Shell PLC on Monday announced an investment in Bonga North, a deep-water project off the coast of Nigeria.
The London-based oil and gas exploration company said Bonga North will be a subsea tie-back to the Shell-operated Bonga floating production storage and offloading facility which Shell operates with a 55% interest.
The 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, Shell said.
The investment will be made by Shell subsidiary, Shell Nigeria Exploration and Production Co Ltd.
SNEP operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd, Nigerian Agip Exploration Ltd, and TotalEnergies Exploration and Production Nigeria Ltd, on behalf of the Nigerian National Petroleum Co Ltd.
Shell said 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 and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated 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 Zoe Yujnovich, Shell‘s Integrated Gas and Upstream director.
Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade, the firm added.
Shares in Shell were 0.3% lower at 2,491.50 pence each in London on Monday morning.
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