Shell Nigeria Exploration and Production Company (SNEPCo) has produced first oil from the Bonga North-West deep-water development.

Located in oil mining lease OML 118, about 75 miles offshore Nigeria, the project is part of Shell’s commitment to develop deep-water engineering skills in Nigeria.

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The Bonga project, which came online in 2005, was Nigeria’s first deep-water development, in water depths of more than 1,000m.

Oil from the Bonga North-West subsea facilities is transported through a new undersea pipeline to the existing Bonga FPSO, which has been upgraded to handle the additional oil flow.

At peak, the Bonga North-West is anticipated to contribute 40,000bpd.

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"At peak, the Bonga North-West is anticipated to contribute 40,000bpd."

Shell plans to connect four oil-producing wells and two water-injection wells to the FPSO, from which oil will be loaded on tankers.

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SNEPCo operates the project with a 55% interest under a production-sharing contract with Nigerian National Petroleum.

The company’s partners include Esso Exploration & Production Nigeria (Deepwater), Total E&P Nigeria, and Nigerian Agip Exploration.

Shell upstream international director Andrew Brown said: "This is an excellent addition to our deep-water portfolio; a key growth theme for Shell’s worldwide upstream business.

"It’s also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development."

In 2009, engineering firm Saipem secured an offshore contract, worth more than $200m, for the subsea development of the Bonga North-West project.

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