Shell Nigeria Exploration and Production Company Ltd (SNEPCo), the deep water subsidiary of the Shell Group in Nigeria, says it plans to produce additional 40,000 barrels of oil equivalent per day from eight new wells drilled in the Bonga offshore oil field.
The company said the new fields, which are in the third phase of the Bonga Main development project, would help maximise deep-water production capacity off Nigeria’s coast.
Production from the fields is expected to add the new production capacity to the Bonga field capacity through the existing Bonga floating production, storage and offloading (FPSO) facility.
Shell’s Vice President Nigeria & Gabon, Markus Droll, said in addition to the ongoing Phase 2 drilling, after the start-up of Bonga North-West barely two months ago, the new field development programme further underlines the company’s commitment to Nigeria and leadership in deep-water production.
Phase 3 development programme is an expansion of the existing Bonga Main development, which involve drilling four oil-producing and four water injection wells expected to start in 2015.
Output from the new wells would be transported through existing pipelines to the FPSO facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.
Work on the Phase 3 would be executed by several contractors, including Nigerian companies that have developed deep-water expertise through the provision of similar services for SNEPCo.
The Bonga field, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in depths of more than 1,000 metres.
Bonga has produced over 500 million barrels of oil to date.
The Bonga project is operated by SNEPCo as contractor under a production sharing contract with the Nigerian National Petroleum Company (NNPC), which holds the lease for oil mining lease (OML 118), where the Bonga field is located.
SNEPCo holds a 55 per cent contractor interest in OML 118, with the other co-venturers being Esso Exploration & Production Nigeria Limited (20 per cent), Total E&P Nigeria Ltd (12.5 percent) and Nigerian Agip Exploration Limited (12.5 per cent).