17 February 2015, Lagos – The Shell Nigeria Exploration and Production Company Limited, SNEPCo, has restated its commitment to the implementation of the SNEPCo-operated Bonga South West/Aparo, BSWA project. It therefore denied recent reports that it has stopped the development due to the slump in oil price.
The Managing Director, SNEPCo, Mr. Tony Attah, was quoted as saying, “We can confirm that we are currently progressing the tender for the Engineering, Procurement and Construction, EPC contracts to support the project.”
“Although, the process has encountered some delays, we are optimistic for a final investment decision in the 2015/16 timeframe under the right conditions,” he added.
The statement said the BSWA project includes the construction of a new floating production, storage and offloading, FPSO facility with an expected peak production of 225 thousand barrels of oil per day. The BSWA field straddles Oil Mining Leases, OMLs 118, 132 and 140.
SNEPCo is the Unit Operator of the BSWA unitisation project pursuant to a Pre-Unit Agreement with the Nigerian National Petroleum Corporation, NNPC; Esso Exploration & Production Nigeria (Deepwater) Ltd.; Total E&P Nigeria Ltd.; Nigerian Agip Exploration Ltd.; Texaco Nigeria Outer Shelf Ltd.; Star Ultra Deep Petroleum Ltd.; Sasol Exploration and Production Nigeria Ltd.; and Oil and Gas Nigeria Ltd.
The Bonga project itself, which began producing oil and gas in 2005, is Nigeria’s first deep-water development in water depths of over 1,000 metres.
In 2014, SNEPCo also started oil production at the Bonga North West deep-water development, with the oil transported by a new undersea pipeline to the existing Bonga FPSO and export facility. In November 2014, SNEPCo announced plans to drill eight more wells in the Bonga field in the third phase of the Bonga Main development.
Bonga has produced over 500 million barrels of oil to date.