Shell Petroleum Development Company of Nigeria Limited is a leading petroleum industry in Nigeria. Shell directs amd controls major petroleum companies like NNPC, SPDC and Total Energies admist others. I am trying to let you see that Shell is actually a big deal.
Bonga is a deepwater development located on an oil mining lease(OML 118), at water depth exceeding 1000 meters.
The beginning of Bonga production in 2005 increased Nigeria’s oil capacity by 10% imagine now. What a great improvements in would be!
Imagine what a good news it is that the topmost petroleum company has interest in investing on Bonga North. Actually it was SNEPCo like a branch of Shell that is investing.
In the statement made on Monday by Shell announced that the Bonga Nirth Project will link with Bonga floating production and storage facility to underwater pipelines which it operates with 55%interest. The project would help uphold oil and gas production at Bonga facility.
“The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO,” the statement reads.
Shell also said the Bonga North is estimated to produce over 300 million barrel of oil in total and 110000 barrels of oil per day.
Zoe Yujnovich, Shell integrated gas and upstream director said FId is an important investment.
The President Bola Ahmed Tinubu praised the 5 billion dollar Final Investment Decision by Shell on Bonga North.
This investment gas a wonderful impact on the President’s vision fir the country. It would bring investments to the oil and gas sector Indirectly influencing the country’s economy. It also says alot on the President’s intent for an environment of healthy competition and investment.
Tinubu in his statement stretched the importance of FID signals confidence on Nigeria’s energy sector.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts,” President Tinubu said.
He explained, ” We will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential.”
The President involvement in global energy stake holders was an important factor in this investment. In July 2023, the President had said, ” We are open for business and serious about creating a stable, predictable, and investor-friendly environment.” during a meeting with Shell’s global leadership.
“The Bonga North project is the second major initiative under President Tinubu’s transformative Presidential Directives 40, 41, and 42, which were issued in the first quarter of 2024.
“These directives aim to improve regulatory clarity, shorten project timelines, and incentivise investment in Nigeria’s energy sector.”
Earlier this year, the Ubeta oilfield also achieved FID through partnership with Total Energies and NNPC.
The Special Adviser to the President on Energy spoke about this investment clearing doubts on oil companies leaving Nigeria.
“Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects.
“These projects align with President Tinubu’s vision of transforming Nigeria into a global energy hub,” she noted.
The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President.
“These projects will trigger broader investments that will revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.
“As we look ahead to 2025, we anticipate further FIDs from both international and domestic players, marking a new era of growth and opportunity for Nigeria.”
