Shell currently negotiating fresh production sharing contract on Bonga for 2019
Depending on the outcome of ongoing negotiation with the federal government, Royal Dutch Shell and its partners will soon decide whether to go ahead with the development of the nation’s Bonga Southwest offshore oilfield for 2019 operations.
The platform which remains one of the country’s largest with an expected production of 180,000 barrels per day, will generate profit even at below $50 a barrel.
Managing director of Shell Nigeria Exploration and Production Company (SNEPCo), Bayo Ojuli said though the negotiations are expected to finish this year ahead of production, Shell intends to speed up activities as part of moves to grow daily output in the region.
He said the ongoing negotiation will among other things; determine the viability of the project and other associated engagements on Bonga field.
Shell operates the project and ExxonMobil, Total, Eni and the Nigerian National Petroleum Corporation, are partnersBusiness Hilights recalls that Nigeria’s oil output rose by 50,000 bpd in July helped by the return of Shell’s Bonny Light crude grade which had been under force majeure on account of outages to Nembe Creek Trunkline (NTCL) and was subsequently closed for repairs.
The ongoing negotiation stemmed from the the Minister of State for Petroleum’s, directive to the NNPC and SNEPCo to commence the tendering process for the execution of the $10 billion Bonga South West/Aparo deepwater project.
The Minister, Dr. Ibe Kachikwu’s had after the April 17, 2018 meeting between President Muhammadu Buhari and a delegation from Royal Dutch Shell Plc., led by the Chief Executive Officer, Bern Van Beurden, in London, given the directive.
Business Hilights gathered that the Bonga South West/Aparo project estimated at about $10b had been on the drawing board for several years, pending the end of the ongoing negotiation on its Production Sharing Contract (PSC) arrangement with the NNPC.
Other key projects that have also suffered delays in Nigeria’s oil and gas industry include: the 120,000bpd Shell and Eni’s Zabazaba/Etan project in the disputed Oil Prospecting Lease (OPL) 245, ExxonMobil’s 140,000bpd Bosi project, ExxonMobil’s 110,000bpd Uge project and Chevron’s 100,000bpd Nsiko deepwater project.
