Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, has announced a final investment decision (FID) for the Bonga North deep-water project, located off the coast of Nigeria.
The decision was disclosed in a statement issued by Shell in London on Monday.
The Bonga North project will be a subsea tie-back to the existing Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55 per cent operating interest. The project involves the drilling, completion, and start-up of 16 wells, comprising eight production wells and eight water injection wells. It also includes modifications to the Bonga Main FPSO and the installation of new subsea infrastructure.
Bonga North 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). The project is anticipated to reach peak production of 110,000 barrels of oil per day, with first oil projected by the end of the decade.
“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” stated Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.”
SNEPCo operates the Bonga field with a 55 per cent shareholding in partnership with Esso Exploration and Production Nigeria Ltd. (20 per cent), Nigerian Agip Exploration Ltd. (12.5 per cent), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5 per cent), under the aegis of the Nigerian National Petroleum Company Limited (NNPC).
Bonga, a deep-water development located in Oil Mining Lease (OML) 118 at depths exceeding 1,000 meters, has been a key asset since production commenced in 2005. The Bonga FPSO has a production capacity of 225,000 barrels of oil per day and achieved a milestone of producing its one-billionth barrel of crude oil in 2023.
The international oil company confirmed that the resource volumes and peak production estimates are based on 100% total gross figures. The recoverable resource volumes for Bonga North are classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.
Shell emphasized that the investment in Bonga North is expected to deliver an internal rate of return (IRR) exceeding the hurdle rate for its Upstream business. The project reflects Shell’s strategy of leveraging technical expertise, strong partnerships, and a simplified, replicable project model to unlock value from near-field opportunities.
With this decision, Shell reinforces its commitment to sustaining performance and growth in its Upstream operations while contributing to Nigeria’s energy development.
