Shell Nigeria Exploration and Production Company Limited (SNEPCo) has reached a final investment decision (FID) on the Bonga North deep-water project, located off Nigeria’s coast. The announcement was made through a statement released by Shell’s headquarters in London.
The project involves a subsea tie-back to the Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% stake. It includes the drilling and completion of 16 wells, modifications to the existing FPSO, and the installation of new subsea infrastructure. This initiative is set to sustain oil and gas production at the Bonga facility.
With recoverable resources estimated at over 300 million barrels of oil equivalent (boe), Bonga North is projected to achieve peak production of 110,000 barrels of oil per day. First oil production is expected before the end of the decade.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described the project as a critical investment for maintaining stable production levels in Shell’s upstream portfolio. “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” she stated, emphasizing the project’s role in Shell’s cash generation strategy.
President Bola Tinubu commended Shell and its partners for their decision, celebrating it as Nigeria’s first deep-water oil venture in over a decade. In a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, the President attributed the development to the administration’s policies aimed at attracting investments to the oil and gas sector.
“The Renewed Hope Agenda is focused on transforming the Nigerian economy and delivering prosperity to our people through targeted investments. Shell and its partners’ commitment to Bonga North is a testament to the success of these reforms. We will continue to provide the necessary support to realize Nigeria’s energy potential,” President Tinubu remarked.