Petroleum Minister Reacts To Shell Company’s New Investment In Bonga North Deep Water
The minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri
December 16, 2024
News
The minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the remarks on Monday.
The Nigerian government has backed the Shell Petroleum Company’s decision to invest in the Bonga North Deep water project.
The government said the effort would also expectedly add 110,000 barrels to the crude oil daily production of the country.
The minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the remarks on Monday.
The Minister’s position was communicated in a statement by his Special adviser, Nneamaka Okafor.
The project, located off Nigeria’s coast, “is expected to sustain production at the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, with recoverable resources estimated at over 300 million barrels of oil equivalent (boe).” the statement read.
Senator Lokpobiri stated that the “announcement aligns with the federal government’s commitment to revamping Nigeria’s oil and gas sector through strategic reforms and investments.”
“This project is expected to add 110,000 barrels per day to Nigeria’s production capacity, creating significant economic value for the nation,” he said.
The government noted that Shell FID is one of several anticipated investments.
Lokpobiri reiterated the government’s commitment to providing the enabling environment for businesses to thrive.
“This is just one of many investments we are expecting. The federal government remains steadfast in addressing investor concerns, improving regulatory frameworks, and ensuring that the oil and gas sector continues to attract global players.”
“Our goal is to use such investments to drive economic growth, create jobs, and improve the standard of living for Nigerians,” the Minister added.
According to the statement, the Bonga North project will function as a subsea tie-back to the Shell-operated Bonga FPSO facility, where Shell holds a 55% interest.
“It represents a major step forward for Nigeria’s energy sector, marking a significant increase in production capacity and enhancing the country’s position as a global energy player.”
SaharaReporters earlier reported that Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, confirmed a final investment decision (FID) for its Bonga North deep-water project located off the coast of Nigeria.
This major investment is a subsea tie-back to the existing Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% interest.
The Bonga North project will involve the drilling, completion, and startup of 16 wells—eight production wells and eight water injection wells.
