A day after the Nigeria National Petroleum Corporation (NNPC) executed the process of the Heads of Terms (HoT), Shell Nigeria Exploration and Production Company (SNEPCo) is inviting interested bidder for one of the company’s oilfield.
SNEPCo announced the release of Invitation to Tender (ITT), to contractors for the development of the Bonga South West Aparo (BSWA) oil field. The decision was made public yesterday, through a statement.
The invitation for bidders was announced by SNEPCo’s Managing Director, Bayo Ojulari, a day after the execution of the Heads of Terms (HoT) by NNPC, SNEPCo, and its Unit partners, revising the terms of the OML 118 Production Sharing Contract (PSC).
It was reported that the project’s initial phase includes a new Floating, Production, Storage and Offloading (FPSO) vessel, more than 20 deep-water wells and related subsea infrastructure. The field lies across Oil Mining Leases 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO.
About the oilfield project
The Invitation to Tender (ITT) is for engineering, procurement and construction contracts for the 150,000 barrels per day project in the Gulf of Guinea.
“This is a new vista for deep offshore oil and gas exploration in Nigeria based on a revised commercial framework embraced by government and the project investors,” SNEPCo’s Managing Director, Bayo Ojulari, was quoted yesterday,
While describing the conclusion of the commercial framework as a key milestone for the project and the development of Nigeria’s deep-water oil and gas industry, Ojulari said;
“SNEPCo has concluded OML 118 negotiations with the NNPC. We now have a clear commercial framework, supported by the government and project investors, toward a potential Bonga South West Aparo Final Investment Decision (FID).”
“The new framework marks the start of the second generation of deep-offshore exploration and development, not just for SNEPCo but for all players in Nigeria’s deep water. This is a model that we see being replicated in the industry to further unleash Nigeria’s potential in deep-water exploration.”
SNEPCo’s General Manager for BSWA, Adam Bradley said the post-bidding process will help all parties involved in the project to understand the costs, which he believes will be competitive.
“The release of ITT will allow ourselves, government and investing parties to understand the actual costs for the initial phases which we expect will be very competitive.”
Meanwhile, sources estimated the Bonga South West/Aparo project will cost about $10 billion, with first oil expected around 2021 or 2022, to add 225,000 barrels daily to Nigeria’s crude oil production.
Shell Nigeria Exploration and Production Company Limited (SNEPCo)
SNEPCo was incorporated in 1993 to develop Nigeria’s deep-water oil and gas resources. It is a 100% Shell-owned company and holds interests in four deep-water blocks, under the terms contained in a Production Sharing Contract (PSC). SNEPCo operates OML-118 (including the Bonga field, Shell interest 55%) and OML-135 (Bolio and Doro, Shell interest 55%). SNEPCo also has a 50% interest in OPL-2451 (Zabazaba, Etan), which is operated by the ENI subsidiary Nigerian Agip Exploration Limited and a 43.75% interest in OML-133 (Erha) operated by the ExxonMobil subsidiary Esso Exploration and Production Nigeria (Deepwater) Limited.