Shell maintains pre-FID options worth 405,000 bpd offshore Nigeria

Shell still has four major pre-FID options to develop its reserves offshore Nigeria, according to the major’s latest quarterly presentation. These represents the biggest share of the company’s pre-FID options across its global upstream portfolio.

Most projects are concentrated on and around the Bonga deep-water field on OML 118, where the production sharing contract (PSC) was renewed in May 2021. Shell continues to consider three major projects on the block, including brownfield projects like Bonga North Tranche 1 (120,000 boepd at peak) and Bonga Main Life Extension & Upgrade (60,000 boepd at peak). It also has the option of developing Bonga Southwest, which would rely on a new FPSO and a unitization with the Aparo field, for a peak production of 150,000 boepd.

The two brownfield projects are likely to be prioritized given their lower development costs. In May 2022, Shell notably started the tendering process for the Bonga North subsea tie-back project. The pre-qualification documents included three different packages:  the topsides modification of the Bonga FPSO (design engineering, procurement, transportation, fabrication, offshore installation and commissioning); the engineering, procurement and construction of flowlines, risers, umbilicals, and installation works; and the design, manufacture, and supply of subsea equipment and provision of healthcare support.

The major also continues to make progress towards the development of the shallow-water HI gas field, in partnership with Nigerian independent Sunlink Petroleum. While the development concept has not been officially confirmed, the field is expected to be a key supplier of gas to Nigeria LNG’s upcoming Train 7.  

Details on deep-water activity in Nigeria are available within your Hawilti+ research terminal.

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