Royal Dutch Shell will make a final investment decision (FID) on the development of Nigeria’s Bonga Southwest deepwater oilfield in 2019.
The bulk of the oilfield is located in Oil Mining Licence (OML) 118 but it also extends into OMLs 132 and 140, operated by U.S. supermajor Chevron, where it is called Aparo and the remaining partners in the field are US giant ExxonMobil, France’s Total, Italy’s Eni and South Africa’s Sasol Petroleum.
Bayo Ojuli, Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), said the project, with an expected output of 180,000 barrels per day (b/d), will generate profit at below $50 a barrel, Reuters reports.
Ojuli said the oil giant is currently negotiating a production sharing contract with the Nigerian government which will determine the viability of the project.
The negotiations are expected to finish this year.
Shell operates the project and ExxonMobil, Total, Eni and the Nigerian National Petroleum Company are partners.
Nigeria’s Bonga Southwest offshore oilfield
The decision to go ahead or withhold action the development of Nigeria’s Bonga Southwest offshore oilfield by Royal Dutch Shell and its partners has been going on for a while.
The delays in the execution of these projects, which are estimated to cost about $23 billion, are largely caused by the lack of clarity in terms of operation and inadequate funding.