Shell invites contractors to bid for Bonga FPSO, after FID agreement on the Assa project
FOLLOWING THE RECENT announcement of a final investment decision (FID) agreement on the Assa North Gas Development Project, Shell Nigeria has announced the invitation to tender (ITT) to contractors for the development of the Bonga South West Aparo, (BSWA) oil field.
The tender is for engineering, procurement and construction contracts for the 150,000 barrels per day project in the Gulf of Guinea, whose 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 oil field lies across oil mining leases (OML) 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO.
“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 invesof tors,” BayoOjulari, SNEPCo’s Managing Director, said after the execution of the Heads of Terms by the Nigeria National Petroleum Corporation, NNPC, SNEPCo, and its partners, revising the terms of the OML 118 Production Sharing Contract.
Ojulari said that “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).”
He also 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, Adam Bradley, SNEPCo’s General Manager for BSWA said that “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.”
SNEPCo pioneered deep offshore exploration in Nigeria with the launch of its 225,000 barrels per day capacity Bonga FPSO in 2005, a development which increased Nigeria’s oil production by 10 percent at the time and stimulated the growth of relevant support industry.
Drawing on Shell’s global deep-water expertise as well as its Nigerian engineers and technicians, SNEPCo has consistently delivered safe, world-class and economically viable projects that provide jobs and training for Nigerians, and opportunities for local contractors.