More money: Bonga North West project produces oil for the first time

by David Cyril

Shell Nigeria has started its first oil production from Bonga North west project, which is situated off the Nigerian coast the field which covers an area of 60 square kilometres, lies 120 kilometres offshore in the Gulf of Guinea.

The field also supplies gas to the Nigeria Liquefied Natural Gas (LNG) Company Limited at Bonny Island, from where it is exported as LNG to European and global markets.

Shell’s deep water subsidiary in Nigeria, known as Shell Nigeria Exploration and Production Company Ltd (SNEPC) was formed in 1993 to develop Nigeria’s deep water oil and gas resources, operates the Bonga project and holds a 55% stake. The other project partners are Esso Exploration & Production Nigeria (Deepwater) Limited (20%), Total E&P Nigeria Limited (12.5%) and Nigerian Agip Exploration Limited (12.5%) under a production sharing contract with the Nigerian National Petroleum Corporation.

The Bonga project, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in water depths over 1,000 metres. Oil production from the first well began on 5 August and “represents a significant step forward for the project”, SNEPCo said.

Oil from the Bonga North West sub-sea facilities will be transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility.

“Its good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development,” said Andrew Brown, Shells upstream international director.

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