BREAKING: After Exit of Foreign Firms, Shell Announces Major Investment in Nigeria’s Oil Industry

Shell has said that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), will invest in Bonga North, a deepwater project off the coast of Nigeria.

In a statement on Monday, December 16, 2024, the oil firm said that the Bonga North would be a subsea tie-back to its Bonga floating production storage and offloading (FPSO) facility.

The new project will produce 300 million barrels

It stated that the project involves drilling and starting 16 wells, modifications to the existing Bonga Main FPSO, and the installation of new hardware.

The firm said the project will maintain oil and gas production at the facility.

Shell stated that Bonga North already has a recoverable resource volume of 300 million barrels of oil equivalent and will reach a full production capacity of 110,000 barrels daily.

Shell’s integrated gas and upstream director, Zoe Yugnovic, said the move is another key investment to help the company maintain stable liquid production from its upstream portfolio.

Jugnovic disclosed that the project will help the company’s leading integrated gas and upstream business generate cash into the next decade.

Bonga North produces one billion barrels

Reports say the multinational oil firm operates the Bonga field in collaboration with Esso Exploration Production Nigeria Limited and holds a 20% interest.

Agip Exploration Limited owns 12%, and TotalEnergies Exploration and Production Limited owns 12.5% of the Nigerian National Petroleum Company Limited (NNPC).

Shell disclosed that the Bonga North project produced its one-billionth barrel of crude oil last year since exploration began in 2005.

The new project provides the needed relief for the Nigerian economy as international oil companies (IOCs) quickly exit the country’s oil industry.

Experts express hope as ExxonMobil exits Nigeria

Recently, Seplat announced the acquisition of oil and gas assets belonging to ExxonMobil in a $1.28 billion deal.

Experts have expressed concern over the exit of IOCs, which has affected Nigeria’s Foreign Direct Investment (FID) drive.

Chappal Energies acquires Equinor

Legit earlier reported that Chappal Energies has completed the acquisition of Equinor Nigeria Energy Company.

The Norway-based energy firm agreed to sell its Nigerian assets in the Agbami oilfield to Chappal Energies last year.

The federal government proved the sale of Equinor to Chappal via Project Odinmin Investment Limited.