Shell announces major investment in Nigeria’s oil industry after Mobil exit Nexovant
- Shell has announced another key investment in Nigeria’s oil and gas industry in a significant FDI drive
- The company said its Nigerian subsidiary will invest in Bonga North, a deepwater project with 16 drilling wells
- The company said the project, which began in 2005, produced its one-billionth barrels of crude oil last year
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Shell has said that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), will invest in Bonga North, a deepwater project off the coast of Nigeria.
In a statement on Monday, December 16, 2024, the oil firm said that the Bonga North would be a subsea tie-back to its Bonga floating production storage and offloading (FPSO) facility.
Shell announces investment in Bonga oilfield Credit: Picture Alliance/Contributor
Source: Getty Images
New project will produce 300 million barrels
It stated that the project involves drilling and starting 16 wells, modifications to the existing Bonga Main FPSO, and the installation of new hardware.
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The firm said the project will maintain oil and gas production at the facility.
Shell stated that Bonga North already has a recoverable resource volume of 300 million barrels of oil equivalent and will reach a full production capacity of 110,000 barrels daily.
Shell’s integrated gas and upstream director, Zoe Yugnovic, said the move is another key investment to help the company maintain stable liquid production from its upstream portfolio.
Jugnovic disclosed that the project will help the company’s leading integrated gas and upstream business generate cash into the next decade.
Bonga North produces one billion barrels
Reports say the multinational oil firm operates the Bonga field in collaboration with Esso Exploration Production Nigeria Limited and holds a 20% interest.
Agip Exploration Limited owns 12%, and TotalEnergies Exploration and Production Limited owns 12.5% of the Nigerian National Petroleum Company Limited (NNPC).
Shell disclosed that the Bonga North project produced its one-billionth barrel of crude oil last year since exploration began in 2005.
Read also
Boost for Nigeria: After acquiring ExxonMobil, Seplat moves to revive 400 oil wells
The new project provides the needed relief for the Nigerian economy as international oil companies (IOCs) quickly exit the country’s oil industry.
Experts express hope as ExxonMobil exits Nigeria
Recently, Seplat announced the acquisition of oil and gas assets belonging to ExxonMobil in a $1.28 billion deal.
Experts have expressed concern over the exit of IOCs, which has affected Nigeria’s Foreign Direct Investment (FID) drive.
Chappal Energies acquires Equinor
Legit.ng earlier reported that Chappal Energies had completed the acquisition of Equinor Nigeria Energy Company.
The Norway-based energy firm agreed to sell its Nigerian assets in the Agbami oilfield to Chappal Energies last year.
The federal government proved the sale of Equinor to Chappal via Project Odinmin Investment Limited.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
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