Shell Nigeria Exploration & Production Co. Ltd. (SNEPCo) has started production offshore Nigeria from the Bonga Phase 3 project, an expansion of the Bonga Main development. Peak production is expected at 50,000 barrels of oil equivalent daily.
The investments made by SNEPCo and its other project partners in the Bonga project include upgrades of local contractors’ facilities and providing specialized training for Nigerians to work in the energy industry which has seen a significant part of the Bonga project carried out by Nigerian companies, including a local contractor that fabricated and installed the FPSO topsides, while the project leadership and majority of staff working on the Bonga project are Nigerians – testament to the growth of deep-water engineering experience in SNEPCo.
The Bonga Field is an oilfield in Nigeria. It was located in License block OPL 212 off the Nigerian coast, which was renamed OML 118 in February 2000. The field covers approximately 60 km2 in an average water depth of 1,000 meters (3,300 ft). The field was discovered in 1996, with government approval for its development given in 2002. The field began first production in November 2005. Resources is transported through existing pipelines to the Bonga floating production, storage, and offloading (FPSO) facility, which can produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day. The field produces both petroleum and natural gas; the petroleum is offloaded to tankers while the gas is piped back to Nigeria where it is exported via an LNG plant. The field contains approximately 6,000million barrels of oil out of which 600 million had been produced to date.
The Bonga project is operated by SNEPCo as contractor under a production sharing contract with the Nigerian National Petroleum Company, which holds the lease for OML 118, in which the Bonga field is located and holds a 55% contractor interest in OML 118. The other co-venturers are Esso Exploration & Production Nigeria Ltd (20%), Total E&P Nigeria Ltd (12.5%) and Nigerian Agip Exploration Ltd (12.5%).
Located 120 kilometers (75 mi) southwest of the Niger Delta, the first discovery well was spudded in September 1995 after acquiring extensive information about the block via a 3D seismic survey in 1993/94. It is Nigeria’s first water oil field of 1,000 meters depth.