategy to maintain its leadership in the Integrated Gas and Upstream business, driving significant cash flow into the next decade.
The Bonga facility remains a cornerstone of Nigeria’s deep-water oil production, and the Bonga North project underscores Shell’s commitment to contributing to the country’s energy sector while sustaining its global operations.
This development comes amidst Shell’s broader push to enhance its upstream capabilities and maintain energy security globally.