Just like predicted by global energy watchers’ that 2019 will see massive engagements and new deals in the offshore oil and gas activities, Shell Nigeria Exploration and Production Company (SNEPCo), weekend, unveiled activities for the bidding round of Bonga South West Aparo (BSWA) oil field.
The release of Invitation to Tender (ITT), to contractors for the development of the Bonga South West Aparo (BSWA) oil field, came a day after the execution of the Heads of Terms (HoT) by the Nigeria National Petroleum Corporation (NNPC), SNEPCo, and its Unit partners, revising the terms of the OML 118 Production Sharing Contract (PSC).
In a statement made available to Business Hilights, Shell disclosed that the project’s initial phase includes a new Floating, Production, Storage and Offloading (FPSO) vessel, more than 20 deep-water wells and related subsea infrastructure. The field lies across Oil Mining Leases 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO.
“The ITT is for engineering, procurement and construction contracts for the 150,000 barrels per day project in the Gulf of Guinea.
“This is a new vista for deep offshore oil and gas exploration in Nigeria based on a revised commercial framework embraced by government and the project investors,”
The Managing Director, Bayo Ojulari, said “SNEPCo has concluded OML 118 negotiations with the NNPC. We now have a clear commercial framework, supported by the government and project investors, toward a potential Bonga South West Aparo Final Investment Decision (FID).”
While describing the conclusion of the commercial framework as a key milestone for the project, and the development of Nigeria’s deep-water oil and gas industry, Ojulari noted that “The new framework marks the start of the second generation of deep-offshore exploration and development, not just for SNEPCo but for all players in Nigeria’s deep water. This is a model that we see being replicated in the industry to further unleash Nigeria’s potential in deep-water exploration.”
Reviewing the cost estimates, General Manager for BSWA at SNEPCo, Adam Bradley revealed that “The release of ITT will allow ourselves; government and investing parties to understand the actual costs for the initial phases which we expect will be very competitive.”
Though he was economical with worlds, analysts’ assessment suggests that the Bonga South West/Aparo project to cost about $10 billion, with first oil expected around 2021 or 2022, to add 225,000 barrels daily to Nigeria’s crude oil production.
Business Hilights recalls that earlier in the year, the celebrated Total’s Egina FPSO started production with installed capacity of 200,000bpd which raised the nation’s oil export by reasonable percentage.
