Shell has awarded a major contract to TechnipFMC, a UK-based energy technology firm, to supply subsea production systems for the Bonga North oil and gas project in Nigeria. This deepwater development is a significant step in boosting Nigeria’s oil output, showcasing advanced technology and global partnerships.
What’s the Bonga North Project About?
Bonga North, located in water depths of over 1,000 metres off Nigeria’s coast, is tied to Shell’s existing Floating Production, Storage, and Offloading (FPSO) unit, Bonga. The FPSO, operational since 2005, has a capacity of 225,000 barrels of oil per day and recently hit a milestone of producing its one-billionth barrel.
The Bonga North project involves drilling 16 wells eight for production and eight for water injection. These wells will feed into the Bonga FPSO, which will also undergo modifications to handle the additional capacity.
TechnipFMC’s Role
Under the deal, valued between $250 million and $500 million, TechnipFMC will deliver its cutting-edge Subsea 2.0 production systems. This includes the design and manufacture of essential equipment such as subsea tree systems, manifolds, jumpers, and control systems.
Jonathan Landes, President of Subsea at TechnipFMC, praised the collaboration, saying, “Shell was the first to embrace our Subsea 2.0 technology, and this project further strengthens our partnership. It also opens doors for more opportunities in deepwater projects across the region.”
Why Is This Important for Nigeria?
The Bonga North project is expected to significantly enhance Nigeria’s oil production. Once operational, it will add substantial output to the existing production from the Bonga FPSO.
By leveraging advanced subsea technology, the project is set to optimise oil recovery, reduce operational risks, and extend the lifespan of offshore assets. This translates into increased revenue for Nigeria and boosts its standing in the global oil market.
A Glimpse of the Future
Shell’s investment in Bonga North reflects its commitment to sustainable and efficient oil production. This project also highlights the growing role of technology in unlocking offshore energy resources.
With a final investment decision already in place, Bonga North is on track to become a cornerstone of Nigeria’s deepwater oil and gas industry. This partnership between Shell and TechnipFMC is not just about oil it’s about shaping a future where technology and collaboration drive growth and energy security.
