Shell has announced its plan to extend the operational lifespan of its Bonga Floating, Production, Storage, Offloading (FPSO) vessel by an additional 15 years.
This extension aims to facilitate increased production from Nigeria’s first deep-water development, which commenced operations in 2005.
The commitment was affirmed in Lagos on Thursday by Ms. Elohor Aiboni, Managing Director of Shell Nigeria Exploration and Production Company Ltd. (SNEPCo). She addressed a panel discussion during the ongoing 8th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC).
Aiboni highlighted that the primary life extension project for Bonga aligns with Shell’s exploration of opportunities in deep-water, gas, and renewable energy sectors in Nigeria. Shell has been a pioneer in oil and gas production in the country since 1956, spanning over 60 years of operations.
What she said
“We are maturing numerous projects planned to come on stream in the short, medium, and long terms with the right fiscal and regulatory framework,”
“Other opportunities in deep-water include the Bonga North as well as Bonga South-West and Nnwa Doro projects on which SNEPCo is collaborating with the Nigerian government and partners to implement.”
“Shell is also expanding its gas portfolio with both SNEPCo and the Shell Petroleum Development Company of Nigeria Ltd (SPDC) maturing several projects to deliver gas from their onshore and deep-water assets.”
“Shell Nigeria Gas is currently serving more than 130 industrial and commercial customers, and looks to expand its distribution network to deliver over 1,000mw equivalent of energy to industrial parks and manufacturing companies,”
She also spoke on the company’s investment in renewable energy projects especially solar power across Nigeria through Daystar and All On.
What you should know
Shell like other international oil majors operating in Nigeria have divested assets its onshore investments to focus on offshore field which the Bonga field is located.
The company recently sold its onshore asset to a group of indigenous oil companies for $1.3 billion– an amount that would reach $2.4 billion after a further $1.1 billion payment.
