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Shell Nigeria Exploration and Production Company Limited (SNEPCO), a subsidiary of Shell Plc, has announced a Final Investment Decision (FID) on Bonga North, a deep water project off the coast of Nigeria.
Bonga North will be a subsea tieback to the Shell-operated Bonga floating production storage and offloading (FPSO) facility which Shell operates with a 55% interest.
The Director of Shell’s integrated Gas and Upstream programme, Zoe Yujnovich expressed joy that the big dream has come to a landmark turning point. “This is another significant investment which will help us to maintain stable liquids production from our advantaged upstream portfolio. Bonga North will help ensure Shell’s leading integrated gas and upstream business continues to drive cash generation into the next decade.”
The Bonga North Deep Water Project involves drilling, completing and starting up 16 wells (8 production and 8 water injection wells), which are modifications to the existing Bonga main FPSO and the installation of new subsea hardware tied back to the FPSO.
As at now, the Bonga North has an extended recoverable resource volume of more than 300 million barrels of oil equivalent (boe). These volumes are currently classified as 2P (proven and probable) under the society of Petroleum Engineers Petroleum resources management system. The estimated peak production and recoverable resources mentioned above are 100% total figures.
Bonga is a deep water development located in OML118, at water depths exceeding 1,000 metres. Production at the Bonga (FPSO) began in 2005 with a capacity to produce 225,000 barrels of oil per day.
For Shell and its partners who are investing billions of dollars into this obviously gigantic project, Bonga North is expected to generate an internal rate of returning revenue (IRR) in excess of the rate for Shell’s upstream business.
Early in 2024, the chairman of Shell companies in Nigeria (SCIN), Mr. Osagie Osunbor, led his management team to meet with the team of the Nigerian Content Development and Monitoring Board (NCDMB) where he used the opportunity to solicit for the support of the NCDMB in the Bonga North Deep water project. 
Mr Osunbor also used the occasion to make certain clarifications that the planned divestment by Shell Petroleum Development Company of Nigeria would not affect any contract entered into by the company.
By Tunde Olaore
The Director of Shell’s integrated Gas and Upstream programme, Zoe Yujnovich expressed joy that the big dream has come to a landmark turning point. “This is another significant investment which will help us to maintain stable liquids production from our advantaged upstream portfolio. Bonga North will help ensure Shell’s leading integrated gas and upstream business continues to drive cash generation into the next decade.”
The Bonga North Deep Water Project involves drilling, completing and starting up 16 wells (8 production and 8 water injection wells), which are modifications to the existing Bonga main FPSO and the installation of new subsea hardware tied back to the FPSO.
As at now, the Bonga North has an extended recoverable resource volume of more than 300 million barrels of oil equivalent (boe). These volumes are currently classified as 2P (proven and probable) under the society of Petroleum Engineers Petroleum resources management system. The estimated peak production and recoverable resources mentioned above are 100% total figures.
Bonga is a deep water development located in OML118, at water depths exceeding 1,000 metres. Production at the Bonga (FPSO) began in 2005 with a capacity to produce 225,000 barrels of oil per day.
For Shell and its partners who are investing billions of dollars into this obviously gigantic project, Bonga North is expected to generate an internal rate of returning revenue (IRR) in excess of the rate for Shell’s upstream business.
Early in 2024, the chairman of Shell companies in Nigeria (SCIN), Mr. Osagie Osunbor, led his management team to meet with the team of the Nigerian Content Development and Monitoring Board (NCDMB) where he used the opportunity to solicit for the support of the NCDMB in the Bonga North Deep water project.
Mr Osunbor also used the occasion to make certain clarifications that the planned divestment by Shell Petroleum Development Company of Nigeria would not affect any contract entered into by the company.
By Tunde Olaore
