The first well at the Bonga North West development, offshore Nigeria, has started producing oil, operator Shell has reported.
The project, set to consist of four producing wells and two water injection wells, represents another stage of the country’s first deep-water development, the Bonga project, which began producing oil and gas in 2005.
Oil from the Bonga North West, expected to produce 40,000 barrels of oil equivalent per day, will be transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) vessel for export.
“This is an excellent addition to our deep-water portfolio – a key growth theme for Shell’s world-wide upstream business,” said Andrew Brown, Shell’s upstream international director.
“It’s also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development.”
The Bonga project is operated by the Dutch giant’s Nigerian subsidiary, Shell Nigeria Exploration and Production Company, which holds a 55% stake.
The other project partners are Esso Exploration & Production Nigeria (20%), Total E&P Nigeria (12.5%) and Nigerian Agip Exploration (12.5%) under a production sharing contract with the Nigerian National Petroleum Corporation.