Bonga South West emerges as one of the world’s largest potential energy projects; meanwhile, a major maintenance shutdown temporarily slashes Nigerian output by 225,000 bpd
Shell Plc is eyeing a potential $20 billion investment in Nigeria’s Bonga South West deepwater project — one of the largest offshore oil developments anywhere in the world — just as its existing Bonga floating production unit has been shut down for a sweeping maintenance overhaul that will temporarily cut the country’s oil export capacity by roughly 225,000 barrels per day.
Shell Chief Executive Officer Wael Sawan confirmed that the company is actively working with joint venture partners on Bonga South West, a deepwater field estimated to hold around 820 million barrels of oil and capable of peaking at 220,000 barrels per day. In a video shared by Nigeria’s presidency, Sawan described the project as one of the world’s largest potential energy developments and said Shell is also assessing additional investment opportunities in the country.
Roughly half of the projected $20 billion would go toward capital expenditure, with the rest earmarked for operating costs and other in-country spending. Shell holds the largest equity stake in the project, alongside ExxonMobil, TotalEnergies, Eni, and Nigeria’s state-owned NNPC. Sawan said recently approved government incentives have improved project visibility and investor certainty, and that Shell plans to kick off pre-FID work in the coming months.
The renewed optimism around Bonga South West comes even as the existing Bonga FPSO — Nigeria’s first-ever deepwater production vessel — sits idle for what Shell Nigeria Exploration and Production Company describes as a landmark turnaround. SNEPCo Managing Director Ronald Adams said the work, which includes statutory inspections, integrity upgrades, and engineering modifications, is designed to keep the facility running safely and efficiently for another 15 years.
Operations are expected to resume in March once the turnaround is complete. The Bonga FPSO, located roughly 120 kilometres offshore in water depths exceeding 1,000 metres, delivered its one-billionth barrel of oil in February 2023 after beginning production in 2005.
Shell paid $5.34 billion in taxes and other charges to Nigeria in 2024 — more than to any other country — as the company continues to progress toward exiting its onshore operations in the Niger Delta, one of its most emissions-intensive asset portfolios.
Source: angolanminingoilandgas.com | bairdmaritime.com