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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.