Shell (LON:SHEL) Nigeria Exploration and Production Company Limited (SNEPCo), part of Shell plc, has taken a decisive step forward in the Bonga North deep-water project situated off the Nigerian coast. The company has confirmed its final investment decision for the project, which will be developed as a subsea tie-back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% operating interest.
The development plan for Bonga North includes the drilling and commissioning of 16 wells, comprising eight production wells and eight water injection wells. Additionally, the project will involve modifications to the current Bonga Main FPSO and the installation of new subsea infrastructure that will connect back to the FPSO.
The Bonga North field is expected to significantly contribute to sustaining oil and gas production levels at the Bonga facility. With an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent, Bonga North is projected to attain a peak production rate of 110,000 barrels of oil per day. The commencement of oil production from this field is expected by the end of the decade.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, expressed the strategic nature of the investment, stating, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio.” The investment in Bonga North is set to bolster Shell’s Integrated Gas and Upstream business, ensuring robust cash flow generation into the next decade.
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