Shell Nigeria Exploration and Production Company Limited (SNEPCo), has reached a final investment decision (FID) on the Bonga North deep-water project, located in OML 118 offshore Nigeria.

The project, which will help maintain oil and gas production at Bonga facility, will be tied back to Shell’s Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% stake.

The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.

Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade, the company said on Monday.

In 2005, Bonga FPSO began production with a capacity of 225,000 barrels of oil per day and in 2023 the project produced one-billionth barrel of crude oil.