Shell said on Monday its Nigerian subsidiary has announced a final investment decision on Bonga North, a deep-water project off the coast of Nigeria.
The project, which will help maintain oil and gas production at Bonga, will be connected to Shell's floating production storage and offloading (FPSO) facility, where the oil major holds a 55 per cent stake.
SNEPCo (55 per cent) operates the Bonga field in partnership with Esso Exploration and Production Nigeria (20 per cent), Nigerian Agip Exploration (12.5 per cent), and TotalEnergies Exploration and Production Nigeria (12.5 per cent), on behalf of the Nigerian National Petroleum Company (NNPC).
Bonga is a deep-water development located in OML 118, 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. The project produced its one-billionth barrel of crude oil in 2023.
Shell said Bonga North has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach peak production of 110,000 barrels of oil per day (boepd), with first oil expected by the end of the decade.
(Reporting by Arunima Kumar in Bengaluru; Editing by Abinaya Vijayaraghavan)