Tinubu says “Bonga North reflects transformative reforms under Presidential directives 40, 41, 42”
Verheijen describes Bonga North FID a game-changer, refuting misconceptions about IOCs exiting Nigeria
Oredola Adeola
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has confirmed its final investment decision (FID) for the Bonga North deepwater project off the Nigerian coast.
In a statement released on Monday, SNEPCo revealed that the Bonga North development will be executed as a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% operating interest.
The project will involve drilling, completing, and commissioning 16 wells, comprising eight production wells and eight water injection wells. Additionally, modifications will be made to the existing Bonga Main FPSO, alongside the installation of new subsea infrastructure connected to the facility.
According to SNEPCo, the project aims to sustain oil and gas production from the Bonga facility, with recoverable resource volumes estimated at over 300 million barrels of oil equivalent (boe).
Once operational, Bonga North is expected to reach peak production of approximately 110,000 barrels of oil per day, with first oil anticipated before the end of the decade.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described the development as a critical investment.
“This is another significant step towards maintaining stable liquids production from our advantaged upstream portfolio,” she stated.
President Bola Ahmed Tinubu has praised Shell Nigeria Exploration and Production Company (SNEPCo) and its partners for their Final Investment Decision (FID) on the Bonga North Deepwater Project, marking Nigeria’s first deepwater oil development in over a decade.
In a statement issued on Monday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Tinubu commended the project’s $5 billion investment, which is expected to produce an estimated 350 million barrels of crude oil.
The Bonga North oilfield, located 130 kilometers offshore in Oil Mining Lease (OML) 118, is operated by Shell with a 55% stake, in partnership with NNPC Limited, ExxonMobil, TotalEnergies, and Eni.
President Tinubu emphasized that the FID demonstrates the success of his administration’s efforts to create a more competitive and investor-friendly environment.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people,” he said.
“Shell and its partners’ decision to invest in Bonga North affirms the effectiveness of our policies and reforms. We will continue to support their success and the realization of Nigeria’s energy potential.”
Onanuga highlighted that the Bonga North project reflects the transformative impact of Tinubu’s Presidential Directives 40, 41, and 42, issued in early 2024. These directives aim to streamline regulatory approvals, reduce operational costs, and introduce competitive fiscal incentives to accelerate energy projects.
The Bonga North project is the second in a series of blueprint initiatives under Tinubu’s energy-sector reforms. The first, the Ubeta oilfield in OML 58, achieved its FID earlier this year through a collaboration between TotalEnergies and NNPC Limited.
Dormant since its discovery in 1965, the Ubeta field is set to produce 350 million standard cubic feet of gas daily, boosting Nigeria’s domestic energy supply and strengthening its position in the global energy market.
Onanuga stated that these reforms have re-energized the sector, restored investor confidence and unlocked long-delayed projects.
“The FID on Bonga North signals renewed confidence in Nigeria’s energy sector and underscores the Tinubu administration’s commitment to fostering a robust and competitive investment climate,” he added.
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, has underscored the significance of the Bonga North Final Investment Decision (FID), calling it a pivotal moment that challenges prevailing misconceptions about International Oil Companies (IOCs) exiting Nigeria.
Verheijen remarked, “The Bonga North FID dispels the misconceptions about International Oil Companies leaving Nigeria. Instead, we are witnessing a strategic pivot of IOC-powered capital and technical capacity to deepwater and integrated gas projects, which align with President Tinubu’s vision of transforming Nigeria into a global energy hub.”
She further explained that while IOCs are divesting from onshore operations, this transition creates opportunities for indigenous oil and gas companies to grow and thrive.
“These divestments are building a strong foundation for Nigeria’s energy future,” she said, adding that this shift enhances local participation in the energy sector while enabling IOCs to focus on high-value offshore and gas projects.
The SA to Tinubu further lauded the success of the Bonga North and Ubeta projects as clear evidence of the effectiveness of the Tinubu administration’s reforms.
“These achievements demonstrate the efficacy of the President’s directives in unlocking capital and enabling projects that will not only sustain production but also drive broader investments across Nigeria’s economy,” Verheijen stated.
She mentioned how the projects are set to revolutionize critical sectors, including power generation, transportation, and manufacturing, through expanded energy availability and infrastructure development.
Looking ahead, Verheijen expressed confidence in a wave of additional Final Investment Decisions from both international and domestic players.
She described this as heralding a new era of growth for Nigeria’s energy industry.
“The success of Bonga North and Ubeta is just the beginning. We anticipate further FIDs in the coming year, marking a transformative period of growth and opportunity for Nigeria’s energy sector and economy,” she concluded.
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