
London headquartered oil and gas company and leading lubricant maker, Shell, revealed recently that its subsidiary in Nigeria has now approved a deep-water oil project. The site is called Bonga North and is situated off the Nigerian coast.
The announcement arrived amidst news of the last investment decision regarding the West African development. The subsea project will tie-back to the Bonga Floating Production Storage and Offloading facility run by Shell.
Shell has a controlling interest in the floating facility of 55 per cent. According to a representative of the British multinational, the project will now sustain both gas and oil production ongoing at the Bonga facility.
At present, Bonga North has an approximate recoverable natural resource volume of over 300 million barrels of oil equivalent. Statistics indicate it will reach an optimal production rate of 110,000 oil barrels a day, with initial oil expected by around 2030.
Director for Integrated Gas and Upstream at Shell, Zoë Yujnovich, commented:
“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio.”
While consolidating its offshore efforts with the Bonga North project, Shell is now aiming to sell off its onshore assets associated with oil production efforts in the Niger Delta as the biggest African OPEC producer. In early 2024, a spokesperson for Shell confirmed that the supermajor had managed to reach an agreement that would see it sell its onshore Nigerian subsidiary to a consortium of five firms – called Renaissance – for $1.3 billion.