Shell Nigeria Exploration and Production Co. Ltd. (SNEPCo), a Shell plc subsidiary, has taken final investment decision (FID) to develop Bonga North, a deep-water project off the coast of Nigeria, to sustain oil and gas production at the Shell-operated Bonga floating production storage and offloading (FPSO) vessel.
Bonga North currently has an estimated recoverable resource volume of more than 300 MMboe and is expected to reach a peak production of 110,000 b/d of oil, with first oil anticipated by the end of the decade, the company said in a release Dec. 16.
Bonga North will be a subsea tie-back to the 225,000 b/d Bonga FPSO.
Bonga field, in OML 118, began producing oil and gas in 2005 and was Nigeria’s first deepwater development in depths of more than 1,000 m (OGJ Online, Dec. 1, 2005; Aug. 6, 2014).
SNEPCo operated Bonga field with 55% interest. Partners are 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 Co. Ltd. (NNPC).
The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The project will sustain oil and gas production at the Bonga facility. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day. The project produced its one-billionth barrel of crude oil in 2023.
The Bonga North development holds estimated recoverable resource volumes 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 gross figures.
The investment in Bonga North is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s Upstream business.
