Shell Nigeria Exploration and Production Company Limited (SNEPCo) has announced a final investment decision (FID) on the Bonga North deep-water project, located off the coast of Nigeria.
The project, which involves drilling, completing, and starting up 16 wells; modifications to the existing Bonga Main FPSO; and the installation of new subsea hardware, is expected to sustain oil and gas production at the Bonga facility.
Persecondnews reports that the Bonga North project has an estimated recoverable resource volume of over 300 million barrels of oil equivalent (boe) and is expected to reach a peak production of 110,000 barrels of oil per day, with first oil anticipated by the end of the decade.
“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.
The Bonga North development is a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, which Shell operates with a 55% interest.
The project is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s upstream business.
The investment in Bonga North is a testament to Shell’s commitment to Nigeria’s energy sector and its confidence in the country’s potential for growth and development.
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