Shell Nigeria Exploration and Production Company Limited (SNEPCO) has started oil production from its first well at the Bonga North West deepwater development
The Anglo-Dutch multinational exploration company said that oil from the Bonga North West subsea facilities is currently transported via a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility. The Bonga FPSO has been upgraded to handle the additional oil flow from Bonga North West which, at peak production, is expected to contribute 40,000 boepd, helping to maintain the facility’s overall output.
Andrew Brown, upstream international director at Shell, said, “This is an excellent addition to our deepwater portfolio — a key growth theme for Shell’s world-wide upstream business.
“It’s also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development.”
A number of new production manifolds, subsea umbilical systems, oil production and water injection flowlines and subsea tree systems were installed on the sea bed.
Four new oil producing wells and two water injection wells in the Bonga North West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world, the company added.
The Bonga project is operated by SNEPCO, which holds a 55 per cent stake. The other project partners are Esso Exploration and Production Nigeria (Deepwater) Limited with 20 per cent stake, Total E&P Nigeria Limited with 12.5 per cent holding and Nigerian Agip Exploration Limited owning 12.5 per cent stake under a production sharing contract with the Nigerian National Petroleum Corporation.
SNEPCO was incorporated in 1993. The company holds interests in four deep-water blocks, two of which it operates — OML 118 (Bonga) and OML 135 (Bolia).