Shell's Investment in Bonga North Project

Shell (LON:SHEL) Nigeria Exploration and Production Company Limited (SNEPCo), part of Shell plc, has made a significant move forward in the Bonga North deep-water project, located off the Nigerian coast. The company has confirmed its final investment decision for this project, which will be developed as a subsea tie-back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% operating interest.

Development Plan

The development plan for Bonga North involves:
– Drilling and commissioning of 16 wells (8 production wells and 8 water injection wells).
– Modifications to the existing Bonga Main FPSO.
– Installation of new subsea infrastructure connecting back to the FPSO.

Expected Contributions

Bonga North is anticipated to significantly sustain oil and gas production levels at the Bonga facility. With an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent, it is projected to reach a peak production rate of 110,000 barrels of oil per day, with oil production expected to commence by the end of the decade.

Strategic Importance

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the strategic nature of the investment, stating, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio.” The Bonga North investment will enhance Shell’s Integrated Gas and Upstream business, ensuring strong cash flow generation into the next decade.

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