Shell OK’s long-delayed Bonga North Nigeria deepwater project

Shell (NYSE:SHEL) said Monday it has taken a final investment decision on its long-delayed Bonga North deepwater project off the coast of Nigeria, which would make it the country’s first major deepwater development to move ahead in several years.

Shell (SHEL) said Bonga North will be a subsea tie-back to the Bonga floating production storage and offloading facility, which it operates with a 55% interest.

Bonga North has an estimated recoverable resource volume of more than 300M boe and is expected to reach peak production of 110K bbl/day, with first oil expected by the end of the decade.

The project, which will sustain oil and gas production at the Bonga facility, involves drilling 16 wells – 8 production wells and 8 water-injection wells – modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO, the company said.