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 off Nigeria’s coast.
It is expected that Bonga North will connect to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55 per cent share.
The project will involve drilling 16 wells (eight production and eight water injection), modifying the existing Bonga Main FPSO, and installing new subsea equipment.
Bonga North is expected to sustain oil and gas production at the facility, with estimated recoverable resources exceeding 300 million barrels of oil equivalent and a peak production target of 110,000 barrels per day by the decade’s end.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said this significant investment will help maintain stable liquid production in their Upstream portfolio.
SNEPCo operates Bonga in partnership with Esso Exploration and Production Nigeria Ltd. (20 per cent), Nigerian Agip Exploration Ltd. (12.5 per cent), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5 per cent) on behalf of NNPC.
Bonga is located at depths over 1,000 meters, and production began in 2005 with a capacity of 225,000 barrels per day. It produced its one-billionth barrel of crude oil in 2023. The Bonga North project holds over 300 million barrels of oil equivalent, classified as 2P (proven and probable).
Shell aims for the investment to yield an internal rate of return (IRR) above the threshold for its Upstream business, with continued focus on performance and collaboration through projects like Bonga North.
