Shell Puts More Than a Dozen Turnkey Contracts on Offer for Work in Niger Delta
Shell Nigeria has put more than a dozen turnkey contracts on offer for work in the oil-rich Nigeria’s Niger Delta region.According to a report by the Upstream, the “drill to fill” tender process is worth a total of at least $600 million.Shell’s “drill to fill” policy, which aims at producing enough oil and gas through drilling and development investments to maximise the capacities of existing infrastructure, has been around for more than seven years.
The 13 contracts out to bid are majorly in the areas of engineering, procurement and construction packages. It is a joint venture between Shell Petroleum Development Company (SPDC) as the operator and Nigerian National Petroleum Company (NNPC) Limited, TotalEnergies and Eni. Submission of prequalification documents began on January 11.
Shell’s renewed commitment to drilling more oil wells is contrary to rumours that have been making the rounds that most International Oil Companies (IOCs), operating in Nigeria, are planning to leave the country. With these contracts offer, Shell is showing that it is going nowhere.
Drilling in Bonga oil field to be completed in April
The NNPC Limited and the Shell Nigeria Exploration and Production Company (SNEPCo) are expected to complete drilling in the Bonga oil field (OML118) by April. Both companies started drilling the Bonga oil field in April 2022.
Upon completion of the drilling, it is expected to add about 20,000bpd of oil from two oil-producing wells and three injectors. According to a report by the Daily Trust, one of the wells was completed in November 2022 and the second one is nearing completion.
Also, it is expected that NNPC and SPDC will deliver the ANOH Gas project in Asa North and Ohaji South of Imo State by the third and fourth quarters of this year. The project is for drilling six gas wells with a gas processing plant for 250 million metric standard cubic feet per day (MMscf/d).
In addition, about 20 oil wells are expected to be drilled in the Bonga North (OML118) between 2023 and 2027 with a $2.9 billion funding projection. Then, from 2027 to 2031, NNPC and SNEPCO are working on the Bonga South West Aparo field (OML118) to drill about 20 wells; the Owowo field on OML154 is also in process but will begin in phases from 2029 with over 13 oil wells.
This is according to a record of ongoing partnership projects obtained by the Daily Trust from the NNPC Limited.
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Shell in consonance with FG
The renewed commitment of Shell in drilling more wells is in consonance with the Federal Government drive to increase the country’s daily crude oil production, which currently is about 1.183 mbpd.
Early this year, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced the commencement of the 2022 deep offshore mini-bid round.
There are seven blocks on offer. The blocks are: PPL-300-DO, PPL-301-DO and PPL-302-DO are located in the Nigerian Transform Margin area. Blocks PPL-303-DO, PPL-304-DO, PPL-305-DO and PPL-306-DO are within the deepwater Niger Delta Basin.
The commission’s Chief Executive, Gbenga Komolafe, in a statement said the development presents an opportunity to encourage new exploration and drilling activities in the prospective deep waters offshore Nigeria.
“On behalf of the federal government of Nigeria, the NUPRC is pleased to announce the commencement of the 2022 mini-bid round. The mini-bid round is an opportunity to spur new exploration and drilling activities in the prospective deep waters offshore Nigeria,” Komolafe said.
“In this 2022 mini-bid round, seven offshore blocks covering an area of approximately 6,700 sq km in water depths of 1,150m to 3,100m were put on offer.
“The success of the mini-bid round will ensure all stakeholders gain value from the country’s resources, whilst paying close attention to reduction in carbon emissions, as well as overall environmental, social and governance (ESG) considerations,” he said.
