Shell Nigeria Announces $10billion Investment For Bonga North Deep-Water Project, Targets 110,000 Barrels Daily Production
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.
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has 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.
In addition, there will be modifications to the existing Bonga Main FPSO, alongside the installation of new subsea hardware that will be connected back to the FPSO.
The initiative is expected to sustain oil and gas production at the Bonga facility, which has been a cornerstone of Shell’s operations in Nigeria.
With an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe), the project is anticipated to reach a peak production of 110,000 barrels of oil per day.
The first oil is expected to be produced 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.
She further explained that the Bonga North development will play a crucial role in ensuring Shell’s continued leadership in the Integrated Gas and Upstream business, driving cash generation into the next decade.
SNEPCo (55%) operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%) on behalf of the Nigerian National Petroleum Company Limited (NNPC).
Located in Oil Mining Lease (OML) 118 at water depths exceeding 1,000 meters, the Bonga facility commenced production in 2005, with a capacity of 225,000 barrels of oil per day. In 2023, it reached a milestone by producing its one-billionth barrel of crude oil.
The Bonga North development holds estimated recoverable resources classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System. These figures represent the total gross values for the project.
The significant investment in Bonga North is expected to generate an internal rate of return (IRR) exceeding Shell’s Upstream business hurdle rate.
Shell has consistently set new benchmarks in performance through near-field projects like Bonga North, which benefit from the company’s technical expertise, strong partnerships, and simplified operating model.
Shell’s commitment to its projects in Nigeria remains strong, with SNEPCo leading the charge on initiatives like Bonga North, while ensuring continued sustainability in the energy sector.
