Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a $5 billion final investment decision (FID) for the Bonga North deep-water project off the coast of Nigeria.
The project is expected to sustain oil and gas production at the Bonga facility, according to a statement released on Monday.
Bonga North is estimated to have recoverable resources of over 300 million barrels of oil equivalent (boe) and is projected to reach a peak production of 110,000 barrels of oil per day. The company anticipates the first oil production by the end of the decade.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented, “This is another significant investment that will help us maintain stable liquids production from our advantaged Upstream portfolio.”
The company further stated that Bonga North will play a crucial role in ensuring the continued success of its Integrated Gas and Upstream business, generating cash flow into the next decade.
Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, in which Shell holds a 55% interest. The project involves drilling and completing 16 wells (eight production wells and eight water injection wells), making modifications to the existing Bonga Main FPSO, and installing new subsea hardware connected to the FPSO.
