Shell invites bid for new FPSO in Bonga

Managing Director, ExxonMobil Nigeria, Paul McGrath (left); Managing Director, Nigeria Agip Oil Company, Lorenzo Fiorillo; Managing Director, Shell Petroleum Development Company/Country Chair, Shell Companies in Nigeria, Osagie Okunbor; Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari; Chief Operating Officer, Upstream, Nigerian National Petroleum Corporation (NNPC), Bello Rabiu; Chief Operating Officer, Gas and Power, Saidu Muhammad; Managing Director, Total Exploration and Production Nigeria, Nicholas Terraz, and Group General Manager, Corporate Planning and Strategy, NNPC, Bala Wunti, during the execution of the heads of terms for Bonga South West Aparo deepwater oil and gas field in Abuja.


Shell Nigeria Exploration and Production Company (SNEPCo), has announced the release of Invitation to Tender (ITT), to contractors for the development of the Bonga South West Aparo (BSWA) oil field.

This comes 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).

Shell said in a statement 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,” SNEPCo’s Managing Director, Bayo Ojulari, was quoted yesterday,

He added: “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).”Ojulari described 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.

“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.”

On the estimated project cost, SNEPCo’s General Manager for BSWA, Adam Bradley, said: “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.”Sources estimate 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.

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