Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a groundbreaking $10 billion investment in the Bonga North deep-water project off Nigeria’s coast.
This initiative aims to strengthen Nigeria’s oil production capabilities and sustain operations at the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility.
Key Milestones in the Bonga North Development
The Bonga North project includes drilling and completing 16 wells, split evenly between production and water injection wells. Additionally, the project will feature upgrades to the existing Bonga Main FPSO facility and the installation of new subsea hardware linked to the FPSO. 
“This is another significant investment, which will help us maintain stable liquids production from our advantaged Upstream portfolio,” stated Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
She noted that this development underpins Shell’s leadership in upstream operations while driving sustained cash generation into the next decade.
Projected Oil Production and Economic Impact
The Bonga North project is expected to deliver over 300 million barrels of recoverable oil equivalent (boe), achieving peak production of 110,000 barrels per day by the end of the decade. This addition ensures the Bonga facility, which began production in 2005, continues its legacy as a cornerstone of Nigeria’s oil industry.
In 2023, the Bonga facility celebrated producing its one-billionth barrel of crude oil, a testament to its pivotal role in Shell’s operations in the region.
Strong Partnerships Driving Success
SNEPCo holds a 55% operating interest in the Bonga field in collaboration with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), under the Nigerian National Petroleum Company Limited (NNPC).
The Bonga field is situated in Oil Mining Lease (OML) 118 at depths exceeding 1,000 meters. Through partnerships and technical expertise, Shell continues to push boundaries, with Bonga North setting a benchmark for near-field project performance.
Sustainability and Long-Term Goals
This $10 billion investment showcases Shell’s commitment to sustaining Nigeria’s energy sector while meeting global energy demands. Shell’s strategy focuses on leveraging technical innovation, simplified operating models, and robust partnerships to deliver superior returns.
Bonga North is projected to generate an internal rate of return (IRR) surpassing Shell’s upstream business hurdle rate. This development underscores Shell’s resolve to remain a leader in sustainable oil production, ensuring the long-term viability of Nigeria’s oil sector.
A Bold Future for Nigeria’s Oil Industry
Shell’s announcement of the Bonga North project highlights a new era for Nigeria’s oil industry, combining substantial investments with cutting-edge technology to secure the country’s position as a global energy leader.
As construction begins and first oil production approaches, the project stands as a testament to Shell’s unwavering commitment to Nigeria’s economic growth and energy sustainability.
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