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Shell Issues Tender For 120,000Bpd Bonga North Asset Development

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Shell has issued three engineering, procurement, and construction (EPC) proposals for the 120,000 barrel per day Bonga North development in Nigeria. The project features a subsea tieback to the Bonga Main FPSO and is located in OML 118. The license operator, Shell Nigeria Exploration and Production Co. (SNEPCo), has invited contractors to tender for the work. It has issued three tenders for the provision of flowlines, topsides engineering, and subsea equipment.

The block is 1,200 square kilometers in size and is 120 kilometers from the shore. It may be found in depths of 900 to 1,300 meters. A production flow loop with four drill centres, a single water injection flowline, two dynamic umbilicals, and one gaslift umbilical is part of the development plan.

To be eligible to submit a pre-qualification proposal, interested parties must be registered to deliver services as of June 7, 2022. SNEPCo claimed it was seeking pre-qualification from “capable, reputable, and competent Nigerian companies.”

The scope of work for the brownfield modification of the FPSO is covered under the first EPC tender. The Bonga North topsides need design engineering, procurement, transportation, fabrication, offshore installation, and commissioning. Integration with subsea umbilical’s, flowlines, and risers is included (SURF). From design through commissioning, the EPC 2 tender covers all aspects of delivering the SURF package. Meanwhile, EPC 3 encompasses subsea equipment design, manufacture, and supply, as well as healthcare support. Shell’s Bonga Main FPSO began operations in 2005 and has a capacity of 225,000 barrels per day. Shell does not provide current production numbers, but it has added new fields to assist in maintaining output, but none is as huge as the Bonga North project.

Bonga South West Aparo, a new FPSO in the vicinity, has been mentioned by the company (BSWA). This project has undergone a lot of setbacks, and its future is uncertain. Whereas BSWA is expected to cost up to $10 billion, Bonga North is expected to cost roughly $2 billion, according to some estimates.

Shell’s most recent presentation also includes a project for Bonga Main life extension and upgrade. According to the corporation, peak output would be 60,000 bpd. Shell has stated that while it sees prospects in the deep-water, it is eager to leave the onshore. Speaking at the company’s AGM this week, CEO Ben van Beurden emphasized the security difficulties. “There is almost complete lawlessness in the Delta, it’s very difficult for a company like us to operate in,” he said, in response to a question around oil spills.  “In the end, we have to concede [providing security] is beyond what we can do. We’re reviewing our operations onshore in Nigeria. Gradually, and now quite quickly, we’re removing ourselves from onshore oil because this is an impossible position.”

Source:  Oriental News

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