Shell Eyes 2024 FID for Bonga North, Gas Projects, Seeks NCDMB Support

Abuja, Nigeria – February 9, 2024 Shell Companies in Nigeria (SCIN) is seeking the support of the Nigerian Content Development and Monitoring Board (NCDMB) to accelerate the development of three major oil and gas projects, including the Bonga North deepwater project and the HI and HA gas projects.

Key Points:

• Shell aims to take the Final Investment Decision (FID) on the projects in 2024.
• Bonga North would unlock 350 million barrels of oil equivalent and extend the life of the Bonga FPSO by 15 years.
• HI and HA gas projects would supply 50% of gas needed for NLNG’s Train 7 project.
• Shell emphasizes the need for speedy approvals and cost management.

Meeting with NCDMB:

SCIN Chairman, Mr. Osagie Okunbor, met with NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe, to discuss project plans and request fast-tracked approvals. Ogbe reaffirmed commitment to meeting Service Level Agreement (SLA) timelines.

Transparency and Win-Win Approach:

Ogbe urged transparency and adherence to Nigerian Oil and Gas Industry Content Development (NOGICD) Act requirements. He advocated for a collaborative approach ensuring benefits for local companies and project profitability.

Divestment Clarification:

Okunbor clarified that Shell Petroleum Development Company (SPDC) divestment won’t affect existing contracts. Major projects, particularly gas projects, will be developed under SNEPCo. He emphasized it’s a business realignment, not impacting operations or staff.

Project Details:

• Bonga North: Tie-back project unlocking 350 million barrels and extending Bonga FPSO life by 15 years.
• HI and HA gas projects: To supply 50% of gas needed for NLNG’s Train 7 project.

Fast-Tracking Approvals and Cost Management:

Shell seeks NCDMB’s support to expedite approvals due to challenging project economics. Careful cost management is crucial for both in-country and out-of-country scopes.

Collaboration and Commendation:

Okunbor congratulated Ogbe on his appointment and reaffirmed SCIN’s support for NCDMB’s mandate. He commended Ogbe’s focus on improving approval speed to facilitate new projects.

MD’s Perspective:

SNEPCo Managing Director, Mrs. Elahor Aiboni, reiterated Shell’s commitment to developing Bonga North quickly to boost Nigeria’s crude oil production.

Overall, this news highlights Shell’s ambitious plans for 2024, seeking NCDMB collaboration for faster approvals and successful project execution