President Bola Tinubu yesterday hailed Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc’s decision as it announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55 per cent interest.

According to a statement yesterday, 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.

It explained that the project will sustain oil and gas production at the Bonga facility. 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.

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

The statement said Bonga North would help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.

Meanwhile, President Bola Tinubu yesterday hailed Shell and its partners’ announcement of the FID on the Bonga North Deep Offshore Field.

According to him, the development is an attestation to the transformative impacts of his policies and reforms in the oil and gas sector.

According to a presidential statement, the FID signals a renewed confidence in the energy sector and demonstrates the effectiveness of the government’s strategic focus on engendering a robust and competitive investment climate.

Tinubu said: “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. “We designed our policies and reforms from the start of my administration to achieve this goal.

“Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. “We will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential.”

He added: “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”