In a significant development for Nigeria’s oil and gas sector, Saipem, in partnership with two Nigerian companies, secured a $1 billion offshore contract with Shell for the Bonga North Project, located off the coast of Nigeria. The contract, awarded by Shell Nigeria Exploration and Production Company Limited (SNEPCo), is a key milestone in the country’s deepwater energy production.
As part of the deal, Saipem will deliver the Engineering, Procurement, Construction, and Installation (EPCI) of essential subsea structures for the Bonga North Project. This includes risers, flowlines, subsea umbilicals, and associated infrastructure. The project, situated 130 kilometers offshore Nigeria, will involve local design and fabrication activities, engaging Nigerian suppliers and subcontractors.
The consortium, comprising Saipem, KOA Oil & Gas, and AVEON Offshore, is set to execute the contract, with Saipem’s share valued at approximately $900 million. The project will also benefit from the expertise of TechnipFMC, which will supply the Subsea 2.0 production systems, including subsea tree systems, manifolds, jumpers, and controls.
Bonga North, which operates in water depths exceeding 1,000 meters, will be tied back to the Shell-operated FPSO Bonga, which has been in operation since 2005 and produces 225,000 barrels of oil per day. The project will encompass the drilling and completion of 16 wells, with a mixture of production and water injection wells. The Bonga facility reached a significant milestone in 2023, producing its one-billionth barrel of oil.
The Bonga North project is expected to boost Nigeria’s oil production, with a peak output forecasted at 110,000 barrels of oil per day. First oil is anticipated by the end of the decade. Shell’s investment in Bonga North aligns with the company’s focus on near-field opportunities that leverage its technical expertise and partnerships. The project is projected to contribute significantly to Shell’s upstream portfolio, sustaining oil and gas production at the Bonga facility.
The Bonga North project, with an estimated recoverable resource of over 300 million barrels of oil equivalent (boe), is seen as a strategic investment for Shell, ensuring the continued strength of its upstream operations in Nigeria. The partnership with Nigerian companies underscores the commitment to local involvement and development while also advancing Nigeria’s position as a key player in the global oil and gas industry.
With Shell’s focus on deepwater ventures and integrated gas businesses, the Bonga North project marks another critical step in the company’s strategic investment in Nigeria’s energy sector.
