Shell Greenlights Bonga North Deep-Water Project, Targeting 110,000 Bpd Output

Shell PLC’s (NYSE:SHEL) Nigerian subsidiary SNEPCo made the final investment decision for Bonga North, a deep-water project off Nigeria’s coast.Bonga North, classified as 2P (proven and probable) under SPE’s Petroleum Resources Management System, will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading facility, in which Shell holds a 55% interest.Located in OML 118 at water depths exceeding 1,000 meters, Bonga began production in 2005 with a capacity of 225,000 barrels of oil per day. The field achieved its one-billionth barrel of crude oil in 2023.The ...Full story available on Benzinga.com

Shell PLC’s SHEL Nigerian subsidiary SNEPCo made the final investment decision for Bonga North, a deep-water project off Nigeria’s coast. Bonga North, classified as 2P (proven and probable) under SPE’s Petroleum Resources Management System, will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading facility, in which Shell holds a 55% interest. Located in OML 118 at water depths exceeding 1,000 meters, Bonga began production in 2005 with a capacity of 225,000 barrels of oil per day.

The field achieved its one-billionth barrel of crude oil in 2023. The project entails drilling and completing 16 wells (8 production and 8 water injection), modifying the Bonga Main FPSO, and installing new subsea infrastructure. With estimated recoverable resources of over 300 million barrels of oil equivalent, Bonga North will sustain production at the Bonga facility, targeting peak output of 110,000 barrels of oil per day, with first oil expected by the end of the decade.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. The Bonga North development holds over 300 million barrels of recoverable oil equivalent and is expected to reach peak production of 110,000 barrels of oil per day. Shell’s investment in Bonga North is projected to exceed its Upstream business hurdle rate, aligning with its strategy to drive performance through near-field opportunities, technical expertise, and simplified, replicable development models.

Investors can gain exposure to the stock via Xtrackers RREEF Global Natural Resources ETF NRES and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX . Price Action : SHEL shares are down 0.25% at $63.

38 premarket at the last check Monday. Read Next : Democratic Congressman Bought DJT Stock After 2024 Election, Months After Saying Donald Trump ‘Unfit To Serve’ Image by siam.pukkato via Shutterstock.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. © 2024 Benzinga.com.

Benzinga does not provide investment advice. All rights reserved..