Shell has announced a significant investment in the Bonga North deep-water project off the coast of Nigeria, demonstrating its commitment to maintaining stable oil production from its global portfolio.

The Bonga North project will involve drilling and completing 16 new wells – eight production wells and eight water injection wells. Modifications to the existing Bonga FPSO and the installation of new subsea infrastructure will also be undertaken to accommodate the increased production.

With an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe), Bonga North is expected to reach a peak production rate of 110,000 barrels of oil per day. First oil production is anticipated by the end of the decade.

The decision to proceed with Bonga North, a subsea tie-back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility, marks a crucial step in sustaining oil and gas output from this key Nigerian asset.

"This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio," said 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."

Shell operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd., Nigerian Agip Exploration Ltd., and TotalEnergies Exploration and Production Nigeria Ltd., on behalf of the Nigerian National Petroleum Company Limited (NNPC). Located in OML 118 at water depths exceeding 1,000 meters, the Bonga FPSO began production in 2005 and achieved a significant milestone in 2023 by producing its one-billionth barrel of crude oil.

The Bonga North development is expected to generate an attractive return on investment, exceeding Shell's internal hurdle rate for upstream projects. This investment aligns with Shell's strategy of leveraging near-field opportunities to enhance production from existing assets. By capitalizing on its technical expertise, strong partnerships, and a streamlined operational model, Shell aims to continue setting new benchmarks in performance within its Upstream business.

The Bonga North project underscores Shell's commitment to Nigeria and its continued focus on deep-water oil and gas production. This investment is expected to not only contribute to Nigeria's energy production but also provide significant economic benefits to the country. Shell, a global energy and petrochemicals leader with a vast workforce spanning over 70 countries, has a longstanding and unwavering commitment to Nigeria, its people, and its economic development. As Nigeria's oldest energy company, Shell leverages advanced technologies and innovative approaches to foster a sustainable energy future.