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Shell Nigeria Exploration and Production Company (SNEPCo) has confessed the merits of Nigerian local content policy in the oil and gas sector following the use of local contractors to successfully complete Turnaround Maintenance (TAM) on its deep-offshore Floating, Production, Storage and Offloading (FPSO) at Bonga.
It would be recalled that Bonga oil field has produced about 702 million barrels of oil since inauguration in 2005, and operated at more than 92 per cent availability in 2016.
Managing Director of SNEPCo, Bayo Ojulari, said during a press briefing that the volumes came from the Bonga main field, and Bonga Phases 2 and 3 that unlocked the nearby Bonga North West field in August 2014. It has capacity for 65,000 barrels of oil equivalent per day.
He revealed that the TAM was completed in April, noting that “one of the highpoints of the turnaround was the engagement of about 65 Nigerian contractor and subcontractor companies.
This innovation, he said, marked a turning point in SNEPCo’s efforts to develop the capabilities of Nigerian companies in the provision of goods and services in deep-water oil and gas production”.
“Over 1000 people were involved, spread across worksites and vessels in the exercise described as the biggest in scope in the 12-year history of the asset.
“The exercise stimulated growth of support industries vital to deep-water asset management. It provided a wider benefit to the Nigerian economy by boosting demand for a range of goods and services including offshore vessels and platforms, materials, floating hotel and helicopters.
Giving additional details on the early delivery of the TAM, Ojulari recalled that a critical success factor was the collaboration by more than 10 functions who benchmarked their contributions against a robust execution plan.
He noted that “Procuring materials from Original Equipment Manufacturers (OEMs) saved cost and ensured seamless delivery, and the project team sourced key equipment and carried out fabrications within Nigeria”.
Business Hilights gathered that Bonga is Nigeria’s first deep-water development in depths of more than 1,000 metres, and is located 120km offshore Nigeria. The Bonga Floating Production Storage and Offloading vessel receives crude and gas from production wells on the seabed and has the capacity to produce 225,000 barrels of oil and 210 million standard cubic feet of gas per day. SNEPCo operates Bonga in partnership with Esso Exploration and Production Nigeria (Deep Water) Limited, Total E&P Nigeria Limited and Nigerian Agip Exploration Limited under a Production Sharing Contract with the NNPC.
Analysts say with the completion of TAM, Bonga’s productivity will boost Nigeria’s needed rise in crude production in order to fund the rising yearly budget and gain more from the prevailing crude oil production cut exemption by OPEC.