First oil produced from SNEPCO-operated Bonga North West deep-water project in Nigeria

VERBATIM FROM A SHELL PRESS RELEASE 6 AUGUST 2014

06 Aug 2014

Shell’s deep-water subsidiary in Nigeria, Shell Nigeria Exploration and Production Company Ltd (SNEPCo) started oil production from the first well at the Bonga North West deep-water development off the Nigerian coast on Tuesday 5 August 2014, another milestone for the country’s energy industry.

“This is an excellent addition to our deep-water portfolio – a key growth theme for Shell’s world-wide upstream business,” said Andrew Brown, Shell’s Upstream International Director. “It’s also 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.”

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. Bonga North West represents a significant step forward for the project.

Oil from the Bonga North West sub-sea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility. The Bonga FPSO has been upgraded to handle the additional oil flow from Bonga North West which, at peak production, is expected to contribute 40,000 barrels of oil equivalent per day, helping to maintain the facility’s overall output.

Four oil producing wells and two water injection wells in the Bonga North West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world.

The Bonga North West project is part of Shell’s long-standing commitment to developing deep-water engineering skills in Nigeria. The investments made by SNEPCo and its other project partners in the Bonga North West project include upgrades of local contractors’ facilities and providing specialised training for Nigerians to work in the energy industry.

The Bonga project is operated by SNEPCo, which 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.

Notes to editors:

Facts about the Bonga North West project:

• A number of new production manifolds, subsea umbilical systems, oil production and water injection flowlines and subsea tree systems were installed on the sea bed around 1,000 metres below the surface.
• A significant part of the project was carried out by Nigerian companies, including a local contractor that fabricated and installed the FPSO topsides.
• The project leadership and majority of staff working on the Bonga North West project are Nigerian – testament to the growth of deep-water engineering experience in SNEPCo.
• The project has been implemented according to high safety standards. SNEPCo and contractor staff worked in 10 locations in the USA, Europe and Nigeria on various aspects of the project.

SNEPCo was incorporated in 1993. The company holds interests in four deep-water blocks, two of which it operates: OML 118 (Bonga) and OML 135 (Bolia).

 

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