Oil major, Shell sees a $5 billion opportunity in Nigeria’s offshore Bonga North oil project and has pledged to spend another $1B within the next 10 years to boost natural gas production for domestic supplies and exports.
The commitment is coming after President Bola Tinubu held talks with Shell executive Zoe Yujnovich in a move to attract capital to the country.
Yujnovich was quoted as saying Shell has “an imminent $5B investment opportunity” in the project, and that “we want to continue and build a pipeline of new investments in Nigeria.”
Oil production in Nigeria Africa’s top producer has been in decline for years, hurt by theft and sabotage, but has picked up in recent months, helped by offshore production that is less prone to attacks.
Bonga North is a conventional oil development located in deepwater in Nigeria and is operated by Shell Nigeria Exploration & Production.
According to GlobalData, who tracks more than 34,000 active and developing oil and gas fields worldwide, Bonga North was discovered in 2005, lies in block OML 118 (OPL 212P), with water depth of around 3,346 feet.
The project is currently in feasibility stage and is expected to start commercial production in 2025.
Final investment decision (FID) of the project will be approved in 2024. The development cost is expected to be $5,455 Million.
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