Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has taken a significant step in reinforcing its position as a key player in the global oil and gas industry by announcing the Final Investment Decision (FID) on its Bonga North project.

This deep-water venture, situated off the coast of Nigeria, is set to become a transformative addition to Shell’s portfolio, bolstering the company’s upstream operations and ensuring stable production in the years to come.

The Bonga North project represents a critical extension of the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility. The project will be a subsea tie-back to the existing Bonga FPSO, which is operated by Shell with a 55% stake.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described the development as “a significant investment aimed at maintaining stable liquids production from Shell’s advantaged Upstream portfolio.”

The scope of the project is ambitious, involving the drilling, completion, and startup of 16 wells—comprising eight production wells and eight water injection wells.

Additionally, the initiative will require extensive modifications to the existing Bonga Main FPSO infrastructure, along with the installation of new subsea hardware to support the tie-back.

Once operational, Bonga North is expected to sustain oil and gas production from the Bonga facility, highlighting Shell’s long-term commitment to Nigerian oil and gas development.

Bonga North has an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe). At its peak, the project is projected to produce approximately 110,000 barrels of oil per day.

Shell has set an ambitious timeline for the project, with first oil anticipated by the end of the decade. This new development will not only enhance the productivity of the Bonga FPSO but will also contribute significantly to Shell’s overall upstream output.

Strategic Importance

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director

The FID on Bonga North underscores Shell’s strategic focus on deep-water exploration and production, areas where the company has historically demonstrated technical expertise and operational efficiency.

By leveraging its existing infrastructure at the Bonga FPSO, Shell aims to maximize value while minimizing environmental impact and project costs.

The project’s subsea tie-back design reduces the need for new surface infrastructure, aligning with Shell’s sustainability and cost-efficiency goals.

Zoë Yujnovich emphasized the broader significance of the project for Shell’s global portfolio, stating that it will ensure the company’s Integrated Gas and Upstream business continues to “drive cash generation into the next decade.”

This aligns with Shell’s strategy to prioritize high-value, low-cost projects that deliver consistent returns while adhering to its commitment to sustainability.

Shell highlighted the environmental benefits of the Bonga North project’s design. By utilizing a subsea tie-back to the existing Bonga FPSO, the project minimizes the need for additional surface infrastructure, reducing its environmental footprint.

“Shell is committed to adhering to global best practices in environmental management throughout the project’s lifecycle.
“This includes implementing measures to mitigate potential environmental impacts, such as emissions reduction strategies, robust spill prevention systems, and careful monitoring of marine ecosystems.”
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director

The Final Investment Decision on Bonga North marks a pivotal moment for Shell and Nigeria’s oil and gas sector.

As one of Shell’s most significant deep-water projects, Bonga North is expected to deliver substantial benefits, including increased production, economic growth, and job creation.

With an estimated recoverable resource volume of over 300 million boe and a peak production capacity of 110,000 barrels per day, the project underscores Shell’s confidence in Nigeria’s energy potential.

As first oil production draws closer, the project will undoubtedly remain a focal point for the Nigerian energy industry and a benchmark for future deep-water developments globally.