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final investment decision in the Bonga North oil project

(Ecofin Agency) – Last October, TotalEnergies reported that new investments would be formalized by the end of the year in the context of the exploitation of the Bonga oil field located off the coast of Nigeria.

The Anglo-Dutch oil major Shell formalized Monday, December 16, the making of the final investment decision (FID) concerning the exploitation of the Bonga oil field, located in OML 118, off the coast of Nigeria.

According to information provided by Shell Nigeria Exploration and Production Company Limited (SNEPCo), the group’s local subsidiary, this investment concerns the Bonga North Deep offshore field, a deepwater extension of the main deposit.

SNEPCo, which operates this area of ​​interest with a 55% stake, with partners ExxonMobil (20%), TotalEnergies (12.5%) and Eni (12.5%), did not specify the amount of financing decided. But according to several local media, the investment in Bonga North Deep is of the order of $5 billion.

These funds will be used to drill and then finalize 16 wells, modify the main floating production, storage and offloading unit deployed on the site and install new subsea equipment. This, with the aim of recovering more than 300 million barrels of oil equivalent.

According to SNEPCo, the development of the project should make it possible to reach a plateau of 110,000 barrels of oil per day, with a first production planned by the end of the decade.

This development caused the federal government of Nigeria to react. “Bonga North FID dispels misconceptions that international oil companies are leaving Nigeria”said Olu Verheijen, special adviser to the president on energy.

And to add “On the contrary, we are witnessing a strategic reorientation of capital and technical capabilities of international oil companies towards deep water projects and integrated gas projects that fit into President Tinubu’s vision of transforming Nigeria into a global hub energy”.

As for the Ubeta gas project in OML 58, the development phase of which was formalized in September, Verheijen announced that other “FID from international and national actors” should follow next year.

Abdel-Latif Boureima

Read also:

05/10/2015 – Nigeria: Shell starts production in phase 3 of the Bonga field

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