TechnipFMC bags subsea contract for Shell’s Bonga North development

TechnipFMC has been awarded a substantial subsea contract by Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, for the Bonga North development, a major deep-water oil production project in Nigeria. The project underscores Shell’s ongoing commitment to enhancing energy output through cutting-edge technology and strategic partnerships in offshore exploration and production.

This contract, valued between $250 million and $500 million, involves the design and manufacture of advanced Subsea 2.0 production systems. These include subsea tree systems, manifolds, jumpers, controls, and related services, all engineered to deliver high performance in the challenging deep-water environment of the Bonga field.

Jonathan Landes, President of Subsea at TechnipFMC, described the agreement as a testament to Shell’s trust in their innovative Subsea 2.0 configure-to-order solution. Landes emphasised that Shell’s adoption of this system for the Bonga North project reflects its commitment to deploying state-of-the-art technologies across global operations, enhancing both efficiency and scalability.

What is the Bonga North Development?

The Bonga North development represents a critical component of Shell’s strategy to optimise its deep-water energy production portfolio. Located within the prolific OML 118 block, the project will be tied back to the existing Bonga Floating Production Storage and Offloading (FPSO) facility, an infrastructure cornerstone for Nigeria’s offshore oil and gas production.

The initiative involves the drilling and activation of 16 wells—eight production wells and eight water injection wells. These wells are expected to deliver a peak output of 110,000 barrels of oil per day, significantly bolstering Shell’s Nigerian operations. Over its lifecycle, the project aims to recover more than 300 million barrels of oil equivalent (boe), contributing to Shell’s upstream growth strategy and long-term cash flow targets.

Why is the Bonga FPSO Facility Central to Nigeria’s Offshore Success?

Since its commissioning in 2005, the Bonga FPSO facility has played a vital role in Nigeria’s offshore energy sector. Positioned in water depths exceeding 1,000 meters, the facility has a peak production capacity of 225,000 barrels per day. The FPSO celebrated its one-billionth barrel milestone in 2023, a testament to its enduring operational efficiency.

By integrating the Bonga North development into this existing infrastructure, Shell and its partners aim to minimise costs and maximise output. This subsea tie-back approach exemplifies a near-field development strategy, which prioritises leveraging established facilities to expand production without the need for entirely new infrastructure.

How Does TechnipFMC’s Subsea 2.0 Technology Support Bonga North?

TechnipFMC’s Subsea 2.0 technology is central to the success of the Bonga North project. This innovative solution simplifies subsea equipment design and manufacturing, enabling faster deployment and reducing operational costs. By delivering standardised, configure-to-order systems, Subsea 2.0 allows for seamless integration with existing subsea infrastructure, such as the Bonga FPSO facility.

This contract not only reaffirms TechnipFMC’s position as a global leader in subsea solutions but also strengthens its long-standing partnership with Shell. Both companies are working collaboratively to address the complexities of deep-water energy production, ensuring sustainability and operational excellence.

What Impact Will Bonga North Have on Nigeria’s Oil Production?

The Bonga North development is expected to enhance Nigeria’s position as a major player in the global oil market. The project aligns with the Nigerian government’s objective of increasing domestic energy output while fostering partnerships with leading energy companies.

At its peak, the Bonga North project will contribute an additional 110,000 barrels of oil per day, complementing the production from the broader Bonga field. This output will play a critical role in meeting global energy demands, particularly as the industry continues to navigate the challenges of energy transition and sustainable development.

Why Does This Contract Matter?

The awarding of this contract to TechnipFMC signifies Shell’s confidence in advanced subsea solutions for addressing the complexities of deep-water oil production. It also highlights Shell’s broader strategy of optimising its upstream portfolio through innovation and cost-efficient operations.

By focusing on subsea tie-back projects like Bonga North, Shell is not only expanding production but also reducing environmental and financial risks associated with large-scale infrastructure projects. This approach underscores the importance of collaboration between global energy companies and technology providers in shaping the future of offshore oil and gas development.

TechnipFMC’s substantial contract for the Bonga North development marks a significant milestone in Nigeria’s deep-water energy production. By integrating state-of-the-art subsea technology with Shell’s established infrastructure, the project promises to deliver enhanced oil output while optimising operational efficiency.

As Shell continues to prioritise innovation in its global operations, projects like Bonga North serve as benchmarks for sustainable and cost-effective offshore energy development. This partnership between Shell and TechnipFMC not only strengthens their long-standing collaboration but also reaffirms their commitment to advancing Nigeria’s energy sector.