A Review of the Nigerian Energy Industry

Shell commences production from Bonga Phase 3 project

05 October 2015, Lagos – Shell Nigeria Exploration and Production Company Ltd has announced the start-up of production from the Bonga Phase 3 project.

Shell logoThis was contained in a statement issued and signed by Mr Precious Okolobo, the Corporate Media Relations Manager and made available to the News Agency of Nigeria in Lagos on Monday.

The statement quoted Mr Andrew Brown, Shell’s Upstream International Director, as saying, “this new start up is another important milestone for Bonga, adding valuable new production to this major facility.”

Brown said Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil equivalent.

He said this would be transported through existing pipelines to the Bonga floating production storage and offloading facility.

Brown said the FPSO had the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.

According to the statement, 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 600 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, which holds the lease for OML 118, in which the Bonga field is located.

SNEPCo holds a 55 per cent contractor interest in OML 118.

The other co-venturers are Esso Exploration & Production Nigeria Ltd (20 percent); Total E&P Nigeria Ltd (12.5 percent); and Nigerian Agip Exploration Ltd (12.5 percent).

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