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Shell announces 150,000bpd Bonga South West Aparo ITT

Shell announces 150,000bpd Bonga South West Aparo ITT

By Anthony Okafor

Shell Nigeria Exploration and Production Company (SNEPCo) has released Invitation to Tender (ITT) to contractors for the development of the Bonga South West Aparo (BSWA) oil field.

The 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 field lies across Oil Mining Leases 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO.

The ITT is for engineering, procurement and construction contracts for the 150,000 barrels per day project in the Gulf of Guinea.

Shell announces 150,000bpd Bonga South West Aparo ITT
The Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojulari, executing the Heads of Terms for Bonga South West Aparo deep-water oil and gas field, in Abuja.

SNEPCo’s Managing Director, Bayo Ojulari, yesterday executed Heads of Terms by the Nigeria National Petroleum Corporation (NNPC), SNEPCo and its joint ventures partners, revising the terms of the OML 118 Production Sharing Contract.

According to Mr. Ojulari, “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 investors,”

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).”

Ojulari 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.

READ MORE: Shell, Total, others sign 300mn cubic feet gas FID

“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, SNEPCo’s General Manager for BSWA, Adam Bradley said, “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.”


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