Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has reached a final investment decision (FID) for the Bonga North deep-water project off Nigeria’s coast.
This subsea tie-back will connect to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% interest.
The Bonga North project encompasses drilling and starting up 16 wells—split equally between production and water injection wells—alongside upgrades to the Bonga Main FPSO and new subsea hardware installations. The initiative aims to sustain production at the Bonga facility, with recoverable resources estimated at over 300 million barrels of oil equivalent (boe). Peak production is expected to reach 110,000 barrels of oil per day, with first oil anticipated by the decade's end.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described the project as a significant investment contributing to stable liquids production and reinforcing Shell’s Upstream portfolio. Bonga North’s development aligns with Shell’s strategy to drive cash generation through its Integrated Gas and Upstream business into the next decade.
SNEPCo operates Bonga North in partnership with 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 Company Limited (NNPC). Situated in OML 118, Bonga is a deep-water field with production beginning in 2005. It achieved its one-billionth barrel milestone in 2023, and the FPSO has a production capacity of 225,000 barrels of oil daily.
Bonga North’s recoverable volumes exceed 300 million boe, classified as proven and probable (2P) under the Society of Petroleum Engineers’ standards. The project is also expected to surpass Shell’s hurdle rate for its Upstream business, leveraging near-field opportunities, technical expertise, and simplified, replicable operational models.
