A Review of the Nigerian Energy Industry

Shell to add 50,000bpd to Nigeria’s oil production

06 October 2015, Lagos – Shell Nigeria Exploration and Production Company Limited on Monday announced the commencement of production from the Bonga Phase 3 project.

The Bonga Phase 3 is an expansion of the Bonga main development, with peak production expected to be some 50,000 barrels of oil equivalent, the oil major said in a statement.

ShellIt said the output would be transported through existing pipelines to the Bonga floating production storage and offloading facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.

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

The Bonga field, which began producing oil and gas in 2005, was Nigeria’s first deepwater development in depths of more than 1,000 metres.

The field has produced over 600 million barrels of oil to date, according to Shell.

The Bonga project is operated by SNEPCo as contractor under a production sharing contract with the Nigerian National Petroleum Corporation, 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 Limited (20 per cent), Total E&P Nigeria Limited (12.5 per cent) and Nigerian Agip Exploration Limited (12.5 per cent).

Last month, ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Nigeria Limited, started oil production from the Erha North phase two project offshore Nigeria.

The oil major said the Erha North Phase two project would add 65,000 barrels of crude oil to Nigeria’s daily crude oil output. The project is a deepwater subsea development located 60 miles offshore Nigeria in 3,300 feet of water and four miles north of the Erha field, which has been producing since 2006.

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