Market
Will Bonga North exceed Shell's Upstream hurdle rate by 2030?
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Resolution / Starting Odds
Yes • 50%
No • 50%
Financial reports from Shell or industry financial analysis
Story
Shell Commits $10 Billion to Bonga North, Targets 110,000 Barrels Daily Production
Dec 16, 2024, 01:46 PM
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a $10 billion investment in the Bonga North deep-water project off the coast of Nigeria. This project, marking Nigeria's first deep-water oil project in over a decade, involves drilling, completing, and starting up 16 wells—eight production wells and eight water injection wells, with modifications to the existing Bonga Main Floating Production Storage and Offloading (FPSO) facility. Shell holds a 55% interest in the project, with partners including ExxonMobil, TotalEnergies, Eni, and the Nigerian National Petroleum Corporation Limited (NNPC). The project is expected to sustain oil and gas production at the Bonga facility, with an estimated recoverable resource volume exceeding 300 million barrels of oil equivalent (boe) and a peak production of 110,000 barrels of oil per day. The first oil is anticipated by the end of the decade, and the investment is expected to generate an internal rate of return exceeding Shell's Upstream business hurdle rate.
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Similar markets
Yes • 50%
No • 50%
Acquisition of large assets • 25%
No acquisitions • 25%
Acquisition of small assets • 25%
Acquisition of medium assets • 25%
Equinor • 25%
Equal ownership • 25%
A new partner • 25%
Shell • 25%
More than 160,000 barrels per day • 25%
120,000 to 140,000 barrels per day • 25%
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140,000 to 160,000 barrels per day • 25%
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Oil production • 25%
Renewable energy projects • 25%
Infrastructure development • 25%
Gas production • 25%
Significant increase in production • 25%
Moderate increase in production • 25%
No significant change • 25%
Decrease in production • 25%